The companion blog post to this video can be found here: If you’d like to learn a 4 step investing system that gets rid of 4 painful investing mistakes, click the link below for a free investment course called Off Wall Street Wealth: -Transcript- Hey Everybody, Dieter Scherer here, fee-only financial planner and Founder of Realize Your Retirement. Today, we are going to go over TSP Lifecycle Funds and an example of why they aren’t that great. Lifecycle funds started cropping up in the early 2000’s as a cheaper way to invest with professional advice. The idea is pretty attractive, invest your money with a lifecycle fund targeted to your date of retirement and you never have to worry about managing your investment. While the idea is great in theory, it falls short in practice. Investment management should be based on: Your ability to deal with volatility in your portfolio Your income and growth needs The value of assets outside of your retirement account The allocation of your other investment accounts Tax minimization Your time horizon, which is the amount of time over which you invest Instead, Lifecycle funds only focus on one aspect of your investment management: you time horizon. As we discussed a moment ago your time horizon is only one piece of the investment management puzzle. Fund administrators need to cater to all members in the fund. The average investor is fairly risk averse, so they are ultra conservative with

Top Popular Products: