2020 L Fund Ending what now?

[rwampole]

I retired from DHS in 2010 and decided to stay in the L 2020. I have been taking a monthly allotment of 4% for the last year and will continue to do so. I have just been notified by TSP that the L 2020 fund is ending in June and I need to make a decision on where to move my funds. I'm sure many other retirees are running into the same dilemma. I would appreciate any other suggestions on where to move these funds.

 

[dave123]

Thanx for the info, I have some money in 2020 myself, but did not get notified. I wonder what happens if we don't move it??

To answer your question, how about a mix of L2030 and G that would come "close" to duplicating the 2020?

 

[Bullitt]

The L2020 will roll into the L-Income fund.

Depending on age, you may want more invested in stocks than that 21% or so that L-Income allocates. Unfortunately, zero interest rates really leave no other option than risk-on assets for the long term.

 

[uscfanhawaii]

What Bullitt said!
If you are retired or close to retirement, the Lifecycle Funds don’t really fit.
You should choose a % that you can live with. G and F won’t cut it. Add in more C and/or S. After all you still have 20-30 years in retirement ahead of you.

 

[evilanne]

I retired from DHS in 2010 and decided to stay in the L 2020. I have been taking a monthly allotment of 4% for the last year and will continue to do so. I have just been notified by TSP that the L 2020 fund is ending in June and I need to make a decision on where to move my funds. I'm sure many other retirees are running into the same dilemma. I would appreciate any other suggestions on where to move these funds.

How long do you think you are going to live? I wouldn't recommend any of the L-Funds, currently L-Income has 7.61% in the I fund https://www.tsp.gov/InvestmentFunds/FundOptions/fundPerformance_LIncome.html, L-2050 has 28.61% in I Fund. You can use them as a guide based on your life expectancy e.g. If you are comfortable with the current breakouts, I would put 20-25% in stock (excluding I fund) if you think you are going to live another 20-30 years I would increase the percentage of stock (excluding I fund or at least at a much smaller amount than what they have) IMHO it is better to invest in the individual funds rather than use their mix so you see what you are actually invested in and I think they have too much allocated to the I Fund. You can easily rebalance periodically. You can see on the TSP site how each fund progresses over time. The 2030 fund should be about the same as the 2020 fund was when you retired 10 years ago. In October 2010, the L-2020 had 57.5% in the 3 stock funds...big difference in 10 years.