L FUNDS REFERENCE ONLY

[swsop]

Hi all,

A friend of my sent me this e-mail stating that some DOD workers where they work at are trading these fund just like we trade the regular funds on a day to day or not basic is this feasible?

If The L Funds Look Like This.

L = G

L 2010 = F

L 2020 = C

L 2030 = S

L 2040 = I

swsop

[smine]

Confusing or I am not understanding. Still a majority of C fund which is what I didn't go for with the L funds. Of course, I'm 75% C now!

[swsop]

Confusing or I am not understanding. Still a majority of C fund which is what I didn't go for with the L funds. Of course, I'm 75% C now.

Shine,

Believe it or not it's confusing too me also. Don't understand the concept either. Just wish full thinking on their part I gest.

swsop

[mlk_man]

I don't understand it either. This is not what these funds are meant to do. I can see TSP not allowing them to be traded daily if a lot people start doing this. Not sure why one would want to......................

M_M

[saturneptune]

MM,
There is a person I work with who has 10% in each fund, the 5 L funds and the 5 regular funds. To me, this seems to defeat the purpose of the L funds whether you like them or not. It seems that they are designed to stay in one of the funds depending on your tolerence. Do you agree?

[mlk_man]

Absolutely!!

[cowboy]

MM,
There is a person I work with who has 10% in each fund, the 5 L funds and the 5 regular funds. To me, this seems to defeat the purpose of the L funds whether you like them or not. It seems that they are designed to stay in one of the funds depending on your tolerence. Do you agree?

Nope not at all! The L funds can be traded just like any other fund as you see happening. They provide a lower risk but with each taking on a more risky position as they are further from retirment. So if trend is up move to higher risk funds and down go to lower risk fund. Forget about G fund it is now a loser. The buy and hold strategy is a good one but with the internet if you learn to manage your money correctly I believe it will pay off at retirement. You are correct that they were designed for tolerence but with technology of the internet the L funds are already obsolete. The main purpose of the L funds was to draw out the G-fund investor, I believe, but it is hard to get an old dog to learn new tricks.

[mlk_man]

Thanks M_M!

Do believe your wrong though. Each L fund is already designed to be allocated in each fund based on years to retirement. No point in allocating a little to each fund. Defeats the purpose. Now if you are saying move from one fund to another as the market goes up or down, then I'd say sure thing! Someone could conceivably move to a more high risk L fund as the market is going up and to a lower risk fund as the market is going down.

Perhaps just follow the 20-day moving average?

[cowboy]

You practicing to be a politician MM? You say I am wrong but agree with my post on the fact of moving from one to the other may be beneficial. I too agree to put into each L fund to diversify is not really necessary unless you don't want to manage at all but if your happy with that strategy go for it. The L funds would have been great 20 years ago and will be okay for those with low risk tollerance and is still a tool. Better than nothing is my guess.