Ann Fagelson Government Seminars
Ann Fagelson Government Seminars, Inc 
MONTHLY NEWSLETTER

Topic:  LIFECYCLE FUND

May, 2008

 
In This Issue
I. L Fund
II. Solves Problems
III. Overall
IV. Lifecycle Investing
V. Five Funds
Quick Links
 
Greetings!
 
Welcome to the Ann Fagelson Government Seminars
 
We have over 25 years experience presenting planning programs exclusively for the Federal government.
 
In addition to our popular seminars, we are Offering a "free" monthly internet Newsletter for all Federal employees, who wish to enroll for this informative Information.

The Newsletter will address questions raised by students who have attended our classes. We pride ourselves on cutting through the bureaucratic language,  and translating it into understandable English.
 
Ann Fagelson
ANN
Ann Fagelson Government Seminars, Inc.

I. The L Fund

The TSP offers a fund called The L Fund.  The L stands for "Lifecycle".  This is a very significant addition.  In 2004, Jane Bryant Quinn, Newsweek's Financial Editor, wrote "My top advice:  If your retirement plan offers a "Lifecycle" fund, put all of your savings into it."  We strongly urge our readers to consider this alternative.  The fund allocates your retirement investments among the other five funds, based on your age, retirement date and goals. It is merely an arithmetic tool that will devise the best investment formula for each investor.
 
With the stock market being un-predictable over the short haul, Wall Street has been scrambling to come up with a product they can sell to gun shy investors.  One such concept is the Lifecycle fund.  The Lifecycle fund is an an extremely diversified package, designed to be the single fund in an investor's portfolio.
 II. Solves Problems
 
Lifecycle funds solve a lot of problems faced by TSP participants. A large majority of investors have neither the time, the inclination nor the expertise to plan for their retirement, and this is a turnkey kind of investment for them.  The funds, not only provide professional diversification, but also regularly rebalance the allocation.  This rebalancing is something most TSP participants don't do.
 
Wise investors tune their portfolio to be more conservative (meaning that the percentage of bonds rises while that of stocks falls) as they grow older. Lifecycle funds make those changes for you, as well as providing well-diversified portfolios.  Thus, Lifecycle funds are the ultimate in simplicity.
 
 

 III. Overall

"Overall, employers, looking to help employees make more informed investment allocations, may be able to do so more efficiently by offering Lifecycle funds", said Dallas Salisbury, President and Chief Executive of the Employee Benefit Research Institute.  People, who participate in the TSP, often don't change their asset allocations once they sign up because they just don't know what to do.  Lifecycle funds put the decision on how to allocate your contributions in the hands of professionals.

 IV.  Lifecycle Investing

Lifecycle investing could be the new fashion.  Also called "targeted investing", it is a style of investment where investors' savings are moved automatically out of riskier assets, such as the C Fund, into lower risk funds, such as a the G Fund, as their retirement date approaches. 
 
 
V.  Five L Funds
 
There are five L Funds.  The Now Fund is very conservative and is designed for people who are currently living on the proceeds in the TSP.  The others are the 2010, 2020, 2030 and 2040 Funds.  These are for people with longer time horizons.  We believe you can find an L Fund that will be in line with your investment goals and ability to assume risk.
 
We suggest that you seriously consider this "tool".  It will take a lot of the anxiety out of planning.
 

 Next Month:  Long Term Care Insurance

About our Speakers

Benefits
Lloyd Watnik
has a 39-year background with the Federal government, specifically in Social Security and Federal civilian pensions. This combination is rare for most trainers, and it is extremely beneficial for most of our students.
 
He fully understands the Windfall Elimination, The Government Pension Offset for CSRS employees, and the Special Retirement Supplement (SRS) for FERS employees. He clearly informs you about what you might expect to receive from Social Security in retirement, dispensing the myths you hear about the system. His unique style of presenting the program should not be missed. He has a caring and entertaining manner, which makes our programs very special for all attending.
Register Early!
 
 
 
 
No Selling
 
We have been told that other seminars companies and Federal Newsletters do point out "the good deals".  We choose not to for several reasons.  The most important reason is that our background and resources are in Federal retirement benefits. We are not life insurance, health insurance or mutual fund representatives, and we refuse to take referral fees of any kind.  We, too, have noticed what appear to be recommendations in Federal e-mail and hard copy publications on all of these issues.  In many cases, they even give you an application or an 800 number in the publication or website.  We have been told that fees are paid and, in fact, the article was written by the offering party.  BE CAREFUL!!  Do your homework.
 
If you have taken a Pre-Retirement course through Ann Fagelson Government Seminars, Inc., we allow free follow-up questions, which may have gone un-answered during the class, for up to 30-days following the conclusion of the course.

Only for Students
 
This offer is only for those who have attended our classes, not for relatives, friends or colleagues. Student must have current book in front of them when calling.
 
Thank's for your interest in our Newsletter and our programs.  Please spread the word about our company and have your friends join the mailing list through our website for their "free" subscription.

Register Early and Avoid Cancellations

Ann Fagelson Government Seminars, Inc.
 PO Box 19863
 San Diego, CA 92159-0863
 (619) 697-1334
 (619) 469-8665 fax

Our Fiscal Year 2008 course Dates, agenda details and costs are now online at:
www.governmentseminars.com.
Questions?
 
We do not accept phone calls nor e-mails regarding specific information generated from this free Newsletter. Details of all topics raised in our articles are fully discussed within our retirement planning seminars. For complete details about our programs and registration information, please click on www.governmentseminars.com.
 
Open Classes 2008
 
CSRS (3-Days)
June 10-12                Portland, OR
June 17-19                San Diego
August 12-14            Reno
September 9-11       San Diego
November 11-13      San Diego
 
FERS (2-Days)
June 24-25                San Diego
 
FERS (3-Days)
September 16-18    San Diego
December 2-4          Las Vegas
 
FERS Law Enforcement/FireFighter (3-Days)
February 12-14       San Diego (Available for on-site classes)
Our 2009 Schedule will be out in 1 month.
 
CSRS & FERS  Law Enforcement/FireFighter (4-Days)
March 10-13             Reno (Available for on-site classes)
Our 2009 Schedule will be out in 1 month.
 
CSRS & FERS (4-Days)
May 12-15                Gaithersburg, MD (Closed)
July 21-24                Portland, OR (Still have space)
August 18-21          Gaithersburg, MD (Still have space)
 
Thrift Savings Plan and Social Security (1-Day)
September 4            San Diego
 
COSTS:
1-Day Classes $250 per employee
2-Day Classes $375 per employee
3-Day Classes $495 per employee
4-Day Classes $650 per employee
 
Over 30 employees? 
Ask about our group discounts for agency sponsored programs for 30 or more employees at the agency's site.
 
Contact us:  (619) 697-1334
                             info@governmentseminars.com