On July 1, the Thrift Saving Plan is adding new funds to allow better diversification of retirement savings. At that time, the L 2020 will be retired and six additional lifecycle funds will be added. Target dates are now in five-year increments instead of 10.
The new funds are called the L 2025, L 2035, L 2045, L 2055, L 2060 and L 2065.
TSP lifecycle funds include a mix of the G, F, C, S, and I funds and target a particular time horizon. The objective is to achieve a balance between risk and return and these funds shift quarterly to a more conservative allocation through the years leading up to retirement.
The Thrift Savings Plan currently has 10 investment choices. They are the G (government-backed securities), F (government and corporate bonds), C (large U.S. common stocks), S (small/medium U.S. stocks), I (international), and the lifecycle funds.
As with any investment, there are risks. The L funds carry the same risks associated with the underlying investment funds. The account balance will fluctuate over time along with the stock market.
For a free and confidential consultation with one of the financial counselors at Army Community Service, call 573.596.2078. Services are open to all individuals working on Fort Leonard Wood, including civilians, service members and their families.
(Editor’s note: Information for this article was provided by Tammy Fink and Rose Gabel, personal financial readiness specialists with ACS).