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'Lifecycle Funds' Aim To Maximize Retirement Savings
By Carl Surran
Fall 2005
Most people who contribute to the DoD-sponsored Thrift Savings Plan (TSP) shun riskier investment options and thus are not getting maximum returns to build bigger retirement nest eggs.
The Lifecycle Funds program now offers TSP participants the option to have experienced money managers make investment decisions for them according to 10-year cycles. It essentially allocates assets based on the length of time until the participant's retirement. The allocation process is automatic and changes as military service continues.
The new program was developed to move money out of more conservative investment options and allocate it among relatively riskier funds that should produce higher returns over the long term.
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Carl Surran is managing editor of Military Money.
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