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Thread: L2050 Fund

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    Default L2050 Fund

    Just when you thought it was safe....a whole decade has passed us by!

    https://www.tsp.gov/PDF/formspubs/high10d.pdf

    For you High risk, B&H crowd!
    It's Frixxxx -- 4 X's - It's my nickname changed because I use to do FOREX. - Get it?
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    Default Re: L2050 Fund

    The question I can't resolve for myself is how it is being offered at such a low share price of $10 when the other L funds are up over $14 and the 2040 is over $17? Is it foolish to think that the 2050 should be valued closer to the 2040 share price? What gives here?

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    Default Re: L2050 Fund

    Thank you Steelhead for posting your question. I am interested in any thoughts on this matter as well. Another question for the population, how long do you thonk it will be before the L2050 hits the current range of the L2040?

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    Default Re: L2050 Fund

    Quote Originally Posted by Steelhead View Post
    The question I can't resolve for myself is how it is being offered at such a low share price of $10 when the other L funds are up over $14 and the 2040 is over $17? Is it foolish to think that the 2050 should be valued closer to the 2040 share price? What gives here?
    The share price has nothing to do with the other L funds- it simply is an artificial starting point in value. The underlying funds (stocks of the C, S, I funds, plus bonds from F fund, and government securities of the "G" fund) are simply packaged into various ratios to form the L2050 upon start up.

    Once there are actual investments in it, then the movement of the various stocks affect the value of the L2050.

    There is NO RELATIONSHIP between the L2050, and the L2040, or L2020 for that matter.

    If the underlying stocks/bonds/government securities double in value over the next ten years, the L2050 will be valued at $20 a share.

    The $10 is simply a starting point for initial purchase on the very first day it will be available.

    Does that make sense?

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    Default Re: L2050 Fund

    Quote Originally Posted by Lost-in-Maine View Post
    Thank you Steelhead for posting your question. I am interested in any thoughts on this matter as well. Another question for the population, how long do you thonk it will be before the L2050 hits the current range of the L2040?
    The L funds were introduced in August of 2005, at a price of $10 a share for all L funds.

    The current price of the L2040 is slightly over $17 a share.

    If your question is "When will the L2050 reach $17 a share", the answer is, based on pas history, somewhere between five and eight years into the future, unless market conditions screw it up, which is always possible.


    If your question is "When will the L2050 PASS the L2040 in value?" That's a different question, and much harder to answer. With a $7 a share head start, it may be 20 years before the L2050 passes the L2040.

    But then again, maybe not. It all depends on what the markets do going forward.

    By the way- "G" fund is now setting new record lows for return. Last month is was 0.17%, or an annual rate of just 2.04%. That is very, very poor compared to historic returns on the "G".

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    Default Re: L2050 Fund

    Did I miss an announcement about L2050 or is this a theoretical concept?

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    Default Re: L2050 Fund

    Quote Originally Posted by crws View Post
    Did I miss an announcement about L2050 or is this a theoretical concept?
    You missed it -

    https://www.tsp.gov/PDF/formspubs/high10d.pdf
    It's Frixxxx -- 4 X's - It's my nickname changed because I use to do FOREX. - Get it?
    Tracker = 40%-C 60%-S::::Real World = 100%-G

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    Default Re: L2050 Fund

    ahhhhso'
    Thanks!

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    Default Re: L2050 Fund

    Thanks guys it makes sense (or even cents) to me now too bad it isn't making more dollars instead. I was picturing it as an undervalued stock rather than as you've described. My CFA girlfriend couldn't clarify it for me as much as you did but maybe that's because I only hear half of what she says.


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    Default Re: L2050 Fund

    I plan on buying the shares when it comes out in Jan.
    Question is how much value of the $10 is spilit among the other funds?
    Does it buy shares from the other funds? and say if we don't want to invest in the Bonds, could we buy shares or better yet say put a % in the other funds that mimic the L fund?
    Last edited by nguyensv; 12-29-2010 at 10:09 AM.

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    Default Re: L2050 Fund

    Quote Originally Posted by nguyensv View Post
    I plan on buying the shares when it comes out in Jan.
    Question is how much value of the $10 is spilit among the other funds?
    Does it buy shares from the other funds? and say if we don't want to invest in the Bonds, could we buy shares or better yet say put a % in the other funds that mimic the L fund?

    Edit*** found it by more lurking

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    Default Re: L2050 Fund

    You'll be wasting your time with the L2050. Just put your money on the C fund and take a long walk.

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