nsurf9
Member
Hopefully with your blessings, I have sent the below email to Mike Causey at Federal News Radio.
Choose to Save, and Choice to Profit
The Thrift Saving Program (TSP) fund is not a spendthrift trust fund - drawn to protect a group of spinsters or incompetent beneficiaries. Its beneficiaries are hard working, tax and bill paying competent Government Employees.
AND, YES! We know the difference between the G, F, C, S and I buttons. And, I resent like &$%@ having someone breach my loyalty (not to preempt profits or buying opportunities), obedience (do what I ask with my money, as beneficiary) and care (make thoughtful decisions; and, correct and proper calculation and accounting of the trust res (property of the trust).
In my opinion, and many other federal employees I know, we believe the Thrift Saving Program (TSP) was among the best of the United States Federal Government benefits.
Currently, my return from 1/23/08 until the present, is approximately 20%, or around 142% APR. This figure is net of contributions, but allows for compounding of profits. Mr. Causey, at $100k invested, a senior executive would have more than doubled his SES $115k income. In contrast, most of the TSP funds for the same period - lost money. None gained over 3.5% that I recall. My IFTs (interfund transfer) and returns, as those of other very intelligent Government employees, are posted at TSPTalk.com. In fact, several TSPTalk.com members have also done better than the any of the individual funds. Look to the “automated tracking software” posted on TSPTalk.com’s site for my (and their) returns. Although, my returns posted on the site shows 14.14%, I am actually at ~20.15, for an APR of ~142%. I made 4 trades during each month of January and February 2008. I should have profited from a couple more – it was a very volatile market.
On March 31 at high-noon, EST, the TSP Board will impose a 3 limit IFT per month and I will no longer be able to do this again; or, show you how.
It is also important to note, on March 31, not only will I be limited to 3 IFTs per month, but, I will also be punitively punished by being reduced to making transfers only by U.S. mail - effective when processed.
Allowing the TSP Board to impose a limit of 3 IFTs per month will, in my opinion and experience, needlessly (and potentially dangerously), chill the atmosphere for TSP members to be proactive with their retirement accounts. This is because a transfer, that costs relatively little, becomes even more valuable that moving out of a down turn market or moving into a profitable up-swing market, needlessly.
In other words, if you make a couple of bad moves, you will subject your entire TSP retirement to losses or be precluded from meaningful gains of potentially thousands dollars - to save a few bucks in transfer costs. Worst of all, the IFT limitation has the potential to all but destroy the pro-activeness of members’ to learn to do better. Just what are the actual costs of moving funds to each of the G, F, C, S or I funds? How much does it cost to protect your one hundred, or one hundred thousand dollars retirement?
From my experience, there are generally five to six up-and-down oscillations every month of the year from which to avoid loss or capitalize on gain. Having the flexibility to move into difference funds can turn a bad market into a profitable one. It can turn a good market into an exemplary one. The 3-move per month limit is simply not enough. Ten may be too expensive in transfer costs. One thing is certain, if you choose to save and have the flexibility to move and learn, you will profit.
It’s not the TSP Board’s money! The ultimate decisions regarding the funds should belong to it owners - in this case, the TSP members and not the TSP Board. The Board’s fiduciary duties to TSP members are loyalty, obedience and care. These duties are the legal hallmarks of a trust relationship between a trustee and his or her beneficiary. So too, it should also be to the TSP members and our TSP fund.
The TSP fund must find its legal “sui juris” voice. If, the Employee Thrift Advisory Council (ETAC) is representative the fund’s legal voice, then its decisions aught to be controlling - - not advisory. And, until the appropriate roles and functions of the ETAC, the TSP Board, the Federal Government and, most importantly, the member/owners of TSP are fully defined, and the TSP members have a voice, the “status quo” of a reasonable number of “unlimited” IFTs between funds should be maintained to prevent irreparable harm to TSP members.
Subsequent to a emergency temporary injunction, a full hearing on the merits of the case should be heard - setting out who, what, and when is right - - for the best interests of TSP members.
nsurf9 at TSPTalk.com.
Choose to Save, and Choice to Profit
The Thrift Saving Program (TSP) fund is not a spendthrift trust fund - drawn to protect a group of spinsters or incompetent beneficiaries. Its beneficiaries are hard working, tax and bill paying competent Government Employees.
AND, YES! We know the difference between the G, F, C, S and I buttons. And, I resent like &$%@ having someone breach my loyalty (not to preempt profits or buying opportunities), obedience (do what I ask with my money, as beneficiary) and care (make thoughtful decisions; and, correct and proper calculation and accounting of the trust res (property of the trust).
In my opinion, and many other federal employees I know, we believe the Thrift Saving Program (TSP) was among the best of the United States Federal Government benefits.
Currently, my return from 1/23/08 until the present, is approximately 20%, or around 142% APR. This figure is net of contributions, but allows for compounding of profits. Mr. Causey, at $100k invested, a senior executive would have more than doubled his SES $115k income. In contrast, most of the TSP funds for the same period - lost money. None gained over 3.5% that I recall. My IFTs (interfund transfer) and returns, as those of other very intelligent Government employees, are posted at TSPTalk.com. In fact, several TSPTalk.com members have also done better than the any of the individual funds. Look to the “automated tracking software” posted on TSPTalk.com’s site for my (and their) returns. Although, my returns posted on the site shows 14.14%, I am actually at ~20.15, for an APR of ~142%. I made 4 trades during each month of January and February 2008. I should have profited from a couple more – it was a very volatile market.
On March 31 at high-noon, EST, the TSP Board will impose a 3 limit IFT per month and I will no longer be able to do this again; or, show you how.
It is also important to note, on March 31, not only will I be limited to 3 IFTs per month, but, I will also be punitively punished by being reduced to making transfers only by U.S. mail - effective when processed.
Allowing the TSP Board to impose a limit of 3 IFTs per month will, in my opinion and experience, needlessly (and potentially dangerously), chill the atmosphere for TSP members to be proactive with their retirement accounts. This is because a transfer, that costs relatively little, becomes even more valuable that moving out of a down turn market or moving into a profitable up-swing market, needlessly.
In other words, if you make a couple of bad moves, you will subject your entire TSP retirement to losses or be precluded from meaningful gains of potentially thousands dollars - to save a few bucks in transfer costs. Worst of all, the IFT limitation has the potential to all but destroy the pro-activeness of members’ to learn to do better. Just what are the actual costs of moving funds to each of the G, F, C, S or I funds? How much does it cost to protect your one hundred, or one hundred thousand dollars retirement?
From my experience, there are generally five to six up-and-down oscillations every month of the year from which to avoid loss or capitalize on gain. Having the flexibility to move into difference funds can turn a bad market into a profitable one. It can turn a good market into an exemplary one. The 3-move per month limit is simply not enough. Ten may be too expensive in transfer costs. One thing is certain, if you choose to save and have the flexibility to move and learn, you will profit.
It’s not the TSP Board’s money! The ultimate decisions regarding the funds should belong to it owners - in this case, the TSP members and not the TSP Board. The Board’s fiduciary duties to TSP members are loyalty, obedience and care. These duties are the legal hallmarks of a trust relationship between a trustee and his or her beneficiary. So too, it should also be to the TSP members and our TSP fund.
The TSP fund must find its legal “sui juris” voice. If, the Employee Thrift Advisory Council (ETAC) is representative the fund’s legal voice, then its decisions aught to be controlling - - not advisory. And, until the appropriate roles and functions of the ETAC, the TSP Board, the Federal Government and, most importantly, the member/owners of TSP are fully defined, and the TSP members have a voice, the “status quo” of a reasonable number of “unlimited” IFTs between funds should be maintained to prevent irreparable harm to TSP members.
Subsequent to a emergency temporary injunction, a full hearing on the merits of the case should be heard - setting out who, what, and when is right - - for the best interests of TSP members.
nsurf9 at TSPTalk.com.
