Ask The Experts: Money Matters

By Mike Miles

Rebalance of funds in TSP

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Q: I recently read an article by Mike Miles regarding rebalancing the distribution of funds in your TSP. I’m currently in the L Fund 2020. With being in the L Fund, do I need to consider rebalancing my distributions or is this done automatically for me just by being in this type of fund?

A: The L Funds are automatically rebalanced daily to an ever-changing allocation. That is not the same as rebalancing your account regularly to an allocation selected to best meet your needs. I suggest you research the L Funds, and anything else in which your life savings is invested, to be sure that you clearly understand how they work and the risk they pose.

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Comments

  1. M Reck Says:
    June 15th, 2011 at 10:38 pm

    FYI> L Funds are re-balanced quarterly, please check TSP.gov for more information.
    @TSPnow