Changing Out F Fund with L Income Fund

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dearsmiths
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Joined: Thu Aug 19, 2010 10:41 am

Changing Out F Fund with L Income Fund

Post by dearsmiths »

Just wondering if anyone has thought about this approach. F fund did not do that well in June, keeping with Timbo's seasonal. Any thoughts on using the L Income fund??

Thx,

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dougellen1
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Re: Changing Out F Fund with L Income Fund

Post by dougellen1 »

This ..smith guy needed at least one hit on his post.

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evilanne
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Re: Changing Out F Fund with L Income Fund

Post by evilanne »

I don't care for the L Funds.

Midway
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Joined: Tue Feb 28, 2012 6:09 pm

Re: Changing Out F Fund with L Income Fund

Post by Midway »

What are you trying to accomplish by substituting the L fund for F?

wisepierre
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Joined: Thu Feb 18, 2016 11:55 pm

Re: Changing Out F Fund with L Income Fund

Post by wisepierre »

The L income fund is just this breakdown:
74% G
6% F
11.2% C
2.8% S
6% I

Which basically means it's 20% stock, 80% bonds (and mostly G). It's also rebalanced daily, whereas the other L funds are rebalanced quarterly.

IMO if you are going to be 74% G, you might as well go 100% G.

dearsmiths
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Re: Changing Out F Fund with L Income Fund

Post by dearsmiths »

Midway wrote:What are you trying to accomplish by substituting the L fund for F?


Midway, I was just checking since F seems more up and down and the L fund has been more steady going up that it could be safer bet to invest in the L than the F fund. Just wanted to see what you guys think, many of whom are much better analysts than myself.

Thanks.
Last edited by dearsmiths on Wed Jul 05, 2017 10:35 am, edited 1 time in total.

dearsmiths
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Re: Changing Out F Fund with L Income Fund

Post by dearsmiths »

dougellen1 wrote:This ..smith guy needed at least one hit on his post.


Thank you Mr. Doug guy ;-).

Midway
Posts: 252
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Re: Changing Out F Fund with L Income Fund

Post by Midway »

If you're looking for stability, you can't beat the G-fund. However, it seems that you want to be in a seasonal strategy for the other 11 months of the year, so I am not sure how the L fund will match your needs. I don't think any of the calculators I have seen incorporate the L funds so you would have to manually run the numbers. One of the Excel gurus may be able to run them for you. Who knows, maybe someone will come up with a seasonal strategy using the L funds that beats the Seasonal or Daily Seasonal strategies that have been discussed here.

dearsmiths
Posts: 69
Joined: Thu Aug 19, 2010 10:41 am

Re: Changing Out F Fund with L Income Fund

Post by dearsmiths »

Midway wrote:If you're looking for stability, you can't beat the G-fund. However, it seems that you want to be in a seasonal strategy for the other 11 months of the year, so I am not sure how the L fund will match your needs. I don't think any of the calculators I have seen incorporate the L funds so you would have to manually run the numbers. One of the Excel gurus may be able to run them for you. Who knows, maybe someone will come up with a seasonal strategy using the L funds that beats the Seasonal or Daily Seasonal strategies that have been discussed here.


Thanks, I was suggesting that using the L fund in lieu of F fund on seasonal might be a alternative approach. Appreciate the feedback.

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Jokerswild
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Re: Changing Out F Fund with L Income Fund

Post by Jokerswild »

Just to sprinkle some basic understanding on this topic, no L fund or combined allocation will ever beat the high core fund for the month. So if you're considering doing a L swap for a seasonal recommendation instead of F, it might perform better than it for that period of time because of the L funds having some stock investment. However, if the F core fund was the overall leader for that month if you're looking at ROI, the L fund would be below that based on the combined allocations. The stocks would basically bring it down. L funds are great for general overall set it and forget it attitudes to investing, but not for those looking to maximize their returns with timed IFTs. Hope that all made sense ;)
Shawn AKA "Joker"

"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen

dearsmiths
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Joined: Thu Aug 19, 2010 10:41 am

Re: Changing Out F Fund with L Income Fund

Post by dearsmiths »

Jokerswild wrote:Just to sprinkle some basic understanding on this topic, no L fund or combined allocation will ever beat the high core fund for the month. So if you're considering doing a L swap for a seasonal recommendation instead of F, it might perform better than it for that period of time because of the L funds having some stock investment. However, if the F core fund was the overall leader for that month if you're looking at ROI, the L fund would be below that based on the combined allocations. The stocks would basically bring it down. L funds are great for general overall set it and forget it attitudes to investing, but not for those looking to maximize their returns with timed IFTs. Hope that all made sense ;)


It does make sense and thanks for the reply. It would be interesting to see if you replace the L fund with the F fund for timbo's seasonal. But, hearing what you are saying. it might be a safe fund to use when you retire and only want 3-4% yearly interest since it's heavily in the G and spattering elsewhere.

Thx again.

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Jokerswild
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Re: Changing Out F Fund with L Income Fund

Post by Jokerswild »

Well the L funds to include L2020, L2030, etc are great blends and depending on your caution or risk, are ideal for anyone with minimal understanding the market of funds. I won't lie, Id be in L2050 which has the highest percentage of risk even though I'm retiring soon because (at the time) i didn't see my TSP account ever gaining enough interest to satisfy my full retirement needs. Pretty soon you'll also see additional L funds available like L2025, L2035, L2045, etc to give you additional choices. Now and confidently i can say that this site and contributers have shown me how to develop an actual strategy for TSP investing (that NOBODY teaches on a military base) and i don't believe I'll ever just use any L funds IF my goal is to try and maximize returns. That's what the seasonal daily or monthly strategies are all about, giving us a higher probability of moving your investment into the fund that will give us the best return based on historical trends. This was the most invigorating thing I've ever heard about TSP in all the years i had been putting money into this thing. Since you can easily compare all the available funds historical data on the charts here in tspcenter, you can see that the G is stable, the F has usually a slightly higher return, next would be L, then L2020, eventually up to S or I (at least this year) for most volatile. If the seasonal says go G, but you're thinking you want to take a little more risk, go F as a core fund, or consider a lifecycle. But, if the lifecycle fund does turn out to be a better return during that period than your G fund would have done, whatever core fund that drove that return higher would in turn still have an even better ROI if you went 100% to begin with. Ok, now my brain hurts lol
Shawn AKA "Joker"

"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." - Robert G. Allen

Foghorn1
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Joined: Wed Jun 07, 2017 3:29 pm

Re: Changing Out F Fund with L Income Fund

Post by Foghorn1 »

June is historically a poor month within the TSP. Even if you look at monthly historical data, the F Fund is never the best in June: 2001-Present G Fund, 2003-Present G Fund, 2008-Present G Fund, 2013-Present S Fund. Staying in F Fund throughout the summer is not the best move available. Only in August and September since 2001 has the F Fund been the highest average. Considering interest rates are about to rise, and push bond prices down, it may be even a worse bet.
Last edited by Foghorn1 on Thu Jul 06, 2017 3:15 pm, edited 1 time in total.

BigBrenda
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Re: Changing Out F Fund with L Income Fund

Post by BigBrenda »

I think a lot of the seasonals use F for Aug/Sep.

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MtnBiker
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Re: Changing Out F Fund with L Income Fund

Post by MtnBiker »

BigBrenda wrote:I think a lot of the seasonals use F for Aug/Sep.


Part of my strategy this year too. :|

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Fund Prices2024-03-28

FundPriceDayYTD
G $18.15 0.05% 1.05%
F $19.08 -0.06% -0.74%
C $82.21 0.11% 10.55%
S $82.43 0.30% 6.92%
I $42.57 -0.24% 5.95%
L2065 $16.38 0.02% 8.37%
L2060 $16.39 0.02% 8.38%
L2055 $16.39 0.02% 8.38%
L2050 $32.73 0.01% 6.95%
L2045 $14.91 0.02% 6.58%
L2040 $54.38 0.02% 6.22%
L2035 $14.34 0.02% 5.79%
L2030 $47.67 0.02% 5.38%
L2025 $13.15 0.03% 3.43%
Linc $25.61 0.03% 2.82%

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Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".