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mlk_man
07-19-2005, 08:23 AM
Federal Retirement Thrift Investment Board Announces Roll-Out Of Lifecycle Funds
7/19/2005

Retirement Thrift Savings Plan will have another investment option known as Lifecycle Funds – so named because the funds are structured to a participant’s target time horizon. The target horizon is the time when the participant intends to withdraw the funds – as the withdrawal date approaches, the lifecycle fund’s investment mix automatically becomes more conservative.

Consequently, participants who select lifecycle funds do not need to reallocate their account assets to achieve this result – the lifecycle investment models automatically reallocate the accounts for the participants.

The Federal Retirement Thrift Investment Board announced during its regular monthly meeting Monday that the TSP Lifecycle Funds will be made available to Plan participants beginning Aug. 1, 2005. The meeting also included readiness reports from Executive Director Gary A. Amelio and the agency’s senior staff.

Amelio and Pamela-Jeanne Moran, the agency’s director of benefits services, described the extensive communications effort that will be launched in connection with the roll-out of the new “L” Funds. Amelio compared this comprehensive approach to “the best of the best” that he saw during a private sector career spanning 23 years.

According to Amelio, the roll-out has begun with new lifecycle fund information on the TSP web site (http://www.tsp.gov/). This will include the July edition of the newsletter TSP Highlights (http://www.tsp.gov/forms/high05c.pdf) with a feature story entitled “L Funds Offer a New Approach” as well as the L Funds Information Sheet (http://www.tsp.gov/rates/fundsheet-lfunds.pdf) that provides more technical details about the funds.

A “teaser” post card is being mailed to all Plan participants, inviting them to consider putting their TSP investments on “cruise control.” The post card will also notify participants to “watch for future mailings.” This is because after Aug. 1, the date when the full complement of TSP lifecycle fund materials will be placed on the web site, a specially-made DVD will be mailed to all participants.

“Proper asset allocation is critical to optimum long-term growth in retirement savings. Whether participants have it done automatically for them by using the L Funds, or do it themselves, this DVD will help them understand this important concept,” Amelio said.

TSP participants now have four broadly diversified stock and bond funds, as well as a Government Securities (G) Fund, in which to invest their retirement savings. Taken together, the Common Stock Index Investment (C) Fund, the Small Capitalization Index Investment (S) Fund, the International Stock Index Investment (I) Fund, the Fixed Income Index Investment (F) Fund, and the G Fund cover “all the major food groups at an exceptionally low cost to participants” Amelio said. “The new L Funds will automatically allocate assets among the five underlying funds at no additional cost to TSP participants. This is a wonderful opportunity for participants to receive the benefit of professionally determined asset allocations with virtually no ongoing effort on their part and at no charge.”

The TSP is a retirement savings plan for federal employees; it is similar to the 401(k) plans offered by many private employers. As of June 30, 2005, TSP assets totaled more than $159 billion, and retirement savings accounts were being maintained for more than 3.4 million TSP participants. Participants include federal civilian employees in all branches of government, employees of the U.S. Postal Service, and members of the uniformed services.

garnertr
07-19-2005, 08:51 AM
Fr: Military.com


TSP to Roll out New Funds in 2 Weeks (javascript:open_window('http://www.govexec.com/dailyfed/0705/071805r1.htm','news',700,400,'TR',0,5,0,'resizable =yes,scrollbars'))
GovExec.com | July 19, 2005
Participants in the Thrift Savings Plan can allocate money to new "life cycle" funds starting Aug. 1, the TSP Board announced Monday. The TSP, which is a 401(k) like system for federal workers, currently has five investment funds. This sixth set of funds will allot resources among the five already existing options: government securities, fixed income securities, common stocks, international stocks, and small and mid size companies. The concept behind the new funds is to automatically shift investors' money from a mix of riskier to more conservative investments as participants age, according to TSP literature. More (javascript:open_window('http://www.govexec.com/dailyfed/0705/071805r1.htm','news',700,400,'TR',0,5,0,'resizable =yes,scrollbars'))

Birchtree
07-19-2005, 09:35 AM
Yes, I'm going to love you as much in the morning as I do tonight.

That check went in the mail yesterday.

I'm from the government and I'm here to help you.

Most folks seem to get more conservative as they get older - and now the L funds will help in that mistaken endeavor. When you reach the point of having POWER in your account - use it to your benefit - make it really grow by using 100% leverage. These are just my thoughts - I tend to be radical when it comes to making money.

Dennis

Dave M
07-25-2005, 11:44 AM
BT, the pie charts showing the L-fund percentages helped me in my decision to increase my holdings. My G was too high, more nearly equal to the "income" chart. I fall into the 2010 category, so I have reduced my G to 40%.My risk tolerance is about twostandard deviations from the mean, so this is not easy for me.

Dave

yakers
09-29-2005, 07:01 PM
Birchtree wrote:
Yes, I'm going to love you as much in the morning as I do tonight.

That check went in the mail yesterday.

I'm from the government and I'm here to help you.

Most folks seem to get more conservative as they get older - and now the L funds will help in that mistaken endeavor. When you reach the point of having POWER in your account - use it to your benefit - make it really grow by using 100% leverage. These are just my thoughts - I tend to be radical when it comes to making money.

Dennis


Man I love this Birtchtree guy. Couldn't be more different than me. I don't use leverage, don't borrow money ('Neither a borrower or a lender be...') paid off my mortgage, owe nothing. And it works for me. So its amazing for me to see a completely different approach. A former brother in law mortgaged his house to buy commodities with leverage. He was lucky to break even, I would have had a heart attack. I like analyzing financial issues (I love The Economist, subscriber for 27 years now) and I will make financial move when I feel enough confidence but these guys who move assets around like tossing a pizza amaze me. A friend of mine was a successful day trader for a couple years (now he doesn't talk about it). Anyway the more I follow these issues the more I come to believe most people should be in an L Fund. But there are these guys who can multitask, be contrarian, analytic ...oh what the hell, probably lucky (not a complaint, I regard luck highly) who jump into things.
I watch, if it looks good I'll be in too, so far I'm not convinced.

Birchtree
09-29-2005, 08:33 PM
Yakers,

Watching can be fun until you realize there is no money in it. If you want to make green you have to be proactive. When I say 100% leverage I actually mean all the money on one fund - no playing around. It has taken me years to build a POWER account and now that I have one, it is time to rock'roll. When and if the C fund makes a move to $17.00 I'm looking conservatively at over $30,000 a point. In the meantime I'll continue to dollar cost average at these nice low prices and just grow larger until the day arrives. Patience is virtuous. Take care.

Dennis