Ramifications of switching lifestyle funds in TSP?

[fallstoclimb]

Forgive me for this very stupid question but I want to be sure I'm thinking this through.

Most of our savings is invested in my TSP, the 2040 lifecycle fund. I am realizing this fund is a bit too conservative for me - it's nearly 30% bonds right now. I recently came across the concept that my pension can serve effectively the same role as bonds in my portfolio, and after thinking it over for a bit I am interested in shifting to a bit more aggressive lifecycle fund now, probably the 2050 fund with about 17% bonds at the moment. All of our other retirement vehicles (except for our new i bonds) are invested much more aggressively, but the TSP represents 63% of our retirement savings, so it is shifting our overall portfolio to be fairly conservative.  We are in our late 30s.

If I move 100% of my TSP from L2040 to L2050 right now, is there any way in which I am "locking in losses"?  Or, probably, am I just buying more stocks on sale since I am shifting from more bonds to fewer bonds?  Am I thinking about this the right way and are there any ramifications of this move?
 

[Catbert]

I would not think of this as "locking in losses" rather it's "buying stocks on sale".  If you panicked and went all G fund that would be "locking in losses".

Why go with a lifecycle fund at all?  Just pick your asset allocation, move things around as necessary and/or decide how to allocate future contributions, review once a year.  Rinse and repeat.  Any lifecycle fund is going to have arbitrate timeframes when it shifts asset allocation.  As you've experienced that doesn't always match what you think is a good asset allocation for you.  Also do you have significant assets outside TSP?  If so, you need to consider them in determining if your overall asset allocation is what you want/need.  Easier with individual funds rather than lifecycle funds.

[fallstoclimb]

Right, this makes sense to me.  Some of my brain is still struggling with the idea of selling stocks that are low but then....buying other stocks that are low.  Plus with a bigger shift away from bonds, I figured this would be okay, but thanks for the reassurance!

I do like lifecycle funds because they are self-adjusting and because they more or less get me in the right place - I just think TSP errs on the side of a bit too conservative.  Our Vanguard 2045 funds are only 8% bonds!