350Z's I fund thread NOV 07

[Trouble]

Okay, fine. Then allow me to immediately roll-over my TSP account to an IRA and I'll pay my $10 transaction fee to TDAmeritrade. That'll save you clowns a lot of money.

I believe you are entitled to a one time penalty free transfer.
Several months ago I spoke with a financial planner (skeery) and he 'highly' recommended that I move out of the TSP and into another plan.
I plan on voicing my concerns to the right people and, if this TSP highjacking stands the course and it becomes difficult for me to manage my account profitably, I will seriously consider a pull out.

 

[qibovin]

I believe you are entitled to a one time penalty free transfer.

I don't believe that applies if you are still currently employed.

 

[Trouble]

I'll try and get clarification on this.
I seem to recall this guy telling me it was possible, that I was entitled to a one time transfer of my TSP into another financial plan while still employed.

 

[350zCommTech]

350 does G pay today or tomorrow...best guess?

It should pay today and at least the next 4 Mondays (possibly 5).

I agree that it will pay tonight but not sure about the next 4 Mondays.

 

[350zCommTech]

I have the I fund down 2-3 cents, including a 13 cent +FVC.

 

[Talltimber]

I have the I fund down 2-3 cents, including a 13 cent +FVC.

13 cent +FVC, does that mean the share price is increased 13 cents? I know silly new be question.

 

[tspgo_com]

13 cent +FVC, does that mean the share price is increased 13 cents? I know silly new be question.

He is referring to an FV correction. The +FV was given on 11/23/07 and it is being corrected today.

Good luck to all!

 

[350zCommTech]

I funders, get out the Vaseline. Barclay's coming...

I'll guess 31 cent -FV.

Total = -32 cents.

 

[350zCommTech]

I funders, get out the Vaseline. Barclay's coming...

I'll guess 31 cent -FV.

Total = -32 cents.

Down 33 cents. We got a 32 cent -FV.

 

[James48843]

32 cent fair value.

Quick -someone do the math. We have roughly 18 billion dollars in the I fund.

How many shares is that?

And then, how many shares times .32 cents?

That is how much Barclays is GUESSING today, because the market is not yet open in Japan when they decided that.

What if they guess wrong by 5%? How much difference will that be? In real dollars?

Now the market IS open. And most of Asia will be before midnight. And if they wait until 6 am. tomorrow morning to price the I fund before the markets open tomorrow, they will know exactly what the true cost will be.

Someone do the math please- let's see how today shapes up for possible error.

 

[350zCommTech]

32 cent fair value.

That is how much Barclays is GUESSING today, because the market is not yet open in Japan when they decided that.

What if they guess wrong by 5%? How much difference will that be? In real dollars?

James,

You're going in the wrong direction. The FV process is not a guess. For us it is, but not for Barclay.

Now the market IS open. And most of Asia will be before midnight. And if they wait until 6 am. tomorrow morning to price the I fund before the markets open tomorrow, they will know exactly what the true cost will be.

The I fund does not work that way.

 

[RAE]

James,

You're going in the wrong direction. The FV process is not a guess. For us it is, but not for Barclay.

The I fund does not work that way.

OK, Z, you are the acknowledged FV expert here. In your opinion, is the so-called problem with escalating costs in trading TSP funds (particularly the I fund, which is the example they use) related to the way FV is calculated by Barclay's, or not? We could really use your expertise and guidance here, as we try to fight this proposal to restrict IFT's to two per month.

 

[easting]

Good lord it makes no sense to me. I was I today, I guess I got hosed...I think.

 

[Rustynutt]

I can't believe that three thousand people caused this issue.

It only took 1200 patriots June of 1775......

 

[350zCommTech]

OK, Z, you are the acknowledged FV expert here. In your opinion, is the so-called problem with escalating costs in trading TSP funds (particularly the I fund, which is the example they use) related to the way FV is calculated by Barclay's, or not? We could really use your expertise and guidance here, as we try to fight this proposal to restrict IFT's to two per month.

IMO, NO, the "escalating costs" has nothing to do with the FVs of the I fund. The FV process is just an equalizer. Today for example, they took money from people leaving the I fund(like me) and gave it to people buying the I fund tonight.

The "escalating cost" with the I fund probably has more to do with the fact that the I fund is the most popular fund to trade. Hence, this thread's popularity.

I have not read what they said, but did they actually give $ figures or a % increase in trading cost? Or are they just going buy the increase in trades? A while back, I read somewhere that the total cost to TSP were very low. I'm just wondering if there's a real basis for their concern. My opinion is that they are just a bunch of idiots that think they have a duty to protect us. What we need to know is what right do we have on controlling our TSP?

 

[James48843]

350z-

go stroll over to the TSP NEWS thread, and start at the beginning.

http://www.tsptalk.com/mb/showthread.php?t=5143


Yes, the are saying, and have numbers to say, that the trading costs have gone from 2 million in 2004, to 25 million in 2006, and they are saying that it is because of us "3000" traders. We know there is more to the story, but you have to read both the thread, and the hot links within the thread, to get the whole story.


And then when you look at the data sheets, you'll see that they are talking about the problems with the Fair Value process- that , for example, on March 5th of this year, Barclays FV calculation missed by 8 million dollars- IN FAVOR OF TSP SHAREHOLDERS, and that the next month a FV call went the other way, and it once again was even.

Read the thread.

FV is a GUESS at what the orders will execute at, when the foreign markets open up overnight.

Please read that whole thread.

thanks

 

[Talltimber]

Asia is going down,

 

[350zCommTech]

FV is a GUESS at what the orders will execute at, when the foreign markets open up overnight.

Please read that whole thread.

thanks

Ok, now I understand what you were trying to say. Yes, it's a guess to even out the funds, but technically, the process is a calculation based on the market movements and the dollar. That's why we can guess to within a penny or 2 most of the time.

I will go read that thread, but perhaps their concern is really the fact that if we (all 3000 of us) can manage to steal these FVs on a consistence basis, we will be diluting the I fund's value for the rest of the folks that don't trade?

As for the cost going from 2 million to 25 million, how was that paid?:laugh:

 

[Talltimber]

Hey I lost 1/2 a percent when I sold Friday and it was corrected upward Monday. I'm not crying though, 2.2% gain beginning in I Tues and out Friday. Thanks TSPtalk for the nifty Thanksgiving seasonal chart.

I think the trick is to get better at seeing the forward looking indicators and don't sweat the backward looking indicators. Oh, yea, don't forget to not listen tothe guys in the spendy suits.

 

[350zCommTech]

Wow, huge rally attempt at the moment. The Yen carry trade is coming back with a vengeance. I didn't see any news. Perhaps somebody leaked a Fed cut tomorrow?

Or maybe they are just trying to save the market tomorrow, because if it drops tomorrow, we might see 1370 on the S&P and then it will be much uglier after that.

Tomorrow's I funders might get an early Xmas present thanks to today's -FV.

You're welcome...