Free Copy of My Book: Building Wealth In the TSP: Your Road Map To Financial Freedom as A Federal Employee:
FREE WEBINAR: “The 7 Biggest FERS Retirement Mistakes”:
Want to schedule a consultation? Click here:
Submit a question here:
I am a practicing financial planner, but I’m not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice….(read more)
LEARN MORE ABOUT: Thrift Savings Plans
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
The L Funds, which are a popular type of investment option for federal government employees, are set to undergo some significant changes in 2023. The changes that are being made are designed to increase the ability of employees to diversify their portfolios, while also providing a more effective means of managing risk.
One of the most important changes that is being made to the L Funds is the addition of a new fund, the L 2060. This new fund is being introduced in order to provide employees with a greater level of flexibility when it comes to long-term investments. The L 2060 will be a more aggressive investment option, with a higher allocation of stocks and a lower allocation of bonds. This new fund is designed for employees with a longer time horizon, and who are willing to take on more risk in order to potentially achieve higher returns.
In addition to the introduction of the L 2060, the other L Funds are also seeing changes in their asset allocation mix. The L 2055, for example, is having its bond allocation reduced, while its stock allocation is being increased. This change is being made in order to provide employees with a more diversified portfolio that is better equipped to handle market volatility.
Another change that is being made to the L Funds is the way that they are being managed. The Thrift Savings Plan (TSP) is moving away from a “target date retirement” approach, and is instead shifting to a more “target risk” approach. This means that the L Funds will be managed based on the level of risk that they are comfortable taking on. For example, the L 2060 will be managed with a higher level of risk than the L 2025.
Overall, these changes to the L Funds are designed to provide federal government employees with a more effective means of managing their retirement savings. The addition of the L 2060 provides employees with a greater ability to customize their investment strategy to meet their individual needs, while the changes to the asset allocation mix and the management approach are designed to provide a more diversified portfolio that is better equipped to handle market volatility. Employees who participate in the TSP should pay close attention to these changes next year, as they will have a significant impact on the way that their retirement savings are managed.
They put the L in the L fund… don’t take the L…
Happy Thanksgiving Haws
What if you don't plan to touch tsp when you retire can you pick the L fund that correlates with the year you plan to touch it ?
Nice video for those who haven't thought about it, just as the L funds are nice for those who haven't thought about it. Early in one's career "set it and forget it" is probably a good thing. As one approaches retirement being more deliberate about these decisions becomes more important. If one has tax-qualified accounts both in and out of the TSP, then the L fund makes balancing the overall portfolio more complicated. The last year has taught us that the G fund not having "duration" (does not shrink as rates go up) is a good thing. Meanwhile, the C fund is easily and cheaply duplicated outside the TSP. So maybe my "fixed" or "safe" investments should be primarily in the TSP, and my more volatile large-cap index investing should be primarily outside the TSP.
Idk who needs to hear this but you need to get out of the L funds. They're too conservative and will kill any hope of building wealth.
50%C/50%S let's go.
Im using the 120 Rule. Subtracting my age (58) from 120 and putting that into the C fund (62%) and putting the balance 38% in the G fund (Supposed to be F fund) but the F has been negative the past 5 years, so im going G since its never negative
So what is the change for 2023? I understand they the funds get more conservative the closer to retirement you get. So I think I missed what your point was for the 2023 L funds?