Which L Fund Represents Your Situation?

[Intrepid_Timer]

I'm posting this poll to get an idea of which Lifecycle Fund represents the majority of the TSPtalk community.

[2moryrs]

I voted!

2

[Steel_Magnolia]

Good poll. I'll be interested in seeing the results.

[ozzyman]

if i was in L funds i would be in 2040.... only 28 so got a ways to go

[Intrepid_Timer]

The poll is pretty even across the board right now. Let's get some more input please................:)

[Frixxxx]

Right on the 2025 line......

Performance sucks, 2.54% over 5 years?

Yet mine is 14.3% over 5 years...


NEVER USE L FUNDS!

[Boghie]

The TSP bubbas would have me in the L2030 Fund...
So, I would be right about where I'm at...

But, I have had so much fun churning my account this year. That has to be worth something, eh.

[crws]

Right on the 2025 line......

Performance sucks, 2.54% over 5 years?

Yet mine is 14.3% over 5 years...


NEVER USE L FUNDS!

same situation, I'm right on the 2025 line.
It would be interesting to have one of those L funds as a precious metals blend or perhaps a commodities futures mix.

[Silverbird]

I'm also on the 2024/25 line. Is this a trend?
:D

[Frixxxx]

The 2025 line for me is 57 years 8 months. MRA!

:laugh:I refuse to stay longer on the grounds that I will KILL MYSELF!:laugh:

[crws]

The 2025 line for me is 57 years 8 months. MRA!

:laugh:I refuse to stay longer on the grounds that I will KILL MYSELF!:laugh:

Ohhhh Noooo
Don't do it, Mr. Bill !!
http://1.bp.blogspot.com/_nSETmGtKZsU/Rqa-KHDgSqI/AAAAAAAABEw/WtU_5vbiZuI/s400/MrBill5.jpg

[Handballer]

I notice that 2 no longer with the government but not retired.

Whats their interest in the TSP now?

[Intrepid_Timer]

I quit the government last January. You can leave your money in TSP as long you want when you leave, or until mandatory withdrawals kick in...............

[Cod]

Turning 28 in February, so I'm a 2040 kind-of-guy. In fact, I have about 50% of my contribution allocation in the L2040; however, the percentage drops as I learn more and more about the stock market and TSP specific options. I started with 100% in L2040 two years ago, and plan on it being 0% within the next year or two.

[bobgeorge]

I plan to retire around 2026, so I am in L2030.

[nnuut]

None! :suspicious:

[Qoheleth]

Well I selected the after 2035 option even though my actual retirement year will likely be 2046 which is why I am in the 2050 fund...which wasn't an option!

[Globalpack]

I've been in the 2030 L-Fund since its inception.

18.37% rate of return during last 12 months.

[Bullitt]

2030 is almost 17 years away. What you want is for lower prices today and higher prices in 15 years from now.

For many on this MB, it matters what their 12 month return is because they are retiring in less than 3 years. Those of us with longer time frames need to hope for lower prices for the next 10 years or so.

When picking an L fund, returns shouldn't make a difference. Fees and asset allocation should. I can tell you right now TSP has the lowest fees in the business.

[dannyboy]

I'm posting this poll to get an idea of which Lifecycle Fund represents the majority of the TSPtalk community.

L2040? If I didn't want to bother with it.

[Intrepid_Timer]

I've been in the 2030 L-Fund since its inception.

18.37% rate of return during last 12 months.

14.82% since it's inception in August of 2005? Well, at least you've doubled the G fund.................;)

[Globalpack]

Earning 5-6-7-8+% every year over 17 years earns more overall than bargain lower share prices followed by higher price shares 15 years from now.

[Intrepid_Timer]

Earning 5-6-7-8+% every year over 17 years earns more overall than bargain lower share prices followed by higher price shares 15 years from now.

I don't understand your reasoning, but if works for you, cool. BTW, your 12-month return has been cut in half, as of last Friday, and the return of the L2030 since it's inception on 08/01/05 is down to 3.81%, which is worse than parking in the G fund. Just because one's balance is higher than it was seven years ago, doesn't mean they are making any money and I don't know anyone who really wants to make 0.50%, on average, every year. Good luck though! I'm sure any year now the S&P 500 will go back to averaging a 10% return every year. Keep the faith......

[Globalpack]

I don't understand your reasoning, but if works for you, cool. BTW, your 12-month return has been cut in half, as of last Friday, and the return of the L2030 since it's inception on 08/01/05 is down to 3.81%, which is worse than parking in the G fund. Just because one's balance is higher than it was seven years ago, doesn't mean they are making any money and I don't know anyone who really wants to make 0.50%, on average, every year. Good luck though! I'm sure any year now the S&P 500 will go back to averaging a 10% return every year. Keep the faith......

I was replying to Bullitt's comment where he said ""2030 is almost 17 years away. What you want is for lower prices today and higher prices in 15 years from now."" If share prices fall yes keep buying but my argument is it's PREFERRED for share prices to steadily increase to benefit from compound interest. For example if you start with $100 and, over the course of a year, you earn a 5% rate of return, at the end of the first year, you'll have $105. If you leave that money alone, and the next year you also earn a 5% rate of return, you'll have $110.25 at the end of year two. So, in the second year, you earned 5% on your original $100 contribution and another 5% on the $5 you earned during the first year. At this rate your original investment is doubled in less than 15 years.

[Intrepid_Timer]

I was replying to Bullitt's comment where he said ""2030 is almost 17 years away. What you want is for lower prices today and higher prices in 15 years from now."" If share prices fall yes keep buying but my argument is it's PREFERRED for share prices to steadily increase to benefit from compound interest. For example if you start with $100 and, over the course of a year, you earn a 5% rate of return, at the end of the first year, you'll have $105. If you leave that money alone, and the next year you also earn a 5% rate of return, you'll have $110.25 at the end of year two. So, in the second year, you earned 5% on your original $100 contribution and another 5% on the $5 you earned during the first year. At this rate your original investment is doubled in less than 15 years.

Gotcha. 15 years is long time to wait to double one's money though. Plus, one bad year could easily wipe out 5 years of investing. That's what us traders are hoping to avoid. ;)