New and SO Lost!

Hello All!

I’ve been lurking around here for awhile, but I feel like I need to jump out and say hello...and beg for some help! My husband has worked for the government for a little over 2 years and we’ve been blindly contributing to the tsp without any knowledge of how it really works. I noticed last week that we are 100% invested in the L2040 fund. The performance seems a little lackluster to me, but I am by no means a money person. We are in our late 30’s and plan to contribute 15% a month starting next month. I just want to be sure we’re putting the money in the right place to grow to our advantage. We have been contributing to the Roth 100% and only letting the company match money go into the traditional TSP. I feel very overwhelmed with all this and would love some advice or reassurance that the money being 100% invested in the L2040 is the right choice, and that at our age, only using the Roth option is a good idea. Thank you!

Welcome TexasMom! Most of us here don't use the L-funds, but for a "set it and forget it" type of investor, they are fine.

There are now five L-funds that are more aggressive than the 2040, and for someone in their 30's, they may be a better fit.

https://www.tsp.gov/funds-lifecycle/

The 2040 has about 67% of its assets in stock funds. Comparing that to the 2065, the most aggressive, which has 99% in stocks. As you get older these funds will decrease their exposure to the stock funds so they get more defensive as you age.

So, at your age, I think you may want to get somewhere in between 2040 and 2065, or even closer to 2065 to be more aggressive now, and allow that to decrease aggression (autmatically) as you get older.

Thanks for joining us!

Thank you SO much for the advice and direction. I am going to review the funds and hopefully make some changes that will benefit us more in the future. Hopefully I won’t feel so overwhelmed this time around. 🤞🏻

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Originally Posted by TexasMom3

Thank you SO much for the advice and direction. I am going to review the funds and hopefully make some changes that will benefit us more in the future. Hopefully I won’t feel so overwhelmed this time around. 爛

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TexasMom3,
This is a great place to learn. Lot's of information. Some of it buried in other threads. Look around and find areas that look interesting. Don't be afraid to ask questions. Lot's of members always looking to help.

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Originally Posted by TexasMom3

I noticed last week that we are 100% invested in the L2040 fund. The performance seems a little lackluster to me.

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Don't change a thing unless you think your husband will be retiring at a later date. It will take years until you start to move the needle in a 401k. The ones who say they are TSP millionaires don't mention that most have been contributing for over 30 years. $1M in 30 years is not that difficult, but it will take years of saving.