Interfund Transfer vs Contribution Change

[tsptalk]

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Let me just make sure that I have this straight… when you say that you are going 25% into the S fund, you mean that you are doing a contribution allocation, right? Or are you doing interfund tranfers? … is there a reason why someone would want to do a interfund transfer?

I rarely do a contribution change. A contribution change only changes the allocation of your payroll deductions, not your entire balance as an interfund transfer does. Every time you do an interfund transfer, your entire balance gets moved. Since I make so many interfund transfers, I don't have a need to do a contribution change.

Let's say my contribution allocation is 50% C 50% S. But I just did an interfund transfer to 100% G. At that point, my entire balance will be in the G fund. If I don't make an interfund transfer for a month,I would have new money going into the C and S fund every time I waspaid. If I was still wanting to be in the G fund, I may go in and do another interfund transfer at that point to movethe entire balance (including the small amount that had been going into C and S) intothe G fund.

If you have a small balance relative to your contributions, you may want to change both. If you have accumulated a significant balance, your contributions make up a much smaller percentage of your total balance and it is not as important to do this.

Tom

 

[puertorico]

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...if I have $100 in G- "interfund allocAtion"

...The next pay check I put $50-C "contribution allocation"

...then I request and interfund transfer to IFUND,THAts means

all my money go to I fund $150 plus earning or losses

But the new money coming from my pay check till go

to C-$50 :CONTRIBUTION ALLOCATION "NEW MONEY"

balance:

$150-I ,plus earning and losses in I

$50-C "NEW MONEY FROM PAY CHECK" STILL GO TO C

right or wrong ?

 

[tsptalk]

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That is right PR! And in that case your new contribution isa large percentage of your balance so I would recommend changing your contribution allocationwhen you do an interfund transfer.

If your balance was $100,000 and you were putting in $50 a pay period, it would not be as important to change the allocation of the contribution.

Tom

 

[CheapShot]

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With the June 30th deadline approaching you don't reccomend acontribution change? I have a balance of 127,000 and change,and I have 100%going into the C Fund. I changed my allocation thisAM to 60 C-Fund, 10 S-Fundand 30 I-Fund. Then Iwas searching the Web when I found this site. I'm registered now and am looking forward to participate.

 

[tsptalk]

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CheapShot wrote:

With the June 30th deadline approaching you don't reccomend acontribution change? I have a balance of 127,000 and change,and I have 100%going into the C Fund. I changed my allocation thisAM to 60 C-Fund, 10 S-Fundand 30 I-Fund. Then Iwas searching the Web when I found this site. I'm registered now and am looking forward to participate.

Welcome CheapShot!
I always recommend a change. For tomorrow, 6/29, I am going 30% G, 40% C and 30% S.

I haven't updated it yet, but here is a history of the allocation changes for 2004... [url]www.tsptalk.com/allocation.html[/url]

Tom

 

[TechMan]

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Dear TSPTALK,

Don't you get charged for making interfund transfers?

I did one and got charged for the transaction... I'm a uniformed TSP member and just want to know if this is true or not.

Thanks in advance...

TechMan

 

[tsptalk]

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TechMan wrote:

Dear TSPTALK,

Don't you get charged for making interfund transfers?

I did one and got charged for the transaction... I'm a uniformed TSP member and just want to know if this is true or not.

Thanks in advance...

TechMan

Welcome TechMan!

To my knowledge, there is no charge for transactions. Just a small percentage annual fee, like a mutual fund, that everyone pays whether or not you make a transaction. Now I could be wrong when it comes to uniformed members.

If you find something that states otherwise, please let us know.

Thanks.
Tom

 

[Rod]

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I'm in the military, and to the best of my knowledge there is not a fee for everytime you make a transfer. If there was, we'd all be broke!!!

God Bless

 

[Rolo]

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Welcome, CheapShot, TechMan!

There is no charge for transfers...play all you like, we all pay the same management fees regardless.

 

[Copper]

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As I was reading the conversation I realized that I had not made changes to the allocation section. Does the allocation section accept something other than whole percentages? For some reason the interfund section does not have whole percentages and I am not quite sure how that happened. Any suggestions?

 

[cowboy]

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Depending on the value of your stocks on a particular day the percentage will fluctuate from the whole numbers you started with. The percentage will fluctuate up or down depending on what your other holdings do in the other funds.

 

[Copper]

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Thank Cowboy, I will go in and make sure the changes in the allocation match the contributions.

Copper