FedSmith Readers Plan to Take Advantage of the New L Funds

By on July 15, 2020 11:38 AM in Pay & Benefits with 0 Comments
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Timeline showing the L Fund options: L 2025, L 2030, L 2035, L 2040, L 2045, L 2050, L 2055, L 2060, L 2065

A majority of FedSmith readers told us in our latest survey that they are planning to purchase the new L Funds inside of their Thrift Savings Plan accounts.

Out of almost 800 respondents to our recent survey, 64% said they plan to utilize the new L Funds and 62% of respondents currently invest in the L Funds now.

However, despite the stated intent to purchase one of the new L Funds, a slight majority of respondents said that they were neutral on the addition of the new L Funds. 54% said “neither” in response to the question, “Does the addition of the new L Funds make you more or less inclined to invest in an L Fund?” 43%, however, said they were more inclined to invest in one now they they are available.

Respondent Profiles

92% of respondents invest in the Thrift Savings Plan currently. Of those respondents, their current account balances in the TSP break down as follows:

  • 18% have balances under $100,000
  • 51% have balances between $100,000 and $500,000
  • 24% have balances between $500,000 and $1,000,000
  • 6% have balances over $1,000,000

The TSP recently published their latest quarterly statistics on the number of millionaires in TSP. As of the end of June, there are 45,219 millionaires. That is approximately .78% of all TSP participants.

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

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About the Author

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.

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