Allocations, Contributions, and IFT Question

[PlantMan]

Just seeking advice. I think i was confusing what i do with the "contributions' and the "Interfund transfers" in the TSP. I believe i switched between the two. i saw what the the market was doing at the beginning of may so i felt i needed to get out of the C & I (somewhat the S) and move into the F & G.

Is the "contributions" where you put your nest egg and the IFT where you wish to play (buy and sell)? Considering the above scenoario, i think i used the IFT as to where i put my existing funds in. Well, i lost a considerable amount. now i know we should stick with it, and I am, but i just want to be sure i am using the "contributions" and the "IFT" correctly.

thanks

 

[DakotaKid]

Re: Last Month's Best Fund Method Strategy

Changing your Contribution only changes what you contribute, or add, to your account each pay period. Making an intrafund transfer moves the existing money in the account around.

As an example: Making an intrafund transfer today to move 100% out of C and into 100% G, would move all of the money in your account from the C fund to the G fund today, at the close of business. Making a Contribution change today from 100% C to 100% G will simply place your addition FROM YOUR NEXT PAY CHECK (and any matching) into the G fund, rather than the C fund.

Hope this helps!

DakotaKid

 

[Scout333]

Fellow TSP'rs, I am paying off the balance on a TSP Loan used as part of a down payment on our new house in the country. Repayments are normally allocated based on my contribution allocation to C 30% S 30% and I 40% funds. I use it as a way to DCA in when the market is sliding downward. I noticed the repayment has cleared my bank account but has not posted in my TSP account.

Question is- Since market is up today I really don't want to purchase shares of the C,S, and I funds at today's COB share prices. Appears the repayment will likely be posted at today's COB share prices. If I change my allocation to G or F will I be able to avoid today's increase in share prices. Changes to contribution allocations made before 12:00 noon EST are supposed to post at COB today (6-10-2010).

Has anyone tried this tactic and how did it turn out? Thoughts?

 

[tsptalk]

Has anyone tried this tactic and how did it turn out? Thoughts?

I don't know how that works, sorry. And sorry for the late response. Pretty savvy of you as I don't think most would even think about taking advantage of that situation.

 

[Scout333]

Thanks Tom, It actually worked out as I hoped it would. Figured I didn't have anything to lose. Now, I just have to find a good place to get back in. That's the question! This week may be a good time but I only have 1 IFT left to burn.

 

[nnuut]

Welcome to the Message Board PlantMan!!!
Best of luck!
Norman