The Disappearing L2010 Thrift Savings Plan Fund

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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.

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.

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.

© 2020 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

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John Grobe is President of Federal Career Experts, a firm that provides pre-retirement training and seminars to a wide variety of federal agencies. FCE’s instructors are all retired federal retirement specialists who educate class participants on the ins and outs of federal retirement and benefits; there is never an attempt to influence participants to invest a certain way, or to purchase any financial products. John and FCE specialize in retirement for special category employees, such as law enforcement officers.

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