L Fund

The L Fund is a target-date investment option offered by retirement plans like TSP, designed for those planning to retire around a specific year. It automatically adjusts its investment mix over time—from more growth-oriented assets like stocks to more stable, conservative investments like bonds—as the target date approaches. This helps to balance growth potential with risk management, aiming to support your retirement goal. The further away your retirement date, the more aggressive the fund's investments; as retirement nears, the fund becomes more conservative to protect your savings.