New Lifecycle Funds Added to TSP on July 1st
Starting Wednesday, July 1st, five new lifecycle funds will be available within the Thrift Savings Plan (TSP).
These new funds will be in addition to the five L Funds that are currently available.
The target dates on the funds will be separated by five years instead of ten like they are now.
The TSP currently has:
L Income Fund
Starting July 1, these additional funds will be added:
Simultaneously, the L 2020 funds will go away.
Anyone who is currently enrolled or invested in the L 2020 fund will have their investment automatically transferred into the L Income Fund.
The L fund options were started back in 2005.
The purpose of these funds was to make it easier for participants to match their risk tolerance and investments with their desired retirement time frame.
Each fund is comprised of the five core funds (G, F, C, S and I) and automatically adjust as someone gets closer to their target retirement date.
Funds that have retirement dates further out into the future take more risk, and seek greater rewards.
As target dates & retirement nears, the funds shift towards more conservative investments.
Also, with the addition of the L 2060 and L 2065 funds, younger federal workforce employees are given options that are more in-line with many of their expected retirement dates.
Just a reminder, you can always make interfund transfers and the L fund you choose doesn’t have to correspond to the date you retire.
Here’s a link to a Fact Sheet you can find on TSP’s website that gives additional information about these changes.
If you have any questions about your TSP and other federal benefits, our specialists are always standing by to help.
-Your Friends at GPIS.
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