Tsp l 2050 fund electricity outage houston tx

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The L Funds are essentially a diversified investment portfolio of stocks and bonds in a single fund. Like the other Lifecycle Funds, the TSP L 2050 Fund is an investment mix of the TSP G, F, C, S, and I Fund. Its target asset allocation is adjusted every quarter. The goal is to strike a good balance between expected risks and returns, and to gradually decrease the allocation to the riskier TSP funds (such as the stock funds) as the fund’s target date approaches. When the L 2050 Fund reaches its target date, its allocation will be the same as the allocation of the L Income Fund: 74% G, 6% F, 12% C, 3% S, and 5% I Fund. The fund managers assume that to pursue a potentially higher return, investors are willing to tolerate more risk (investment volatility) while they are still many years away from their planned retirement date.

The charts below show the historical performance and risk of investing in the TSP L 2050 Fund. As of 5/25/2018, the fund has a compound annual growth rate of 9.8%, annualized standard deviation of 12.8%, and Sharpe Ratio of 0.64. An initial investment of $1,000 on 1/31/2011 would be worth $1,977 today:

The L Funds are rebalanced to their target allocations every business day. Some investors and financial advisors would consider this to be too frequent, preferring instead to “let their winners ride” and let their allocation drift a little before rebalancing. Rebalancing a portfolio too frequently can lead to slightly inferior investment returns.

TSP investors who are considering an L Fund should carefully examine the fund’s target asset allocation. It can be quite aggressive for funds with a distant horizon. For example, when the L 2050 fund was introduced in January 2011, its asset allocation was 10.5% bonds and 89.5% stocks. With that much invested in stocks (including a substantial allocation to international stocks), investors should be prepared for occasional severe declines in portfolio value, such as what happened during the most recent global financial crisis in 2008 and 2009.

The TSP L 2050 Fund is a low maintenance investment option: no action is required by the TSP investor to rebalance their portfolio, or to adjust their investment mix as they approach retirement age. It’s all handled automatically by the fund’s manager.

The L Funds are essentially a diversified investment portfolio of stocks and bonds in a single fund. Like the other Lifecycle Funds, the TSP L 2050 Fund is an investment mix of the TSP G, F, C, S, and I Fund. Its target asset allocation is adjusted every quarter. The goal is to strike a good balance between expected risks and returns, and to gradually decrease the allocation to the riskier TSP funds (such as the stock funds) as the fund’s target date approaches. When the L 2050 Fund reaches its target date, its allocation will be the same as the allocation of the L Income Fund: 74% G, 6% F, 12% C, 3% S, and 5% I Fund. The fund managers assume that to pursue a potentially higher return, investors are willing to tolerate more risk (investment volatility) while they are still many years away from their planned retirement date.

The charts below show the historical performance and risk of investing in the TSP L 2050 Fund. As of 5/25/2018, the fund has a compound annual growth rate of 9.8%, annualized standard deviation of 12.8%, and Sharpe Ratio of 0.64. An initial investment of $1,000 on 1/31/2011 would be worth $1,977 today:

The L Funds are rebalanced to their target allocations every business day. Some investors and financial advisors would consider this to be too frequent, preferring instead to “let their winners ride” and let their allocation drift a little before rebalancing. Rebalancing a portfolio too frequently can lead to slightly inferior investment returns.

TSP investors who are considering an L Fund should carefully examine the fund’s target asset allocation. It can be quite aggressive for funds with a distant horizon. For example, when the L 2050 fund was introduced in January 2011, its asset allocation was 10.5% bonds and 89.5% stocks. With that much invested in stocks (including a substantial allocation to international stocks), investors should be prepared for occasional severe declines in portfolio value, such as what happened during the most recent global financial crisis in 2008 and 2009.

The TSP L 2050 Fund is a low maintenance investment option: no action is required by the TSP investor to rebalance their portfolio, or to adjust their investment mix as they approach retirement age. It’s all handled automatically by the fund’s manager.