Smart investment choices do the work for you

Like most people, you probably have a long list of to-dos. Is “Become an expert on investing and personal finance” on there? Financial planning is a skill that takes years of experience to acquire, yet you still have to make decisions about money early on that can affect your finances for decades.

Fortunately, your access to TSP funds means access to options to make that to-do list a little easier to get through.

Let’s face it: planning for retirement can be a chore

Think about some essential chores on your list, like changing the batteries in your smoke detectors. Infrequent and out of sight, it’s easy to forget about, but the consequences could be big if you do. It’s easy to lose track of managing your long-term investments too. And keeping up with those to-dos isn’t as simple as swapping out batteries. Consider this solution: a TSP Lifecycle (L) Fund.

An L Fund does this chore for you every day

L Funds balance the potential for higher returns associated with investing in the stock markets with the need to safeguard your savings for retirement.

The best part is that an L Fund automatically does all the work to maintain that balance between returns and risk for you.

Each L Fund is a diversified mix of stocks and securities in our five core funds (G, F, C, S, and I). At the end of each trading day, we rebalance the target mix of core funds by buying low and selling high. And every three months, we adjust the mix of core funds in your L Fund to become a little more conservative and preserve more of your earnings as you get closer to needing them.

All that, and you don’t even have to lift a finger.

Video: Your TSP Investment Options: The Lifecycle Funds

L Funds for life

Recently, we added more L Funds with target dates separated by only five years. That makes it easier for you to target the time when you think you’ll need your money. By choosing an L Fund, you can be confident that you’ve made a smart decision for your long-term TSP investments.

L Funds give you value far beyond a shorter to-do list

• You take advantage of the same low fees that our five core funds carry. This can add up to $1,000s more in your savings when compared to funds with higher fees.
• Automatic daily rebalancing means you take full advantage of investing in index funds such as our C, S, and I Funds. Index funds that follow a broad collection of individual stocks consistently earn higher returns over a long timeline when compared to mutual funds with managers that pick stocks and attempt to time the markets.
• You join more than 2 million other TSP participants who invest in an L Fund.
• You have flexible withdrawal options when you need your money.
  

And you always retain control of your TSP investments

As you move through life and continue gaining expertise in your finances, you may want to make your own adjustments. You could choose to transfer money into the TSP from an eligible account, or you might choose a different mix of funds as your finances evolve. 

You’ve already made smart choices

It’s never too early or too late to make a good decision about money.

You’ve already made a smart choice by investing your savings with the TSP. Why not take a moment to make sure that you’re maximizing the potential of your TSP investments too?

The fine print: Investments carry risks. For more in-depth planning, you may want to consult a qualified financial advisor.