TSPCalc strats & The L Income Fund
Moderator: Aitrus
TSPCalc strats & The L Income Fund
So I think I saw it mentioned in a thread on here previously about using the L Income fund in place of G and/or F in the strategies...Has anyone tried it?
Some quick facts on the L Income:
1.) has outperformed, and on many occasions significantly outperformed the G Fund, 10 of the last 15 years and a few of those years was very close to a matched performance
2.) Currently has a 9.22% rate of return for the last 12 months Vs the G Fund @ .96%
3.) Has a 2.88% return YTD for 2021 vs the G Fund @ .53%
Anyway...just wondering if anyone has tried this in their TSP calc strategy and what was their experience with it....successful vs unsuccessful?
Cheers!
Some quick facts on the L Income:
1.) has outperformed, and on many occasions significantly outperformed the G Fund, 10 of the last 15 years and a few of those years was very close to a matched performance
2.) Currently has a 9.22% rate of return for the last 12 months Vs the G Fund @ .96%
3.) Has a 2.88% return YTD for 2021 vs the G Fund @ .53%
Anyway...just wondering if anyone has tried this in their TSP calc strategy and what was their experience with it....successful vs unsuccessful?
Cheers!
Cheers!
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Re: TSPCalc strats & The L Income Fund
Haven't tried it, but I find the idea quite intriguing.
Re: TSPCalc strats & The L Income Fund
I thought about the same and am trying it for a second time this year; as at each move I didn't like F or G. The first try earlier this year I came out ahead; but this second, current time; F is ahead. So not large data points but an intriguing alternative for sure.
Re: TSPCalc strats & The L Income Fund
I think you're going to be disappointed.
You are comparing the L fund to the G fund over long time frames. In the long run, the L fund wins because it is partially invested in stocks.
Usually, when a TSPcalc strategy runs to G, it is in anticipation of a downside in the short term. If the prediction of downside is correct, then the L fund will lose more than the G fund during that short window.
You are comparing the L fund to the G fund over long time frames. In the long run, the L fund wins because it is partially invested in stocks.
Usually, when a TSPcalc strategy runs to G, it is in anticipation of a downside in the short term. If the prediction of downside is correct, then the L fund will lose more than the G fund during that short window.
Owner/creator of TSPcalc.com - "Know your numbers"
Re: TSPCalc strats & The L Income Fund
Interesting...and that's why I asked the question...mjedlin66 wrote: ↑Thu Jun 24, 2021 1:33 pm I think you're going to be disappointed.
You are comparing the L fund to the G fund over long time frames. In the long run, the L fund wins because it is partially invested in stocks.
Usually, when a TSPcalc strategy runs to G, it is in anticipation of a downside in the short term. If the prediction of downside is correct, then the L fund will lose more than the G fund during that short window.
People know way more about it than I...
Cheers!
Cheers!
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Re: TSPCalc strats & The L Income Fund
I tried it this spring when the F fund was obviously under performing. i realized that Linc was posting gains daily while F struggled mightily. It was a suitable replacement in my opinion. My last scheduled move to the F fund I customized my allocation from Linc just a bit. I wanted more exposure to the S fund and and i wanted no part of F. My last IFT was 70G/10S/10C/10I. This has proved to be a great alternative for me. With the market volatility as of late, I am comfortable with just 30% of my balance in equities. It's stress free. On green days my balance gets a bump and on red days, I'm not worried that I'm over exposed.
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Re: TSPCalc strats & The L Income Fund
Mega,
Thank you for sharing your "alternative-to-F fund" strategy in the current market environment. It has pained me every time my strat went to F recently, given its recent performance amid potential inflationary pressures. My strat has me in F fund for most of August (which I believe is a commonality among many of the more aggressive strategies) and I intend on trying the 70/10/10/10 mix you mentioned.
Thank you for sharing your "alternative-to-F fund" strategy in the current market environment. It has pained me every time my strat went to F recently, given its recent performance amid potential inflationary pressures. My strat has me in F fund for most of August (which I believe is a commonality among many of the more aggressive strategies) and I intend on trying the 70/10/10/10 mix you mentioned.
- gbnooks207
- Posts: 31
- Joined: Fri Jan 30, 2015 8:39 pm
Re: TSPCalc strats & The L Income Fund
Deleted
Last edited by gbnooks207 on Mon Jun 28, 2021 11:14 pm, edited 2 times in total.
- gbnooks207
- Posts: 31
- Joined: Fri Jan 30, 2015 8:39 pm
Re: TSPCalc strats & The L Income Fund
My attitude toward an L fund (blend/mix fund) have changed over the years. If you are shooting for 20-30% yearly returns and do not mind the risk, a blended fund is probably not in your cards. After recrunching my numbers earlier this year, if I hit 10-15% returns for the next 5 years, I will be in good shape for retirement. So, I am cutting more of the risk out of my model and will be using more blends. I do agree with megalush5 and think it wiser to make your own blend instead of an L fund. My model - https://tspcalc.com/seasonal.php?ID=141 ... ears=13-21 - is only in C/S/I 35% of the time and the rest I will be using either a blend or just staying in the G fund. As far as what kind of blend, I will use the historic data … in August the I fund has done poorly in 6 of the last 8 years so I do not think that will be in my August blend.
Re: TSPCalc strats & The L Income Fund
GBgbnooks207 wrote: ↑Mon Jun 28, 2021 11:07 pm...My model - https://tspcalc.com/seasonal.php?ID=141 ... ears=13-21 - is only in C/S/I 35% of the time ...
I took a quick look at your strats above and was struck at how high their stddevs were for only being 35% in the equity funds. Is that by design?
- gbnooks207
- Posts: 31
- Joined: Fri Jan 30, 2015 8:39 pm
Re: TSPCalc strats & The L Income Fund
bloobs -
It is hard to change my mindset, but I am trying to transition into a safety-first mode over a consistent (Std Dev), high risk, high return mode. At this point, I am more concerned about the lack of negative monthly returns and I am not concerned about where the Std Dev falls (sorry). Out of 101 months (2013 to now), 96 months came in with a positive return – 95% of the months came in with a positive return! While I am positioned in the G fund on the trading calendar, I can either stay put in G, use a safe blend, or wait until the market goes down to jump in when I think it safe. I am only shooting for a 10-15% yearly return so I hope I do not blow it too much.
It comes down to your risk factor and where you are in your retirement journey. I am really hoping that I am in my last 5 years, fingers crossed.
I use 2013 to present time as the historical data to make decisions from because I feel people have become more knowledgeable from using TSP Center and TSP Calc plus it is quicker/easier to make an IFT then years past.
It is hard to change my mindset, but I am trying to transition into a safety-first mode over a consistent (Std Dev), high risk, high return mode. At this point, I am more concerned about the lack of negative monthly returns and I am not concerned about where the Std Dev falls (sorry). Out of 101 months (2013 to now), 96 months came in with a positive return – 95% of the months came in with a positive return! While I am positioned in the G fund on the trading calendar, I can either stay put in G, use a safe blend, or wait until the market goes down to jump in when I think it safe. I am only shooting for a 10-15% yearly return so I hope I do not blow it too much.
It comes down to your risk factor and where you are in your retirement journey. I am really hoping that I am in my last 5 years, fingers crossed.
I use 2013 to present time as the historical data to make decisions from because I feel people have become more knowledgeable from using TSP Center and TSP Calc plus it is quicker/easier to make an IFT then years past.
Fund Prices2024-03-28
Fund | Price | Day | YTD |
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% |