< 1 pct. IFT Question

[Longstreet]

Re: Longstreet's Account Talk

Question about <1% transfers.

Scenario:

Total Account Balance: $100,000
G Fund: $80,000 (80%)
C Fund:20,000 (20%)
Interfund Transfers completed for the month: 2

I have used up all my Interfund transfers for the month but man, the market is tanking and I want to buy into it. However, it's Friday and I am getting $400 bucks contributed into my TSP. For that contribution, I do:

$100 (25%) L2050
$100 (25%) L2040
$100 (25%) L2030
$100 (25%) L2020

Now, I have amounts in each, but only .001% of my total in each L Fund and I'm not even sure that it would show up as a percentage on my TSP homepage. Anyway, can I do a transfer to 1% for each one of them since I do have a balance in each? Or, is there some kind of .01% threshold? Bueller, Bueller, Bueller.....?

 

[eccougar]

Re: Longstreet's Account Talk

Question about <1% transfers.

Scenario:

Total Account Balance: $100,000
G Fund: $80,000 (80%)
C Fund:20,000 (20%)
Interfund Transfers completed for the month: 2

I have used up all my Interfund transfers for the month but man, the market is tanking and I want to buy into it. However, it's Friday and I am getting $400 bucks contributed into my TSP. For that contribution, I do:

$100 (25%) L2050
$100 (25%) L2040
$100 (25%) L2030
$100 (25%) L2020

Now, I have amounts in each, but only .001% of my total in each L Fund and I'm not even sure that it would show up as a percentage on my TSP homepage. Anyway, can I do a transfer to 1% for each one of them since I do have a balance in each? Or, is there some kind of .01% threshold? Bueller, Bueller, Bueller.....?

http://www.tsptalk.com/mb/tsp-transactions-q/7825-1%-ift-option-read-only.html

 

[nasa1974]

Re: Longstreet's Account Talk

Question about <1% transfers.

Scenario:

Total Account Balance: $100,000
G Fund: $80,000 (80%)
C Fund:20,000 (20%)
Interfund Transfers completed for the month: 2

I have used up all my Interfund transfers for the month but man, the market is tanking and I want to buy into it. However, it's Friday and I am getting $400 bucks contributed into my TSP. For that contribution, I do:

$100 (25%) L2050
$100 (25%) L2040
$100 (25%) L2030
$100 (25%) L2020

Now, I have amounts in each, but only .001% of my total in each L Fund and I'm not even sure that it would show up as a percentage on my TSP homepage. Anyway, can I do a transfer to 1% for each one of them since I do have a balance in each? Or, is there some kind of .01% threshold? Bueller, Bueller, Bueller.....?

In simplest terms the <1% allows you to round up or round down to the nearest whole number. Since the "L" funds are such a low percentage I'm not sure you could do anything there. But an example would be your "G" fund is 79.8% and "C" fund is 20.2%. You can do an IFT and it would look like this "G" fund 19% and "C" fund 21%. Your total account has to equal 100%. So you are not really moving large sums. Just balancing the account.

I'm not sure why you would DCA money across all 4 "L" funds but you must have a reason why.

Good luck.

 

[tsptalk]

Re: Longstreet's Account Talk

I'm not sure why you would DCA money across all 4 "L" funds but you must have a reason why.

The 1%'ers D) do that so they can move 1% to each of those funds. I don't believe you can move 1% to a fund if there's 0% in it to start. So if you have something in C, S, I and each of the L-funds, you can move 1% to all of them. If you had nothing in the L-funds you can only do it in C, S, and I. Someone can correct me if I'm wrong about that.

 

[Cactus]

Re: Longstreet's Account Talk

I think Longstreet's original question amounts too how little can you have in a fund and have it not be zero. He is using a payday contribution into these funds to allow him to perform a 1% move. He is worried that a contribution from 1 paycheck won't amount to much in a fund if it started with zero percent. It's like asking if he can balance a fund from 0.0000001% up to 1.0%. How small can a percentage get before it is considered 0%. I don't know the answer to that one. Mathematically 1 cent should be enough, but given the limits of the software you may have to test this empirically.

 

[nasa1974]

Re: Longstreet's Account Talk

The 1%'ers D) do that so they can move 1% to each of those funds. I don't believe you can move 1% to a fund if there's 0% in it to start. So if you have something in C, S, I and each of the L-funds, you can move 1% to all of them. If you had nothing in the L-funds you can only do it in C, S, and I. Someone can correct me if I'm wrong about that.

Tom,

You are correct. You cannot move into a fund that is 0% using the <1% option.

 

[Longstreet]

Re: Longstreet's Account Talk

I think Longstreet's original question amounts too how little can you have in a fund and have it not be zero. He is using a payday contribution into these funds to allow him to perform a 1% move. He is worried that a contribution from 1 paycheck won't amount to much in a fund if it started with zero percent. It's like asking if he can balance a fund from 0.0000001% up to 1.0%. How small can a percentage get before it is considered 0%. I don't know the answer to that one. Mathematically 1 cent should be enough, but given the limits of the software you may have to test this empirically.

This is exactly right. The reason I ask is that I am figuring out all the options that I have against different scenarios. For example, if I use up all of my interfund transfers early in a month and then the market tanks and I want to buy a little, what options do I have? This isn't part of some larger strategy, but just an option to possibly have. The more L funds I can do that with, the more C/S/I I can buy into when otherwise I would be shut out. Thanks to all!

 

[Skorcher]

Re: Longstreet's Account Talk

The 1%'ers D) do that so they can move 1% to each of those funds. I don't believe you can move 1% to a fund if there's 0% in it to start. So if you have something in C, S, I and each of the L-funds, you can move 1% to all of them. If you had nothing in the L-funds you can only do it in C, S, and I. Someone can correct me if I'm wrong about that.

I searched high and low for a publication on tsp.gov which covers this less than 1% rebalancing and cannot find anything. TSPLF14 at https://www.tsp.gov/PDF/formspubs/tsplf14.pdf
covers monthly IFT limits and mentions daily rebalancing of the L funds but nothing on individuals rebalancing their funds. I understand the concept, but never knew you had to have money in C, S and I OR C, S, I and all the L Funds to do this.
:blink:

 

[tsptalk]

Re: Longstreet's Account Talk

It's not something they advertise, and I believe it was first stumbled upon by one of our members several years ago.

http://www.tsptalk.com/mb/tsp-transactions-q/7825-1%-ift-option-read-only.html

:27:

 

[uscfanhawaii]

Re: Longstreet's Account Talk

I searched high and low for a publication on tsp.gov which covers this less than 1% rebalancing and cannot find anything. TSPLF14 at https://www.tsp.gov/PDF/formspubs/tsplf14.pdf
covers monthly IFT limits and mentions daily rebalancing of the L funds but nothing on individuals rebalancing their funds. I understand the concept, but never knew you had to have money in C, S and I OR C, S, I and all the L Funds to do this.
:blink:

Just to clear up any possible confusion...you only need to have $ in the funds you want to 'play' with. Not necessarily 'ALL' the funds.

And no, this is not a TSP 'feature'. More like a loophole. I was chastised by other members earlier on because they didn't want the FRTIB to get wind of it and they thought I was getting too detailed about it in the Forum. Best way to see what you can do is to just try it. If you ask to do an IFT that does not follow the rules, it will simply deny your IFT request. It is a 'rounding' IFT, so can only be done every other day, since when you put it in, all of the funds are put in as whole %'s. (and consequently if you have 0% in a fund, you will not be able to do the <1% IFT.)

Me and Chess Guy were doing a lot of this a while back. I have pretty much abandoned the approach. Since it happens at the end of the day, and the IFT has to go in before 12, you often don't know if it will round up or down. (PM me if you want some examples) Plus, they are such small amounts, it is difficult to track if you are gaining or losing on the IFTs. Or even if it matters at all. (and if you REALLY want to blow your mind, I can give you examples of where you will be able to do a >1% move by asking for a <1% IFT....and again, you may not even know if you will be getting a >1% BUY or a >1% SELL! :nuts: ) Anyway, I decided it wasn't worth it. But you can, of course make up your own mind on it. :scratchchin:

 

[Guest2]

Re: Longstreet's Account Talk

uscfanhawaii

Hi, My name is Squalebear and I'm the Retired and Rarely Seen Member of TSPTalk that introduced the <1% method of IFT's many years ago. In fact, it was directly after the Limits were imposed on all TSP Participants. I'm writing this because after reading your post, it gives me great pleasure to see that it is still a point of conversation and debate. I can remember feeling so screw'd over the imposition of Limits, that any positive that I could find, was a welcomed one. In fact, I love the fact that members are still figuring out what was so difficult to explain in simple terms within my posts. That being, by utilizing the <1% IFT, you can actually move >1% without having any IFT's left for the month.

Ultimately, my goal was to help members make the most out of a glitch that the FRITB had little or no control over. My one finger solute (if you will) to those who took Thousands of Dollars out of the hands of its Participants. My young padewon (star wars reference) .... Nasa1974 has kept the flame burning in my memory and I wanted to take this rare opportunity to post something more then just my Granddaughters pictures AND this appeared to be the perfect place. God Bless and Kick that TSP Account in the @$$.

 

[nasa1974]

Re: Longstreet's Account Talk

uscfanhawaii

Hi, My name is Squalebear and I'm the Retired and Rarely Seen Member of TSPTalk that introduced the <1% method of IFT's many years ago. In fact, it was directly after the Limits were imposed on all TSP Participants. I'm writing this because after reading your post, it gives me great pleasure to see that it is still a point of conversation and debate. I can remember feeling so screw'd over the imposition of Limits, that any positive that I could find, was a welcomed one. In fact, I love the fact that members are still figuring out what was so difficult to explain in simple terms within my posts. That being, by utilizing the <1% IFT, you can actually move >1% without having any IFT's left for the month.

Ultimately, my goal was to help members make the most out of a glitch that the FRITB had little or no control over. My one finger solute (if you will) to those who took Thousands of Dollars out of the hands of its Participants. My young padewon (star wars reference) .... Nasa1974 has kept the flame burning in my memory and I wanted to take this rare opportunity to post something more then just my Granddaughters pictures AND this appeared to be the perfect place. God Bless and Kick that TSP Account in the @$$.

Jedi Master. You are to kind.