2 IFT maximum - 19 November proposition

[kaitlinsnana]

Looks like the TSP made the decision today to restrict interfund changes to two a month -- and it seems one additional change back to "G". If this doesn't change, what allocation would be optimal?

I'm really bummed about this. I've had a bad month, but I really resent their taking it away.

Gail

 

[fedgolfer]

Re: Griffin Account Talk

Looks like the TSP made the decision today to restrict interfund changes to two a month -- and it seems one additional change back to "G". If this doesn't change, what allocation would be optimal?

I'm really bummed about this. I've had a bad month, but I really resent their taking it away.

Gail

Are you FREAKIN' serious... I'm PO'd. Everyone should write or call their legislative reps and Department Secrataries and voice a loud disapproval.

THe best allocation would be IFT to 401(k) and deplete the value of a dying dog. Seriuosly though, people that know how to handle their money will max a $50k loan out as often as they can trade it on margin and then return the borrowed amount to TSP -- then, repeat the cycle every 3 months. That would probably cost TSP more then unlimited IFTs, I hope they know that's what they'll get from the aggressive traders.

 

[fedgolfer]

Re: Griffin Account Talk

what a bunch of idiots. They don't even know the definition of a "day trader." Even how TSP IFTs exist now, it is impossible to day trade. Schmucks.

 

[kaitlinsnana]

Re: Griffin Account Talk

Any lawyers here?

Gail

 

[fedgolfer]

Re: Griffin Account Talk

Any lawyers here?

Better yet, get Goldman Sachs/Barclays/and MSCI on this thread... they'll be upset the TSP board is taking away market liquidity.

 

[kaitlinsnana]

Re: Griffin Account Talk

I don't know where to start... This is just stunning. It was just hanging around the damn post office because of the freedom of playing around with my TSP account.

Had to take my emergency Xanax tonight. I'm pissed.

Gail

 

[kaitlinsnana]

Re: Griffin Account Talk

The Federal Retirement Thrift Investment Board approved the restrictions Nov. 19 as part of an effort to curb what it called excessively frequent transfers. A board study released at its monthly meeting showed that about 3,000 of the 3.8 million TSP enrollees are frequently shifting billions of dollars from plan to plan, sometimes on a daily basis.
Board chairman Andrew Saul said the practice amounts to day trading. The board said the excessive transfers are hurting TSP by driving up transaction expenses from $2.2 million in 2004 to more than $15 million in 2006.
The board also will send letters to the 3,000 frequent traders in December telling them to cut back on their transfers. If they don’t, the board will take away their abilities to trade online, and they will have to physically mail in their transfers.

3,000 people out of 3.8 million made such a difference in their expenses. I simply don't believe it.

Gail

 

[airlift]

Re: Griffin Account Talk

I hope you are right. This approach might be the best alternative substitute, instead of having to pay for an expensive lobbying group to be our spokespeople before The Congress.

Better yet, get Goldman Sachs/Barclays/and MSCI on this thread... they'll be upset the TSP board is taking away market liquidity.

 

[mayday]

Re: Griffin Account Talk

I hope you are right. This approach might be the best alternative substitute, instead of having to pay for an expensive lobbying group to be our spokespeople before The Congress.

How about the union. I belong to the APWU. They are changing our retirement without talks or arbitration. Sounds like a grievance to me. An award in our favor would get paid back in a cash settlement. I think all the unions would back this, and they are good lobbyists.

 

[Show-me]

Re: Griffin Account Talk

How about the union. I belong to the APWU. They are changing our retierment without talks or arbitration. Sounds like a grievance to me. An award in our favor would get paid back in a cash settlement.

I too am APWU and I can't get my mind around how we would file a grievance against TSP as they are not USPS. It would have to be a class action lawsuit.

 

[mayday]

Re: Griffin Account Talk

I too am APWU and I can't get my mind around how we would file a grievance against TSP as they are not USPS. It would have to be a class action lawsuit.

They mess with your money. They mess with the union. Its all about control. The control of our finances has been taken away by an entity that does not have our best interest {pun included} at heart.

 

[Geaux4it]

Re: Griffin Account Talk

Let's face it folks, every since the Government forced fed the 2-cent FERS retirement sysytem on us we have been hosed. Considering Social Secrurity is part of our retirement, the only bright spot, was TSP. It had the flexibility to look out for my/our's best interest which made it even more attractive. FERS is now officially broke. The government needs to come out with a more comprehensive retirement sysytem.


Geaux

 

[Steadygain]

Re: Griffin Account Talk

Any lawyers here?

Gail

This is certainly not want anyone wants to hear but I can guarantee you if they really wanted to play fair, and by that I mean the way Merril Lynch and all the other accounts I have traded in - they would charge everyone one of us a percentage on our transfers everytime we trade. For those of us who frequently trade at 100% - all the more they would rake in the bucks.

BTW Gail, I think you're pretty cool and I'm not saying this to bother you or anyone else. Legally, I have always wondered how I can make daily transfers (usually obtained very nice gains) and never have to pay a penny for doing it.

 

[nnuut]

Re: Griffin Account Talk

The Federal Retirement Thrift Investment Board approved the restrictions Nov. 19 as part of an effort to curb what it called excessively frequent transfers. A board study released at its monthly meeting showed that about 3,000 of the 3.8 million TSP enrollees are frequently shifting billions of dollars from plan to plan, sometimes on a daily basis.
Board chairman Andrew Saul said the practice amounts to day trading. The board said the excessive transfers are hurting TSP by driving up transaction expenses from $2.2 million in 2004 to more than $15 million in 2006.
The board also will send letters to the 3,000 frequent traders in December telling them to cut back on their transfers. If they don’t, the board will take away their abilities to trade online, and they will have to physically mail in their transfers.

3,000 people out of 3.8 million made such a difference in their expenses. I simply don't believe it.

Gail

Now this I agree with! Someone needs to audit these numbers! There is plenty of money to Pay the contractors that handle the money and we have the lowest yearly cost for a member of any other similar retirement fund that I know of.
What is the big problem?:nuts:
Someone isn't getting as much money as they would like, I guess?

 

[Griffin]

Re: Griffin Account Talk

The Federal Retirement Thrift Investment Board approved the restrictions Nov. 19 as part of an effort to curb what it called excessively frequent transfers. A board study released at its monthly meeting showed that about 3,000 of the 3.8 million TSP enrollees are frequently shifting billions of dollars from plan to plan, sometimes on a daily basis.
Board chairman Andrew Saul said the practice amounts to day trading. The board said the excessive transfers are hurting TSP by driving up transaction expenses from $2.2 million in 2004 to more than $15 million in 2006.
The board also will send letters to the 3,000 frequent traders in December telling them to cut back on their transfers. If they don’t, the board will take away their abilities to trade online, and they will have to physically mail in their transfers.

3,000 people out of 3.8 million made such a difference in their expenses. I simply don't believe it.

Gail

Wasn't it 2004 when you could only rebalance your account once a month? (Is that accurate) and now they are comparing that to 2006? Doesn't seem apples to apples to me The reason that TSP was criticized for being overweight in the G-fund, was that folks could not move out of the stock market in a crisis under the once a month system.

If they don't count move's into the G-fund as part of your two, then that does in, essence give you 4 moves a month - 48 per year. We could still effectively manage our TSP accounts under these conditions, but 3 into stocks and 3 into the G would be a significant improvement.

 

[kaitlinsnana]

Re: Griffin Account Talk

There are some big brains here, not mine, but surely we can come up with a course of action.

Reminds me of a Hank Jr song 'BRING LAWYERS, GUNS AND MONEY 'CAUSE THE **** HAS HIT THE FAN".

I'm going to go to work now with the best attitude I can muster - secure in the knowledge that when I get home tonight, these big brains will have some ideas to bounce around to at least bring attention to our situation.

A small fee for transfers seems reasonable. If our little band of 3,000 made such a difference in operating costs, charge us a fee. They need to come clean about the real reasoning behind their decision. A few months ago, they talked about protecting us from ourselves.

What is the real reason?

Gail

 

[fabijo]

Re: Griffin Account Talk

They need to come clean about the real reasoning behind their decision. A few months ago, they talked about protecting us from ourselves.

What is the real reason?

Gail

Maybe the TSP employees were told they will not get as big a raise as they hoped for because they did nothing to lower the expenses of the funds. Maybe their contract has something in it about meeting some goals by the end of the fiscal year.

 

[presskh]

Re: Griffin Account Talk

There are some big brains here, not mine, but surely we can come up with a course of action.

Reminds me of a Hank Jr song 'BRING LAWYERS, GUNS AND MONEY 'CAUSE THE **** HAS HIT THE FAN".

I'm going to go to work now with the best attitude I can muster - secure in the knowledge that when I get home tonight, these big brains will have some ideas to bounce around to at least bring attention to our situation.

A small fee for transfers seems reasonable. If our little band of 3,000 made such a difference in operating costs, charge us a fee. They need to come clean about the real reasoning behind their decision. A few months ago, they talked about protecting us from ourselves.

What is the real reason?

Gail

Gail,

I agree that a a small fee is not unreasonable. However, it seems that this fee should fairly be charged for all transactions, with no "free" ones allowed. This way, those who make no transfers do not get penalized, but those of us who more actively manage our accounts would still have the freedom to change based on market conditions. However, on another point, since the L Funds most likely cost the TSP more to operate than the standard funds (due to their daily rebalancing), shouldn't participants in these funds also be required to pay a surcharge to cover the additional costs?

 

[airlift]

Re: Griffin Account Talk

We need all the help we can get!

 

[Griffin]

Re: Griffin Account Talk

Gail,

I agree that a a small fee is not unreasonable. However, it seems that this fee should fairly be charged for all transactions, with no "free" ones allowed. This way, those who make no transfers do not get penalized, but those of us who more actively manage our accounts would still have the freedom to change based on market conditions. However, on another point, since the L Funds most likely cost the TSP more to operate than the standard funds (due to their daily rebalancing), shouldn't participants in these funds also be required to pay a surcharge to cover the additional costs?

The L-funds are fixed percentages of the five main funds, I don't think there is an expense with those prices. I more inclined to believe a huge chunk of the additional costs are associated with the I-fund's Fair Valuations. If that's the case they should place the limit there.

The problem with there costs, is that they either blame it on additional IT requirements (in which case the infrastructure is already there, now - and replacement costs are minimal, with IT the big cost is in setting the system up initially) or they blame it on salary/personnel costs, so how much of their staff are they going to be able to fire if they make this adjustment?

What's it going to cost them in 2007now that the infrastructure is in place? and if they implement this system are they going to report the cost savings for 2008 and 2009?

Transfer fees - ok - Scotttrade 7$ a trade.