Re: <1%IFT Option
To Whom This May Concern,
Welcome to April and the New Quarter.
We all have 2 unrestricted IFT's from now until the end of the month
and i couldn't help but think of all the possible strategies one might be
using while in this most unpredictable market. But that my friends, is
up to you.
When it comes time to make the decision as to whether you want to
Bail out of the Market, one might consider this little method of mine.
If that time comes and you decide to use the <1%IFT method, I want
you to consider the following;
#1) Although you only need one Risk Fund to do a <1%IFT, if you start
with only one, your stuck with only one until you utilize your Future
Contribution Allocations to add new money from your paycheck back
into a different fund.
#2) I tend to utilize 3 (C,S,I) or 4 (F) of the Risk Funds for diversification
purposes. Just as it's documented by the experts, a well balance portfolio
will help ease the agony of a down day. But it also lowers possible gains
on a up day. Should I feel stonger about Bonds I can reduce my stock
holdings and possibly boost my Bond holdings. But I will never reduce my
holdings below 1% unless I've given up on that fund and submit that fund
to the (G)arage.
#3) My first move might be considered extremely aggressive, but It's my
Second Move which is most important to the <1%IFT Levels I may want
before the month is through. This is evident in my March IFT's which can
be seen on the AutoTracker. But for those who don't have access, here's
the moves I made in March;
1st = 0-0-0-0-100
2nd= 50-10-5-10-25
3rd = 92-4-2-1-1
4th = 89-4-3-2-2
5th = 93-4-1-1-1
6th = 93-4-1-1-1 (rebalance)
7th = 89-5-2-2-2
8th = 100-0-0-0-0
Please take note that my 2nd move, although above my <1%IFT Levels, it
gave me the diversification I seek. This can be done at <1%IFT Levels as
well, but the point is this----> Your second move MUST include what ever
funds you want available for your eventual <1%IFT goals. On my 3rd move
I officially announced that I reached my <1%IFT Levels and started my
attempt to beat the (G) until I pulled the plug and bailed back to the (G)
Fund on my 8th move.
#4) There will always come a time when you will end up at a crossroad.
The (G) Fund does
NOT lose money. This method
CAN lose money. There's
no shame in accepting defeat at these levels. If the market hits the skids
and it becomes highly unlikely that you'll beat the (G) Fund, then by all
means, Jump Out before you suffer weeks of (G) Fund loses. March gave
me +0.4951% over and above the (G) Fund returns for the same 9 trading
day period,,,,OR,,,,10.68054 weeks of (G) Fund Returns. That gave me a
whole month that I could sit in the (G) and still be ahead. My goals are
not lofty. Even though I was playing with their money
(casino reference)
I try to always remember that "Pigs Get Slaughtered".
#5) Last but not least, please remember that sometimes, the right move
is
NOT making any move at all. Look ahead at all the data thats coming
out and
STILL do your homework. You just might allow your percentages
to go above a whole number and gain the ability to boost that fund up
by nearly 0.99% in a few days. Sometimes the Market will not want you
to do that by getting really ugly. But this is something I weigh out before
making a move.
#6) Making a <1%IFT on the same day as your Future Contributions are
kicking in is still a mystery to me just yet. I haven't done one and don't
know which takes priority over the other. So, I avoid doing so for now.
MAY WE ALL SEE A GREAT AND PROFITABLE APRIL ! MARCH WASN'T ENOUGH !
.
Granted the last two days the market soured and I my account dropped 3.75%. But by using the <1% option (the last two days) I used the G fund to purchase more shares in the CS&I funds. So I was able to use a higher priced fund to purchase shares in the lower priced funds. I decreased the G by 176.574 shares but increased C 122.3264, S 82.199 and I 17.2792. :toung: Does the increase in shares balance the drop of 3.75%? Only time will tell. 
