Lifecycle Funds

This topic contains 3 replies, has 2 voices, and was last updated by  Ben 3 years, 3 months ago.

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  • #18088

    Ben

    Hello,

    I was just wondering what your thoughts were on the lifecycle funds that TSP has.

    Personally, as of right now, I’m vested 100% into the L-2050 fund as it will be a while before I can retire (I’m 24 years old now with about 5 years in).

    Looking at your recommended contributions, I was wondering how that differs from the lifecycle funds. Is it more reserved than the lifecycle? Would it be a good idea to change?

    Any input is appreciated, I’m just curious.

    Thanks!

    -Ben

    #18091

    Morgan

    If you want to set it and not touch it or look at it again until you retire its pretty good.

    Otherwise I’m not a big fan of it. The G and F fund combined make up 15.5% of the fund which I think for a person that is 24 is too conservative, my own portfolio currently has 10% in bonds. I’d recommend you set your own allocation to closer to what TSP Paul is recommending.

    #18092

    Anne
    Participant

    Currently the L-2050 is allocated as follows
    G 12.4%
    F 3.1%
    C 44.37%
    S 14.78%
    I 25.35%
    I agree with Morgan in that I’m not a big fan of the L funds. It really depends on your risk tolerance and what you are comfortable with. Since I’m closer to retirement, I am a little more risk adverse and a little more pessimistic on our current economic outlook but I do think that you should be primarily in stock at your age. 25% in I is a little riskier, 15% in G
    & F is less risky. If we go into a bear market or recession, all stock funds are risky.

    #18106

    Ben

    Thank you for your input!

    I’ve changed my allocations to what TSP Paul has recommended!

    Thanks again,

    Ben

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