TSP to Broaden I Fund, Add More L Funds

[1-800money]

I found this today on FedWeek.

http://www.fedweek.com/fedweek/tsp-broa ... d-l-funds/

[Zulu]

Interesting read.

[AlpineTSP]

Thanks. Hope the changes are positive.

[ArrieS]

The consultant also investigated adding funds that would track specific market sectors such as real estate investment trusts, high-yield bonds and hedge funds but recommended against it.

http://www.fedweek.com/fedweek/tsp-broaden-fund-add-l-funds/

Give me my QQQ equivalent already!

[BigLeague]

I found this today on FedWeek.

http://www.fedweek.com/fedweek/tsp-broa ... d-l-funds/

Thank you.

[Jokerswild]

IMHO, I like the possibility of diversifying the I fund a little bit more to include other countries but the "need" for additional L funds really isn't value added. L funds are great, they do all the work for you basically when it comes to investing your funds in your TSP over the course of your career if that is the strategy you desire. However, I think it's safe to say that all of us want to maximize our returns to the best of our ability and in the comfort of our choosing. I feel with this site along with input from the amazing resources by Mjedlin66 and Aitrus (Seasonal Strategies), we can allocate our contributions in such a way to give us a healthy and hefty return which will outperform any L fund offered. This site has made trading and investing fun again, and I never knew I would ever be excited to talk to people about TSP. LOL

[Ritidian]

I wonder how the tinkering with the I fund would affect the seasonals.

[Jokerswild]

I wonder how the tinkering with the I fund would affect the seasonals.

Well we won't have to worry about that until 2020 or so to establish how these new allocations will change the strategies a little bit, and hopefully by then we can gather some better averages for the I fund as a whole. This year is quite unique for the I fund because previous years never showed the I fund being a major competitor to the US stock market funds. Suddenly it wants to take off like a cat that had its tail ran over by a rocking chair and our strategies haven't been able to capture the consistency or trends with this fund entirely.
For now, I don't think anyone would have said "Hey just put your money in the I fund and let it ride, because the evidence of this lack of knowledge is in our leader board on fantasy TSP. The majority of those in the lead for this year are individuals that had their allocations in I fund and haven't touched their account since previous years. Our seasonal strategies are designed to beat core funds, but when a core fund beats every strategy thus far, it shows that we are dealing with an entity that we aren't fully understanding yet.

[evilanne]

I would prefer that they created different funds like adding one for emerging markets rather than combining it into one fund with existing developed countries.

[ArrieS]

I would prefer that they created different funds like adding one for emerging markets rather than combining it into one fund with existing developed countries.

True, it creates exposure to risk that maybe they would not otherwise be willing to take.

[lotusgarde]

Why don't they just change the name of the L Funds to "5yr Outlook", "10yr Outlook", so on and so forth?? That would eliminate the need to "retire" a fund every ten and then five years.

[bamablue]

The volatility of the I fund and the lack of a 'reasonable' way to gauge when to get in or out have finally tilted me away. Maybe these changes will change the volatility -- doesn't matter if it's better or worse, just more predictable.

In the meantime, my risk averse "real money" is getting parked in the L2050 fund. I like to diversification and the moderate, but steady climb it's taken. When I get scared off from C-S-F-I funds, I've come to love this fund.

[SmokingGun]

Should be interesting to see how it turns out.

[evilanne]

The volatility of the I fund and the lack of a 'reasonable' way to gauge when to get in or out have finally tilted me away. Maybe these changes will change the volatility -- doesn't matter if it's better or worse, just more predictable.

In the meantime, my risk averse "real money" is getting parked in the L2050 fund. I like to diversification and the moderate, but steady climb it's taken. When I get scared off from C-S-F-I funds, I've come to love this fund.

You do realize that the L2050 is primarily invested in the funds you are scared of?

[Jokerswild]

The volatility of the I fund and the lack of a 'reasonable' way to gauge when to get in or out have finally tilted me away. Maybe these changes will change the volatility -- doesn't matter if it's better or worse, just more predictable.

In the meantime, my risk averse "real money" is getting parked in the L2050 fund. I like to diversification and the moderate, but steady climb it's taken. When I get scared off from C-S-F-I funds, I've come to love this fund.

You do realize that the L2050 is primarily invested in the funds you are scared of?

But there's that little bit of F and G that comforts the soul