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L 2040

First, let's answer a few questions.

  • You should consider investing in the L 2040 Fund if you plan to withdraw money from your TSP account beginning 2035 through 2044.

  • When you invest in the L 2040 Fund, you are subject to the investment risks associated with the G, F, C, S, and I funds. This means that the L 2040 Fund can have periods of gain and loss, just as the individual TSP funds do.

  • Your investment in the L 2040 Fund will help you to achieve the best expected return for the amount of expected risk that is appropriate for your time horizon. The L 2040 Fund makes the investing process easy for you because you do not have to figure out how to diversify your account or how and when to rebalance - it’s done for you.

The L 2040 Fund’s investment objective is to achieve a high level of growth with a low emphasis on preservation of assets. The Fund's allocation in the G, F, C, S, and I Funds is adjusted quarterly. The L 2040 will roll into the L Income Fund automatically in July 2040 when its allocation becomes the same as the allocation of the L Income Fund.


Average annual returns
YTD (Daily) 1 Yr 3 Yrs 5 Yrs 10 Yrs
- - - - -
  • Details As of 12/31/2019

    $136.5 billion

    Net admin expense
    $0.420/$1,000 account balance 0.042% (4.2 basis points)

    Other expense
    $0.050/$1,000 account balance 0.005% (0.5 basis points)

    Benchmark index
    Dow Jones U.S. Completion TSM Index |

    Asset manager
    BlackRock Institutional Trust Company, N.A

    Allocation target

  • L 2040 Allocation

  • Fees As of 12/31/2019

    Net admin expense*
    $0.420/$1,000 account balance 0.042% (4.2 basis points)

    Other expense**
    $0.050/$1,000 account balance 0.005% (0.5 basis points)

    * An expense ratio of 0.042% translates to 4.2 basis points or $0.420 per $1,000 acount balance.

    **Fees paid to the investment manager.

    Additional information

    TThe L 2040 is designed for you if your time horizon falls within the 2035 through 2044 range. The asset allocation of this fund is adjusted quarterly, moving to a more conservative mix, gradually approaching that of the L Income Fund. Between quarterly adjustments, the asset allocation of the L 2040 is maintained through daily rebalancing to the fund’s target allocation.

    Remember, however, that expected risk and return are based on assumptions about future economic conditions and investment performance. There is no guaranteed rate of return for any period, either short-term or long-term. For the fund’s historical returns, visit Share Price History. Past performance does not guarantee future results.