How do the L Funds work?

The L Funds invest in the G, C, F, S and I Funds, with the money allocated among those five funds according to a formula based on the projected withdrawal date. The farther out the date, the more aggressive the investment mix. Investments are adjusted each business day to maintain the desired allocations and are changed slightly each calendar quarter to become more conservative as the projected withdrawal date approaches. The mix also is adjusted occasionally to reflect what the TSP determines to be the best ratios of the funds under long-term financial trends.

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