L Funds???

**ChemEng** · 08-01-2005, 02:14 PM

I got some informationthis weekend about the new L fund variants that are being offered by the TSP. The literature says that the L funds are just a composite of the 5 funds with allocations based on the horizon you choose. So that begs the question if its worth jumping on the L fund at all? Am I missing something? Is anyone planning on using this feature?

**Birchtree** · 08-01-2005, 11:34 PM

Only if I were deff, dumb and blind.

**tsptalk** · 08-01-2005, 11:44 PM

It's probably a good idea for the majority of TSP participants but I would think that most people here (on TSP Talk) like to manage their own account. Even if for some reason I wasn'table tobeat the personalized L fund return for the long term I'd feel better knowing I was in control.

If you are in one of theaggressive L fund allocations like L2040, you'd be heavy in stocks whether you were in a bull or bear market. The misconception might be that they manage it for you in that way (i.e.: gettingyou out of stocks during bears markets and in stocks during bull markets)but all it is is a diversification based on when you need the money. Like I said though, it is probably the best way for many participants for the long term but I hope people understand that.