L2025 Fund

[jackvs1]

Any thoughts on this fund; I know its brand new. My initial opinion is that the diversification is way to high on the International Fund at 17.5%. I like the balance between Government & Fixed at 50% and the C,S, I at 50%; just think to much emphasis on International. Right now I am 40% G & F and 60% C, S, and I, but 18% on S, and 8 on I. Plan to retire in 4 years. Thanks

 

[nasa1974]

Any thoughts on this fund; I know its brand new. My initial opinion is that the diversification is way to high on the International Fund at 17.5%. I like the balance between Government & Fixed at 50% and the C,S, I at 50%; just think to much emphasis on International. Right now I am 40% G & F and 60% C, S, and I, but 18% on S, and 8 on I. Plan to retire in 4 years. Thanks

jackvs1,
The attached excel spreadsheet might give you some insight on how each fund has done since 1988. Hope it helps.

 

[nnuut]

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[nasa1974]

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Thanks. I updated the excel file so hopefully this works. I still have some fine tuning to do on it though.

 

[nnuut]

Yes it works now, GOOD Job!

 

[edfong]

I am retired at 59 already drawing a very small federal pension, but I am not comfortable with the pricing of L Income as much as I am 80% in L2025. Of course, your situation and your comfort/risk aversion is yours. L2025 is half G and F and half C S and I. My personal objections is that L2025 is too heavily weighted on the G over F. As such, I put 10% in F. Some have objected to the high level of I Fund in L2025. For me, I am contrarian here, if you are already in International, selling only locks in your losses. If you get into International, you are buying a bargain. I don't believe in timing but I do believe in allocation. For example, the TSP Board of Directors but not Trump Administration want to include China in the I Fund. As such, I put 10% in L2065 to up my exposure to C S and I. The opposite view to all this financial engineering is that you should be only in one L Fund to maximize the efficient frontier as put together by the TSP Board with the help of the consultants like Blackrock, Mercer and now Aon.

Regarding my "Price Analysis" it is all based on the simple arithmetic that is Weighted Average. I looked closely at the closing of L2010 and L2020 when they merged into LIncome. I see L2050 still as underpriced and now see L2025 and L2065 as IPO's for the little guy. The question is Does Underpriced mean Undervalued?

Am Haas undergrad in Mrktg/Finance. Was Project Accountant and Contract Specialist during my days in the defense and telecom industries.

 

[tsptalk]

I don't see price as anything to consider. They all started at $10 per share and the older the fund (L fund that is) the more time they had to grow. But they will all only go up or down percentage-wise, the same as the funds (G,F,C,S,I) within them go up, depending on the L-fund's split.

 

[jackvs1]

Thank you and the very best in retirement.