Thrift Savings Plan Adds Funds

The Thrift Savings Plan (TSP) launched five new funds this month that will balance risk according to the anticipated decade of a contributor’s retirement, with risk dropping as the retirement window draws nearer. The funds, called “Lifecycle” funds, are composed of various mixes of the TSP’s five core funds. The core funds are the G Fund (the least risky), which invests in government securities; the F Fund, with a fixed-income index portfolio; the C Fund, which invests in common stocks; the S Fund, which invests in small-cap stocks; and the I Fund with an international portfolio. The new L-2040 is for individuals retiring in 2035 or later. L-2030 applies to those retiring between 2025 and 2034. L-2020 is for those retiring between 2015 and 2024, and L-2010 for those retiring between 2008 and 2014. L-Income, which carries the least risk, is for those retiring before 2008 or currently receiving retirement income.