The L 2025 Fund is designed for participants in the Thrift Savings Plan (TSP) who plan to retire around the year 2025. This lifecycle fund is part of a broader series of funds offered by TSP that automatically adjust their investment allocations based on a target retirement date.

Key Features:

  • Adjusts asset allocation over time based on proximity to retirement.
  • Primarily composed of stocks, bonds, and government securities.
  • Suitable for individuals who want a hands-off investment approach.

The L 2025 Fund automatically becomes more conservative as the target date approaches, shifting from stocks to bonds and other fixed-income assets to preserve capital.

Investment Strategy Breakdown:

Asset Type Percentage Allocation
Stocks (C, S, I Funds) Initially high allocation, decreasing over time.
Bonds (F Fund) Gradual increase as retirement date nears.
Government Securities (G Fund) Minimal initially, rising as retirement approaches.