Another IFT timing question

[tspinny]

I've looked at several other questions about IFT's and thought I knew how they worked, but after the recent rally I'm not so sure. Here is my situation:

On Friday 09/29 I was 100% G.
On Monday 10/1 I did an IFT to 50%C 50%S. This was done around 8:57 am and was processed that day. The markets rallied about 1.5%.
I saw an account balance increase of about $800 (.5%)on Wednesday after everything was processed.
On Tuesday 10/2 I choose poorly and went 100% I. This was around 9 am and was processed that day. The I fund lost about .25% that day. I saw an account balance decrease of $500.

Questions:

Are your transfers "pro-rated"? In other words, if the market has already rallied 1% by the time your transfer takes place, do you only get what it makes the rest of the day, lets say .5%, or what the close is?

Does the markets open the next day have an influence before a transfer is made?

It just seems in the market looses, I take the brunt of the loss, but the rallies don't add up in my account. This is a great board and thanks to everyone who posts information here. Sorry if this is rehashing old info, but I'm new at IFT's and want to maximize my returns

Thanks

 

[DCguy]

I'm a nub, but I asked the same question and I think I know the answer to that. If you make an IFT before noon, it will be processed at 6pm for tomorrow, meaning you buy/sell at todays price and your funds are transfered for tomorrow's market.

 

[FUTURESTRADER]

I've looked at several other questions about IFT's and thought I knew how they worked, but after the recent rally I'm not so sure. Here is my situation:

On Friday 09/29 I was 100% G.
On Monday 10/1 I did an IFT to 50%C 50%S. This was done around 8:57 am and was processed that day. The markets rallied about 1.5%.
I saw an account balance increase of about $800 (.5%)on Wednesday after everything was processed.
On Tuesday 10/2 I choose poorly and went 100% I. This was around 9 am and was processed that day. The I fund lost about .25% that day. I saw an account balance decrease of $500.

Questions:

Are your transfers "pro-rated"? In other words, if the market has already rallied 1% by the time your transfer takes place, do you only get what it makes the rest of the day, lets say .5%, or what the close is?

Does the markets open the next day have an influence before a transfer is made?

It just seems in the market looses, I take the brunt of the loss, but the rallies don't add up in my account. This is a great board and thanks to everyone who posts information here. Sorry if this is rehashing old info, but I'm new at IFT's and want to maximize my returns

Thanks

no prorating, tho the Fair Valuation in the I fund might appear as such, and could possibly be considered a prorating of sorts.

 

[tspinny]

So with my IFT on Monday, I bought high at COB that day, then sold low on Tuesday when I moved to the I fund. Then how did I make any money at all? To me, that still doesn't explain why my losses are more in line with the market fluctuations than the gains are:blink:.

I apologize for my ignorance, but I can't seem to "make the numbers work".


I do understand when you do a transfer, you are only buying shares, and a monetary value is not placed on those shares until the next day.

 

[SkyPilot]

So with my IFT on Monday, I bought high at COB that day, then sold low on Tuesday when I moved to the I fund. Then how did I make any money at all? To me, that still doesn't explain why my losses are more in line with the market fluctuations than the gains are:blink:.

I apologize for my ignorance, but I can't seem to "make the numbers work".


I do understand when you do a transfer, you are only buying shares, and a monetary value is not placed on those shares until the next day.

It's not so much that you are buying shares, but rather your balance is reflected as an expression of shares. (That probably did not help too much.)

It's easier for people to understand an expression in terms of shares than always working in percentages gained and lost...

Under the old system before the S and I funds were added, there were no "shares"... I hardly ever consider how many "shares" I have, as it really doesn't make any difference. However, I do want to know the percentage of gain or loss...

best of luck...

 

[tspinny]

Under the old system before the S and I funds were added, there were no "shares"... I hardly ever consider how many "shares" I have, as it really doesn't make any difference. However, I do want to know the percentage of gain or loss...

I semi understand that percentage of gain or loss is what is most important, but do you see where I'm confused based on my transfers this week? If I wanted to catch the Monday rally, should I have IFT'd into the market on Friday instead of Monday before noon?

 

[Breyers]

I semi understand that percentage of gain or loss is what is most important, but do you see where I'm confused based on my transfers this week? If I wanted to catch the Monday rally, should I have IFT'd into the market on Friday instead of Monday before noon?

I'm confused by the questions in your first post, but I think I can help with these questions...

To catch the Monday rally of the I Fund on 10/1, you should have IFT'd into the I Fund on Friday, 9/28, before 9 a.m. That way you would have purchased the I Fund at $25.18 at close of business on 9/28 AND seen your I Fund shares increase in price to $25.52 by close of business on 10/1.

 

[tspinny]

To catch the Monday rally of the I Fund on 10/1, you should have IFT'd into the I Fund on Friday, 9/28, before 9 a.m. That way you would have purchased the I Fund at $25.18 at close of business on 9/28 AND seen your I Fund shares increase in price to $25.52 by close of business on 10/1.

Thanks Breyers. Initially, when I looked at doing IFT's I assumed that was the way it should work. But I saw posts where people transfer into a fund that is expected to rally that day, especially in the members account section. I missed the last 2 rallies because of the confusion.