- This topic has 3 replies, 2 voices, and was last updated 4 years, 3 months ago by Ben.
January 27, 2016 at 7:43 am #18088BenGuest
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.
-BenJanuary 27, 2016 at 5:56 pm #18091MorganGuest
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.January 27, 2016 at 6:49 pm #18092AnneParticipant
Currently the L-2050 is allocated as follows
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.February 1, 2016 at 8:35 am #18106BenGuest
Thank you for your input!
I’ve changed my allocations to what TSP Paul has recommended!
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