TSP Lifecycle funds are a mix of the 5 TSP funds. They are allocated in a way to be more aggressive the further from retirement you are.
The Lifecycle Inocme fund is 74% G Fund and 6% Fund. So, it’s 80% bonds. With a bit in C, S and I.
The Lifecycle 2050 fund on the other hand is mostly in stocks, about 80% with the bulk of the stocks being in the C Fund.
Now, each quarter the Lifecycle Funds get a bit more conservative. ANd that is my only real problem with them.
If you just retired, say are 60 years old and are in the Income Fund, you are simply not going to get any growth on that portfolio and yet you have probably 30 more years to live.
Can’t have that.
In fact after taxes and inflation, the Income fund loses money…
Now it won’t kill you in any given year but each year, year after year, you’re losing purchasing power. And it’s purchasing power that you need in order to grow to deal with rising costs.