Lifecycle Funds
1) Buy and holding regardless of market valuations;
2) Heavily exposed to market risk;
3) Underweight global tech;
4) Underweight the effect of US corporate buybacks;
5) Achieve little diversification with highly correlated funds
This is not rocket science. It just takes time to do the research which is not something most investors have. This 15 minute guide will save you a lot of time and hopefully increase your future returns starting today by changing some assumptions about the TSP funds you can invest in.
These issues apply to all the TSP funds, but we will look at the problems through the Lifecycle funds. Does anyone really think you can just pick a fund based on your retirement date and let it ride in a… Read More ›