TSP Talk Tracking of L funds -- An appeal for simplicity and consistency

[Safetyguy]

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Just a suggestion for Pyriel and other trackers:

For the regular posters, why dowe need to break down the allocation in the L funds? Lets just say 100% L2030 and track it that way.

The main reason is that the daily "rebalancing" may have a real impact on returns -- and it will make the end result more accurate than they way you are doing it now.

Why not just track the L funds by the share price (which is clearly posted each day) not by its components (i.e. G F C S I). OK I know you may have to add a few columns to the spreadsheet but the math is the still same (based on change in share price). Remember, this wonderful website is dedicated to help people with TSP -- we shouldn't ignore the L funds and the TSP participants that use them.

Also and lastly, most people don't understand the quarterly allocation adjustment and are misposting the actual "by fund" percentage (e.g. it is different in October than it was for August).I really worry that they may not understand how the L funds work.

 

[tsptalk]

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I was planning on adding the L-funds to the spreadsheet for 2006. It's going to be one ugly document. :shock:

And that's a good point you made; The daily rebalancing will make your L-fund returns on the spreadsheet more accurate.The only way the non-L fund investors can duplicate that isto enter a new transfer with the same allocation every day (unless you are 100% in one fund and contribute 100% to that fund).

 

[grandma]

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Safetyguy wrote:

I really worry that they may not understand how the L funds work.

This brings up the question that several of us have posted over the past 2-3 months: has anyone received the CD that TSP was supposed to have sent out? Considering the amount of money they said it was costing them to do all that I would hope that it didn't get file 13 on the way to the post office.! I know there was a brief brochure at work, - but if they really put money into creating a cd, I want to see it -

or have an explanation of what happened -

 

[Safetyguy]

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Actually my wife and I each received onea few weeks ago (so I have two). It is a DVD not a CD (and they claim it will run on any DVD player -- it doesn't). It didn't play on my DVD player but it did play on my computer.

I remember reading somewhere that they are sending out tens of thousands per day.

As formy review of the DVD -- it is pretty dreadful. It has five parts -- 1) a video message from Gary Ameilio (Director Federal Retirement Thrift Savings Board) who looks terrible and has a bad monotone presentation (and the white collar/blue shirt is so 1980s); 2) a video presentation that isn't too bad (basic intro to the funds, a brief mention of the daily rebalancing and quarterly reallocation, a few scenarios to see how it works -- (e.g. fictional fed employees with varying years to retirement -- like a fictional person named Lee whohas tenyears service and why L2030 is for him and his family. The cover all the age groups. My favorite is Janet, who has 15 years of service but didn't know what to do with her TSPinvestment so shedid nothing but 100% G). The over riding theme is to put your investment on "cruise control". The total video time is maybe ten minutes.


The rest of the menu optionsaredocument sections (mostly slide type presentations)-- an information sheet, a questions & answers (which I think is the same that is on the TSP.gov website), and a onescreen "How to invest in the L funds".

So Grandma, you ain't missing much if you haven't received it yet.

 

[grandma]

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Thanx - Safetyguy for the update. I will cross that off my `gripe/complain/carryonaboutlist.

Gives me breathing/thinking time

for the others!!! :l