![]() ![]() These funds automatically adjust their holdings to become more conservative as the target retirement date nears. There are currently five L funds with different retirement target dates. To make it easier for participants to reallocate their investments as they work toward retirement, the TSP created the L funds, which consist of varying combinations of these five main funds. This fund invests in international stock markets. The risk is still higher than the C fund, but the rate of return is higher. But instead of big companies, it invests in smaller companies that aren't in the S&P 500. This fund invests in the stock market too. The risk is still higher than the F fund, but the rate of return is higher too. If the stock market goes up, you can make money. The stocks are made up of the Standard and Poor's 500 (S&P 500) Index, a mix of stocks of 500 large to medium-sized U.S. Usually, when stock markets go down, bonds go up in value. Your risk is fairly low, but your rate of return is too. government, mortgage-backed, corporate and foreign government bonds. You won't lose money investing in this fund, but your rate of return is the lowest. ![]() This fund invests in government securities and is the safest option. TSP participants can choose to invest their money in five main funds: Younger investors benefit from greater returns early in their career, since their investment growth is compounded over time. Normally, younger investors can make up market losses over time however, older investors don't have that luxury. ![]()
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