Daily interfund transfers

[adegorf]

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Here's my question: Is it possible to move money quickly from one fund to another? In minutes instead of hours. I'm told that my request must be received before 1100 hrs if I want to transfer funds on that same day and based on whatever the funds are worth at close of business on that day. If I attempt a tranfer after 1100 today, I get to use the bottom line that will exist at close of business tomorrow. Is there any way around that?

Example: The news about the Iraqi elections came on a Sunday. I suspected it would give the market a boost on Monday, and I wanted to move money into the S Fund to takeadvantage of the first surge I expected (correctly) early on Monday. But since it seems impossible to move that quickly, I couldn't do it. Or could I? Why is there such a long delay in interfund transfers?

 

[Guest]

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adegorf wrote:

Here's my question: Is it possible to move money quickly from one fund to another? In minutes instead of hours. I'm told that my request must be received before 1100 hrs if I want to transfer funds on that same day and based on whatever the funds are worth at close of business on that day. If I attempt a tranfer after 1100 today, I get to use the bottom line that will exist at close of business tomorrow. Is there any way around that?

Example: The news about the Iraqi elections came on a Sunday. I suspected it would give the market a boost on Monday, and I wanted to move money into the S Fund to takeadvantage of the first surge I expected (correctly) early on Monday. But since it seems impossible to move that quickly, I couldn't do it. Or could I? Why is there such a long delay in interfund transfers?

That's it, for now at least.

Ummmm. "Long delay" is a relative term. My understanding is that when the TSP first started, people could only switch once a year...then four times a year. Given that history, switching every day is quite fast.

I think your question isn't really, "Why can't I switch every minute of the day?," but rather, "Why can't I learn first of an event and then switch so as to profit from that knowledge?"

I would recommend that you discussyour question with Martha Stewart in the correctional institution.

Maybe I should clarify my point...day traders can trade at any second of the day..instantly..and they generally lose money despite their obvious rapidity.

 

[Wheels]

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saraho wrote:

My understanding is that when the TSP first started, people could only switch once a year...then four times a year. Given that history, switching every day is quite fast.

AND, you had to have your transfer in by the 15th if you wanted it to be effective by the the end of that month, otherwise it wasn't effective until the end of the next month.

Dave

 

[tsptalk]

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Wheels wrote:

AND, you had to have your transfer in by the 15th if you wanted it to be effective by the the end of that month, otherwise it wasn't effective until the end of the next month.

Ah yes, those six week waiting periods were sure fun. What a joke that was.

 

[Guest]

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My guess is that seasonal indicators (that Rolo et.al. scoff at now) were about all you had to work with in those good old days. :?

 

[Rolo]

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At least you didn't say ROLO.

 

[adegorf]

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Thanks, Y'all, for the non-answers. It doesn't matter what TSP used to do or that it's better now than it used to be or that day traders often lose their butts. And I don't know what the cutesy little comment about Martha Stewart has to do with anything either.

So. Conclusion: There's no way to make interfund transfers quickly.

The above notwithstanding, if the gum-mint has the capacity to make such transfers in a matter of seconds -- and I think we can assume that it does -- why does it not offer that capacity to its TSP parishioners?

 

[Rolo]

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adegorf wrote:

So. Conclusion: There's no way to make interfund transfers quickly.

Correct. The points were:

1. Be happy we don't have to wait weeks like we used to (that sucked) and that the TSP has made progress. Will it get better, as in more speedy? I seriously doubt it.

2. Any more speedy than once/day is of no real benefit since real-time daytraders do not appear to do any better than anyone else. Just 'cos yer busy doesn't mean yer accomplishin' anything. I really would like to be able to place my order in by, say, 2pm or so and have it take effect at that day's closing price. I think that is not unreasonable.

3. We put the FUN in FUNd! Welcome to the board, adegorf!

 

[tsptalk]

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adegorf wrote:

Example: The news about the Iraqi elections came on a Sunday. I suspected it would give the market a boost on Monday, and I wanted to move money into the S Fund to takeadvantage of the first surge I expected (correctly) early on Monday. But since it seems impossible to move that quickly, I couldn't do it. Or could I? Why is there such a long delay in interfund transfers?

No, the best you could do is be in the S fund on Tuesday morning by making a transfer before the Monday noon ET deadline.

 

[Guest]

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Hi adedorf, interesting nic btw. This has been brought up before, please allow me toaddress that. TSP is a retirement account. We have the advantage , for now, that we can trade every day. Most retirement accounts, IRA's, 401k, 403B, company plans, etc., don't allow that. Most you have to pay a penalty for if you switch funds within 180 days. This is why I like our plan, as "limited" as we are. This is how fund manager's, advisors, or what ever you wanna call them make their money. The "managers" get paid by the "fund owners". If you .....sorry, talking too much again. \\\



Don't you like the fact that if the market is headed down, you can "switch" within a day or two and not take the full brunt of the attack? Even if you have to wait a couple days, it's better than having to wait 6 months to make a change. Regardless to say, too late then.

I like TSP, and yes, I also have a self-directed IRA. With the fees that are charged to make changes, you have to some bucks in there to off set it. But it still takes 3-5 days to settle a "sell".



Hope this helps.......<)

 

[Rolo]

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tsptorture wrote:

...it still takes 3-5 days to settle a "sell".

That's true, I never thought of that. I guess we don't give our TSP dealie enough credit.


And, torture, it's adegorf.

 

[adegorf]

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Rolo hits it exactly on its head and makes the point that I failed to make earlier: an hour or two of delay would be very acceptable.

I agree that our TSP deal is terrrific, and I agree with every positive statement I've read. After more than a quarter of a century of gum-mint service, I've learned that nothing is likely to change to our benefit if we leave it up to the managers -- until the managers realize that they'rein this thing too.Sometimes mere inquiry brings that realization about.

While I'm in my mellow mood: Congratulations and thanks to all who have had anything to do with developing this site. Henceforth, I promise to keep my beady eyes open and my big mouth shut.

 

[Rolo]

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adegorf wrote:

Henceforth, I promise to keep my beady eyes open and my big mouth shut.

Aww ww nooooo! Who's gonna divert attention away from me now? We can alternate being fall-guys, hehe.

So where's the nick come from? I keep thinking of the '80's video game.

 

[adegorf]

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Rolo:

Since you asked: a gorf isa backward frog, and that describes me pretty well. I'm just a simple gorf, honest, trustworthy, brave, handsome, and true-- a credit to my water lilly.

adegorf