https://www.tsp.gov/plan-news/2024-06-26-A-new-Lifecycle-Fund-is-coming-soon/
No action needed on your part really, but good to see TSP is staying on top of these Lifecycle Funds. If you have a later retirement date or you prefer to stay more aggressive with your investments, you could just keep rolling into the latest Lifecycle Fund.
Current L2065 asset allocation:
- G Fund 0.40%
- F Fund 0.60%
- S Fund 13.34%
- I Fund 34.65%
- C Fund 51.01%
I suspect we'll see a similar allocation with the new L2070 fund. Note that the L2065 doesn't start really adding more bonds (G and F funds) until January 2038, 14 years from now and 27 years from the target retirement age.
The L2070 fund will also probably become the new standard fund for those opening a TSP after January 2025, but that remains to be seen. Currently the L2065 is the standard fund for those opening a TSP at the moment.
Also, in case you missed it, there's a new I Fund coming that looks a lot better than the old I Fund: https://www.tsp.gov/plan-news/2024-02-05-I-Fund-benchmark-index-change-in-2024/
New I Fund has 90% of global excluding US market capitalization represented, vs only 55% with current I Fund.
| Current: MSCI EAFE Index | New: MSCI ACWI IMI ex USA ex China ex Hong Kong Index |
|---|---|
| About 800 large- and medium-capitalization companies | More than 5,000 large-, medium-, and small-capitalization companies |
| 21 developed countries | 21 developed countries |
| No emerging market countries | 23 emerging market countries |
| Represents 55% of non-U.S. market capitalization | Represents 90% of non-U.S. market capitalization |
| Fact sheet for MSCI EAFE Index | Fact sheet for MSCI AWI IMI ex USA ex China ex Hong Kong Index |
L2070: New TSP Lifecycle Fund Available July 2024, Target Retirement Date of 2068-2073
byu/AFmoneyguy inMilitaryFinance
Posted by AFmoneyguy