TSP to Launch L Funds August 1

The Thrift Savings Plan has set an August 1 launch date for its lifecycle (L) funds, which have been in development for many months. As previously indicated, there will be a current income fund designed for those already making withdrawals from their accounts—such as through equal monthly withdrawals—and funds with target withdrawal dates of 2010, 2020, 2030 and 2040. Each will invest the funds in the other TSP funds (at no additional administrative charge) according to a predetermined risk/reward profile; the farther away the planned withdrawal date, the more aggressive the investment mix will be. The TSP is presenting the target years as ranges moreso than specific dates—for example, it recommends that someone planning to start withdrawing money between 2015 and 2024 use the 2020 fund. Also as previously indicated, the funds will be rebalanced daily to maintain the desired mix and all but the current income fund will be adjusted slightly each quarter to become slightly more conservative as the projected withdrawal date approaches.