SkyPilot
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| L-Funds |
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Was looking at an L funds promotional poster today, and noticed the graphic in the middle of the poster showing a dashboard with a speedometer and a tachometer with the caption "Put your investments on cruise control".
In that both the speed and the RPM's are showing "0", I don't think this is what they had intended 
However, when one fails to manage their finances and leaves the management and maintenance soley to others, this is very well how one could end up. 
Just a thought... Have you seen the poster I am talking about? Look for it in your personel office or employee break room area.
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Wed Dec 07, 2005 8:14 pm |
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SkyPilot
Senior Member
Cash: $ 100.11
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Joined: 13 Mar 2005
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Slowly Roasted
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Wed Dec 07, 2005 8:58 pm |
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Rolo
Yo' Daddy
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| Re: L-Funds |
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quote:
Originally posted by SkyPilot
In that both the speed and the RPM's are showing "0", I don't think this is what they had intended
LOL!!
Sarah: The L funds are a bit ephemeral, much like the popular Fidelity funds of the same label.
"Expect me when you see me."
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Thu Dec 08, 2005 5:36 am |
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SkyPilot
Senior Member
Cash: $ 100.11
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L Fund Blenders : As far as names go, I bet they roast a new blend every 5 years or so, and keep naming them for the year it comes due, so you may see a 2045 or a 2050 blender in a few years. As they come due, maybe numbered funds will dissolve into the last category that is primarily a G fund allocation.
Another thought: If the TSP board is allowed to make the L accounts the default allocation instead of the G fund, I am concerned that TSP could face some consequences. If we experience another downturn such as 2000 - 2003, would TSP be exposed to class action damage suits?
It seems to me that the TSP director has made statements that could easily be construed as "Financial Advice" while touting his new accounts. If so, the resulting damage settlement if loses should occur would likely be paid out of the TSP expenses, much like the promotion expenses of the "L" funds themselves.
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Thu Dec 08, 2005 2:11 pm |
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SkyPilot
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Cash: $ 100.11
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True, however, if the default is changed to L, and a tort lawyer can produce documents that the TSP board made undue recommendations that amount to " financial advice", the clause you mention might be considered invalid in such a suit. Such a waiver may be found to be innefective.
I think that the TSP board is overeaching their authority and scope by offering "financial advice" in hopes persuading participants to enroll in their initiative, without advising them of the risk. Remember, they are using terms such as "autopilot", cruise control, etc, which imply no risk.
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Thu Dec 08, 2005 5:08 pm |
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DanielB88
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interesting
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Sun Jan 08, 2006 4:12 am |
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gshenaut
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| When I was rehired recently |
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I had to sit through a two-day new employee orientation that included a TSP presentation. According to that, there is a plan to add a new L fund every 10 years. The exact weights given to each individual fund within the L-funds is adjusted continuously across a 40-year window.
The mental image I formed is that the L2040 fund will reach the weights of the L2030 fund after 10 years, and at that point, a new L2050 fund will be started similar to L2040 at its inception, and L2010 will merge with L-income.
Greg Shenaut
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Sun Jan 08, 2006 6:20 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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quote:
Originally posted by SkyPilot
Remember, they are using terms such as "autopilot", cruise control, etc, which imply no risk.
wOw. That's a quantum leap!
Is the cat dead?
"Expect me when you see me."
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Sun Jan 08, 2006 5:49 pm |
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