Readers' Comments
Total Comments: 10
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Page 1 of 1
TSP Trends: Fund Returns Up, Fund Transfers Down, More L Fund Investors
Total Comments: 10
Page 1 of 1
Page 1 of 1
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| Close | Change | YTD | |
| G | $12.6985 | +0.0013 | +3.41% |
| F | $11.9771 | +0.0022 | +0.39% |
| C | $9.2069 | +0.5468 | -44.40% |
| S | $9.9674 | +0.5424 | -49.63% |
| I | $12.1847 | +0.7026 | -50.79% |
| Close | Change | YTD | |
| L 2040 | $10.9552 | +0.5238 | -39.94% |
| L 2030 | $11.2418 | +0.4750 | -35.43% |
| L 2020 | $11.6629 | +0.4168 | -29.95% |
| L 2010 | $13.1223 | +0.2434 | -15.12% |
| L Income | $12.3256 | +0.1516 | -8.50% |
November 23, 2008
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Pulling Out
HUD
Tue May 20, 2008 10:58 AM
Post Reply
When the May investment figures come in I suspect you'll see two trends: (a) pulling their money out of the TSP investments to some degree, and (b) little movement across funds.
Since investors can no longer strategically invest their money, many will pull some out to other IRA type plans where they can invest for a fee. Too bad the TSP didn't recognize the profit they could have made by allowing more than 2 trades a month for a fee! The power of a few determining the will of all, just don't cut it to me.
Re: Pulling Out
DoC
Wed May 21, 2008 12:46 AM
Re: Pulling Out
USACE
Wed May 21, 2008 10:13 AM
No kidding
USACE
Tue May 20, 2008 4:32 PM
Post Reply
The L fund participants are up for two reasons:
1. it is now the default fund for new hires (as opposed to the G fund).
2. we no longer can rebalance our accounts as we see fit, so some of the TSP investors probably figure that the L funds may give a better return since they can be rebalanced more than once a month.
raw statistics
navair
Wed May 21, 2008 10:58 AM
Post Reply
Citing raw numbers with no context is meaningless and leads me to suspect intentional skewing of the report. Just because the numbers participating in the L funds has increased tells me nothing about the real growth in participation in the funds (if any). There may very well be, but the numbers given don't support the conclusion. With out the numbers indicating total TSP participation and total dollars invested in the funds (before and after for each) it is impossible to evaluate the numbers quoted.
The TSP board needs to get off of it's one-size-fits-all mentality. None of the L funds fit my investment needs, requiring me to manually adjust my investment balance a few times a year. For those of us who have done actual number crunching (I have and use a budget and keep it up to date) and have an estimate of what they will require and what their resources will be at retirement should be able to set their own fund investment ratios and get the same benefits of daily balancng.
Diversification vs L funds...is it either/or?
Dept of Veterans Affairs
Wed May 21, 2008 11:45 AM
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I recently saw somewhere, the statement that if you are in the L funds, you should only be in one, and you should not continue to also be in the G,F,C,S or I funds. Can you do an article on why this is so? I've always heard that diversification is the best approach...so I don't understand why puttting all my eggs in one basket is now the way to go, even though they are diversifying my money. I still like the I fund more that the L funds seem to and I also like to keep some in F and S.....what do I gain by putting everything in L2010....or any one specific L fund? I'd really like to understand this thinking, or find out that it is faulty and diversification amoung L funds and other funds is still a good plan.
Re: Diversification vs L funds...is it either/or?
dod
Thu May 22, 2008 5:52 PM
It's not the way to go now. Diversification refers to different asset classes(large cap, small cap, international, bonds, cash etc.) regardless of how many or few funds are needed to invest in those asset classes.
Each L fund invests in all these asset classes, therefore is diversified among all asset classes offered by the TSP. If you invest in the C,S,I,F or G along with an L fund you aren't gaining any diversification, your duplicating what you already have in the L fund.
The advantage of using an L fund is that it gives you diversification among all TSP asset classes with the allocation determined by a scientific method based on years to retirement. If you invest in an L fund and also in the others you're throwing off the allocation and therefore defeating the purpose of the L fund.
Re: Diversification vs L funds...is it either/or?
DoD
Tue May 27, 2008 11:36 AM
L funds and time horizon funds are already balanced and diversified funds - based on generalized time horizons. Don't get confused in that it's 1 fund and putting $$ into it is not diversification. L2040 for instance has C Fund (top 500 market cap companies in US), S Fund (the next 4500 market cap companies), the I Fund (which has about 1,100 international stocks from over 20 non-US countries), the G fund - Gov Securities and the F fund - corporate bonds. Other than having real estate in the mix - you've got everything covered.
I agree with others on here where none of the L funds match what I want. I'm in my mid 30s and I would prefer something a little more aggressive than the 2040 so when the 2050 comes out in 2 yrs...I'll put my money into that and then let it go. There is another way to do that earlier. Say you want more exposure to I fund or S fund than the 2040 allows - put say 80% in 2040 then 10% in S and 10% in I. That gives you more S and I than 2040 alone
TSP Options
Dept of Veterans Affairs
Sat Jul 26, 2008 1:58 AM
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Although I keep up with what's happening with the TSP funds, I've discovered that most federal employees that I know have no idea what the various options are or mean when asked about their retirement plan.
For example I asked a neighbor and friend of mine what does the L fund mean, and he responded "I have no idea".
I think that a continous "bottom line" definition of the various funds should be available so that federal employees can at least know what the C, I, S, L .... accounts are. They could then ake an informed decision on which plans to choose during an open door season.
L funds
OWCP
Wed Jul 30, 2008 9:56 AM
Post Reply
What are L funds? How do they differ from the G, C, F, and I funds? And are they a wiser investment choice for a neophyte?