Ask The Experts: Money Matters

By Mike Miles

L Fund

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Q. At age 55½, what is the best L Fund I should put $5,000 in? In five years, what is the expected gain of the $5,000?

A. The best fund for you depends upon your unique set of goals, resources and constraints. Anything else is just a guess. Your age is not really a direct factor in making the choice. You’ll find information about the L funds, and suggestions for picking a fund (based on a guess), at www.tsp.gov.

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Comments

  1. USPS Letter Carrier Says:
    June 3rd, 2013 at 12:46 am

    There is no such thing as “best L Fund” in which to invest and no so call expect gain. The higher number L Funds (2040 & 2050) will perform better than the lower number L Funds when the market is doing well but will also suffer worse in a down period. If your $5k earned 10% over each of the next 5 years you’ll have ~$8050, @ 7.5% = ~$7180, and @ 5% = $6380.

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