The L Fund or LifeCycle Funds are designed for participants who may not have the time or experience to manage their TSP retirement savings. The assumption underlying the L Funds is that the participants who won’t need their money for quite a long time are able to tolerate more risk while seeking higher returns. The funds automatically adjust to reflect a reduced ability to tolerate risk as the need for income nears.

The optimal L Fund is the one that most closely matches your time horizon, that is, the year you expect to start withdrawing money from your TSP account. If you are currently receiving income from your TSP account or plan to start withdrawing in the very near future, consider the L Income Fund. It is designed to focus primarily on preserving the assets in your account. Each LifeCycle Fund invests in a mix of the five individual TSP funds. The mix is chosen by experts based on each fund’s time horizon. The L Funds’ asset allocations are designed to achieve the highest expected rate of return for the amount of risk taken. If the time horizon is a long time from now, the LifeCycle Fund will be more exposed to risky assets, such as stocks in the C Fund, S Fund , and I Fund.

As time horizons shorten, allocations gradually shift toward less volatile government securities G Fund. Each L Fund is automatically rebalanced, generally each business day, to restore the fund to its intended investment mix. Each quarter, the funds’ asset allocations are adjusted to slightly more conservative investments. When an L Fund reaches its designated time horizon, it will roll into the LifeCycle Income Fund, and a new fund will be added with a more distant time horizon. Investing in the L Funds does not eliminate risk, and the funds are not guaranteed against loss. The L Funds are subject to the risks inherent in the underlying funds and can have periods of gain and loss.

Performance: Average annual returns as of April 2023

2023 YTD	1 yr	3 yr	5 yr	10 yr
3.41%	4.08%	4.46%	3.74%	3.87%

Choosing an L Fund or Lifecycle Funds

L Income Fund: Consider investing in this fund if.

• You are already withdrawing from your TSP account.
• You were born before 1958.

L 2025 Fund: Consider investing in this fund if.

• You plan to begin withdrawing from your TSP account between 2023– 2027.
• You were born between 1958 – 1964.

L 2030 Fund: Consider investing in this fund if.

• You plan to begin withdrawing from your TSP account between 2028 – 2032.
• You were born between 1965 – 1969.

L 2035 Fund: Consider investing in this fund if.

• You plan to begin withdrawing from your TSP account between 2033 – 2037.
• You were born between 1970 – 1974.

L 2040 Fund: Consider investing in this fund if:

• You plan to begin withdrawing from your TSP account between 2038 – 2042.
• You were born between 1975 – 1979

L 2045 Fund: Consider investing in this fund if:

• You plan to begin withdrawing from your TSP account between 2043 – 2047.
• You were born between 1980 – 1984.

L 2050 Fund: Consider investing in this fund if.

• You plan to begin withdrawing from your TSP account between 2048 – 2052.
• You were born between 1985 – 1989.

L 2055 Fund: Consider investing in this fund if.

• You plan to begin withdrawing from your TSP account between 2053 – 2057.
• You were born between 1990 – 1994.

L 2060 Fund: Consider investing in this fund if.

• You plan to begin withdrawing from your TSP account between 2058 – 2062.
• You were born between 1995 – 1999.

L 2065 Fund: Consider investing in this fund if.

• You plan to begin withdrawing from your TSP account after 2062.
• You were born after 1999.

Lifecycle Funds Frequently Asked Questions

1) How can I use the LifeCycle Income Fund in my TSP Account?

A) Your investment in the LifeCycle Income Fund is designed to produce current income for you if you plan to start withdrawing from your account in the near future or are already receiving monthly payments from your account.

2) Am I ok with market and inflation risk?

A) The L Income Fund can have periods of gain and loss, just as the individual TSP funds do. However, the L Income Fund is the most conservative of the L Funds. It focuses on money preservation while providing a small exposure to the riskier funds (C, S, and I Funds) in order to reduce inflation’s effect on your purchasing power.

3) Why should I invest in the LifeCycle Income Fund?

A) You should consider investing in the LifeCycle Income Fund if you are currently withdrawing money from your TSP account in monthly payments or you plan to begin withdrawing money before 2021.

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