The Disappearing L2010 Thrift Savings Plan Fund

By on April 27, 2010 in Current Events with 0 Comments

On July 1, 2010, all the money in the L 2010 fund will disappear. In fact, the entire L 2010 fund will disappear as well.

On that date the fund mixtures in the L 2010 fund will mirror those in the L Income fund and the two funds will become one.

When it was introduced (along with the other L funds) in August of 2005, the L 2010 fund had an allocation that was as follows:

 

In July of 2010, the allocation will be as follows:

 

The TSP will introduce a new fund, L 2050, around the time that the L 2010 fund merges into the L Income fund.

All of the L funds (except L Income) gradually adjust to a more conservative allocation. Adjustments are made every calendar quarter. Ultimately, all funds turn into the L Income fund. For example in July 2020, the L 2020 fund will disappear and the L 2060 fund will be introduced.

The TSP introduced the L funds as a way for TSP account holders to have a diversified portfolio that gradually adjusted as the account holder got closer to the date he or she would need the money. They bill the funds as "putting your investments on cruise control". More information on the L funds can be found at http://www.tsp.gov.

John Grobe’s latest book, The Answer Book on Your Federal Employee Benefits, has just been released by LRP Publications. The book is written in an easy to understand question and answer format and covers all areas of federal benefits from the perspective of an employee at various stages of their career. Order your copy at shoplrp.com.

© 2016 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

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About the Author

John Grobe is President of Federal Career Experts, a consulting firm that specializes in federal retirement and career transition issues. He is also affiliated with TSP Safety Net. John retired from federal service after 25 years of progressively more responsible human resources positions. He is the author of Understanding the Federal Retirement Systems and Career Transition: A Guide for Federal Employees, both published by the Federal Management Institute. Federal Career Experts provides pre-retirement seminars for a wide variety of federal agencies.

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