Good news for TSP participants!
Starting July 1, 2020, TSP will have ten Lifecycle (L) Funds to choose from instead of the five currently available. The addition of the new L Funds will create target dates separated by only five years instead of ten, allowing you to more precisely target the time when you think you’ll need your retirement money. Six new L Funds will be added (L 2025, L 2035, L 2045, L 2055, L 2060, L 2065), and the L 2020 Fund, having reached its target date, will be rolled into the L Income Fund.
This change brings the world’s largest employer-sponsored retirement savings plan in line with offerings made through plans at other major US employers. The L Funds, professionally managed by the BlackRock Institutional Trust Company, compare more than favorably to target-date retirement funds offered by other large investment companies. Low expense ratios, use of the industry’s standard index benchmarks, and straight forward investment options make TSP the envy of employees everywhere.
See the fact sheet Additional Lifecycle (L) Funds for more information.
Check out the new blog on the MFAA website that explains more about the TSP Lifecycle Funds.
And if you would like to see a TSP Lifecycle Fund in action, click HERE and then hit the “>>” button below the graphic to see what happens to your money as you near your target-date retirement year.
If you want to know more about how all of this can positively impact your retirement savings goals, schedule a free call with me here.