< 1 pct. IFT Option

[nasa1974]

Re: <1%IFT Option

As long as you make an IFT before noon eastern time the account percentages will be adusted to your account at the end of that trading day. If you make an IFT after noon eastern time the percentages take effect the next day, i.e. IFT made at 1:00pm Monday the percentages change end of trading on Tuesday.

At the end of the day your account total is adjusted by the number of shares times the share price. Example 6072.1693 shares in the G fund times $12.7515 price per share at the end of the day equals $77,429.27.

If you did not make an IFT for the day your number of shares will stay the same but your percetages will have to adjust to equal the total.

If you did make an IFT for the day then the shares will adjust up or down to equal the total.

I wanted to show an example but had to go off to a meeting. Attached is an example of the <1% option and how it affects the shares and percentages. I hope this will answer most questions.

 

[Guest2]

Re: <1%IFT Option

That's a great sample and a big help Nasa, Thanks !

Note: This document opens with Microsoft Excel and can be
found within the Microsoft Office Suite. If you don't have the
Office Program, you can download a FREE version called Excel
Viewer from the Microsoft Web Site. The drawback to the free
viewer is; "it only lets you view the document and not edit it with
your specific dates and numbers".

 

[Guest2]

Re: <1%IFT Option

Top Views in the Last 10 days:

<1%IFT Option 1292
March Madness 2009 999
Where is my Bonus? 868
Market Talk /... 194
Handballer's... 191
Postal: 150,000... 154
Diving into the MB 139

Not too shabby ! There appears to be interest by the membership.
I'm feeling better and better about making this Thread. Thanks All !

 

[Guest2]

Re: <1%IFT Option

Thanks SB. Judging by this it sounds like the IFT goes into effect before the closing prices that day.

By the way, I'm sure I'm not alone when I say; "we'd love to hear from
you, should you decide to do a <1%IFT" That goes for all the membership.
There's no such thing as a stupid question and the answers may help
others who struggle with this concept. So please feel free to stop by
at any time. Even if its just for a "Drive-By Hello"

 

[Aule Mar]

Re: <1%IFT Option

I think I understand how it works, but how do you actualy make the IFT. Do you make an IFT but leave the percentages as they are, forcing the system to recalculate them. (isn't that considered an IFT even though you didn't change anything??) or are you actualy injecting money into the TSP by changing your payrole allotment.
Its not clear how you actualy doing the mechanics of it.
Thanks

 

[nasa1974]

Re: <1%IFT Option

I think I understand how it works, but how do you actualy make the IFT. Do you make an IFT but leave the percentages as they are, forcing the system to recalculate them. (isn't that considered an IFT even though you didn't change anything??) or are you actualy injecting money into the TSP by changing your payrole allotment.
Its not clear how you actualy doing the mechanics of it.
Thanks

AM, You are talking about a <1% IFT, correct?

 

[Aule Mar]

Re: <1%IFT Option

Yes! You said there were no dumb questions
Thanks

 

[nasa1974]

Re: <1%IFT Option

Yes! You said there were no dumb questions
Thanks

There are no dumb questions. Sometimes the answers do not make sense.

You make a <1% IFT just like you would a normal IFT. As long as your pecentages are between .01 and .99 you can either round up or down your percentages. Remember when you make an IFT it has to be whole numbers and equal 100%. You will find a better explaination if you go to the last page and read the first couple of responses. We are all here to teach and learn. Keep asking questions.

 

[Guest2]

Re: <1%IFT Option

"how do you actualy make the <1%IFT"
Just like any other IFT. By going to the TSP web
site and changing your percentages.

"Do you make an IFT but leave the percentages as they are"
You can leave the percentages as they are, but remember,
if your percentages show a number greater then OR less then
a whole number you can increase the percentages up to the
next whole number. ie... 1.01%--->2.00%,,,0.99%--->1.00%

"isn't that considered an IFT even though you didn't change anything"
Yes, every <1%IFT is considered a IFT, even if you keep the %'s
the same. By keeping the percentages the same, your treating
the account just like an L Fund and simply rebalancing your total
account to reflect the same percentages for the next day. Shares
will increase or decrease depending on the market going up or
down on the day you do the <1%IFT.

"are you actualy injecting money into the TSP by changing your payrole allotment"
Your taking new money from your paycheck and purchasing shares at
the closing price, on the day it actualy goes in.

"Its not clear how you actualy doing the mechanics of it"
As Nasa said in the previous post, check back and read the previous posts.
If you can't find the answer you seek, my thread has alot of information
"Squalebear's Account Talk" buried within it. But that will take alot of
searching. A better suggestion would be to keep asking questions.

Please do not make any decisions concerning your account by doing a <1%IFT until you have a firm understanding of how this affects your share amounts, dollar amounts and risk. This method was designed by me to beat the (G) Fund, in lieu of going to the (G)arage. But there's a good chance that you can still lose money while attempting this. Should you reach your goal on the very first day, it may be a better idea to flee this method and jump back into the (G) Fund before its too late.

 

[Guest2]

Re: <1%IFT Option

Should you reach your goal on the very
first day, it may be a better idea to flee this method and jump back
into the (G) Fund before its too late.

But the door swings both ways. I bailed out just recently
and missed out on some very nice gains.

 

[Handballer]

Re: <1%IFT Option

Top Views in the Last 10 days:

<1%IFT Option 1292
March Madness 2009 999
Where is my Bonus? 868
Market Talk /... 194
Handballer's... 191
Postal: 150,000... 154
Diving into the MB 139

Not too shabby ! There appears to be interest by the membership.
I'm feeling better and better about making this Thread. Thanks All !

I am honored to make the list. Now I want to make the top 10 on the tracker. Its hard to do with only 8% in the CSI funds. Even so, this week I am up .72%. Squalebear thanks for your advise on the <1%IFT Option.

 

[Guest2]

Re: <1%IFT Option

I am honored to make the list.
It was the web sites breakdown for the past 7 days.
Now I want to make the top 10 on the tracker.
You and me both, my friend.
Its hard to do with only 8% in the CSI funds.
Risk Tolerance, Impending Retirement...You name it ! Its gotta be right for you !
Even so, this week I am up .72%.
Figure out how many weeks that .72% would take to get in the (G)
Fund. That always puts a smile on my face !

Squalebear thanks for your advise on the <1%IFT Option.

Thank you for letting me know it's appreciated and helps !

 

[Guest2]

Re: <1%IFT Option

With April right around the corner, I'm trying to find the time to develope
some sort of "What If" breakdown concerning the <1%IFT method. This
could be used as a reference guide. Stay Tuned !

 

[FUTURESTRADER]

Re: <1%IFT Option

It looks like I was able to bump up from 1.00% to 2.00% on a couple of funds** because I bumped up a partial percentage on some other funds. It looks like a special case, like special relativity I.e.:

L2040 1.01%--->2.00
L2030 1.01%--->2.00
L2020 1.01%--->2.00
L2010 1.00%--->2.00 **
L Inc 1.00%--->2.00 **

G 91.93%--->84.00
F 0.00%--->0.00% (doesn't look like you can go from 0.00%--->1.00%)
C 1.01%--->2.00%
S 1.03%--->2.00%
I 1.00%---->2.00% **

Unfortunately, it looks like you need to have some partial percentage in at least one other fund, AND/OR maybe the G fund, to bump the othe funds up a whole percentage point.
Now that all my funds are at whole percentages, I was hoping to bump them up another 1 whole % each on Monday, i.e. 2.00% --->3.00%, but....not. Just tried it, same as trying it Monday morning.

 

[Guest2]

Re: <1%IFT Option

It looks like I was able to bump up from 1.00% to 2.00% on a couple of funds**

FT, I'm extremely interested in the funds you had 1% in,,,,then,,,,bumped
it up to 2%. You see, It's been my experience that a whole percentage
could not be raised unless you had a regular IFT left for the month. By
all means, please double check that for me. The funds with x.01% and
x.03% are not surprising as your adding x.99% and x.97% (respectively)
which can be done because they are <1% (ie..the name of my method).

There is a possibility that the number of funds that you were able to
bumped up gave their software "fits" (ok, ok, I stop chuckling).
Should this all hold true when you check the site on Monday, please
give us an update.

 

[Guest2]

Re: <1%IFT Option

One last thing, gotta hit the sack !

On Monday, all of your percentage will be whole numbers. The only
options you have before noon are;

a)Hope for an up day and leave your account alone. This will drive your
percentage above the 2% mark for some Tuesday <1% action to 3%.

b)Do another <1%IFT utilizing the same percentages. If Monday ends
down, you purchased more shares at a cheaper price. If the Market
end up, you took the gains and added them into the (G) Fund and
you'll have the same percentages on Tuesday, that you had on Monday.
This comes in handy when you lean towards the market being negative.

c)Lower your percentages back to the 1% level.

I'm cross-eyed and gotta fly. Please Keep us Updated !

 

[Guest2]

Re: <1%IFT Option

I worked on this Guide over the weekend in hope it comes in clear enough
for those who open the link or save it to their computers. It was developed
using Wordperfect, however, I converted it to Microsoft Word so that the
membership would be able to gain access to it. Simply click on the link
below and save it to your harddrive or open it with your Microsoft Word
software. Let me know if you come across any problems and don't forget,
questions are welcomed.

View attachment 6116

 

[Handballer]

Re: <1%IFT Option

I worked on this Guide over the weekend in hope it comes in clear enough
for those who open the link or save it to their computers. It was developed using Wordperfect, however, I converted it to Microsoft Word so that the membership would be able to gain access to it. Simply click on the link below and save it to your harddrive or open it with your Microsoft Word software. Let me know if you come across any problems and don't forget, questions are welcomed.

View attachment 6116

I couldn't open the document - got a lot of this stuff:
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{-Ñ?"ͽb7œÖ9ÊVmíU
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>[õÆÍÚ!Á¶} dêMª^;8ýyªFŸ3´hÿCòðK—²¹pþý„Ï Þü …|/N"Vi³ Íù\´
I don't have Word but usually do not have a problem opening Word documents.

I did my first IFT <1%er today. Previously: 91.57G, 3.17C, 3.19S and 2.07I. Changed to 92G, 3C, 3S, and 2I. It was accepted. I'll report results tomorrow.

Thanks for all your hard work on this project. We appreciate it.

 

[steveg]

Re: <1%IFT Option

squalebear --

Thanks to your help I did my first <1% IFT today! With the market looking like it will finish down pretty good today, I would possibly have bought some into C if I had any IFTs left. So, I did the <1% trick!

Balances before the IFT:

6.94% F
5.68% C
2.11% S
2.06% I
83.21% G

Balances after:

7% F
6% C
3% S
3% I
81% G

Not a big deal, but it is interesting nonetheless...

Steve

 

[Guest2]

Re: <1%IFT Option

I couldn't open the document - I don't have
Word but usually do not have a problem opening Word documents.

Sorry for the confusion. Its a Wordperfect document (.wpd)
If you had MS Word, it would reformat the document to (.doc)
automatically. Unfortunately, the Word document was 31kb
and too large to upload to TSPTalk. The Wordperfect document
was only 16kb and uploading was allowed. Boy what a mess.
I'll try to fix this A.S.A.P. for those who are experiencing the
same kind of problem.

I did my first <1%IFT today. Previously: 91.57G, 3.17C, 3.19S and
2.07I. Changed to 92G, 3C, 3S, and 2I. It was accepted. I'll report results tomorrow.

Ok, so on a day like today, (still in question) you decided lower your
Risk Percentages back down to the next lowest whole number. If
today does end down, you might be taking some of your profits and
and locked them into the (G) Fund. But how much are your Funds
down today? That is something that you need to know before noon.

**Example Based on Your Info:
Your (C) Fund currently has 3.17% in it. If your (C) fund is down
more then -0.17%, then you are actually buying more shares
at a cheaper price and should see an increase in the number of
shares that you own come tomorrow. If the (C) doesn't lose that
much, your actually selling your profit and putting those dollars
back into the (G). You should notice a decrease in the amount of
shares come tomorrow, if that holds true.

Thanks for all your hard work on this project. We appreciate it.

If I can find a way to capture my document and make it a (.jpg) then
I can post it for everyone to see it within this thread. I'll work on it.

If I had your percentages today AND felt tomorrow held a rebound,
I would have done a Boost <1%IFT up to: 89%-4%-4%-3%. But
if I believed the market was going down alot more then just today,
I would have dropped my percentages down to 1%. If I was wrong
and the market went up tomorrow, I knew that on Wednesday I
could boost them back up to 2%. Food For Thought.