Less than 1 Percent Option (read only)

[Boghie]

<1%IFT Option - Bumpin' for the Newbies...

Bumping this thread for the newbies...

The definition and techniques behind using small unlimited IFTs are on page one of this thread. Thoughts follow.

Here is one thought.

Lets say you got scared yesterday - maybe you thought America was going to lose 1,000,000 jobs in July or something. You used your second IFT to run to safety - by the way, not stupid after October, November, and March. Now, you may miss on a major rally over the next few days.

Well you are in luck. Your salary contributions gave you 0.02 holdings in the C, S, and I funds today. So now you can use SqualeBear's technique to bump them to 1% each. Then hope Monday bumps them to 1.x% so you can bring them up with another free IFT to 2%. Wash, Rinse, Repeat.:cheesy:

If you mix in the L Funds you can reallocate a significant portion of your assets in small increments every day (3% - 5% every day).

Enjoy...

 

[Guest2]

Re: <1%IFT Option

THE ANSWER IS YES YOU CAN MAKE A <1%IFT WHILE ALL PERCENTAGES ARE SHOWING xx.00% IN ALL FUNDS !

First, know this ! It counts towards your 2 limit for the month.
However, if you've used your 2 IFT's already then here's the breakdown.

You must remember that the TSP determines "share price" at the end of
the day, however, any IFT's will be calculated last / after the share price
has been determined. Next, your IFT counts towards tomorrow's trading
and must reflect the next days beginning share price.

With that said;

If your TSP Balance shows 50.00%(G) 25.00%(C) 25.00%(S) prior to noon on the day that you've decided to do a <1%IFT,,,,,,,,, then,,,,,,,,,

You can enter the SAME PERCENTAGES into the IFT Request page prior
to 12 noon. At the end of the day, the TSP will determine your gains and
losses for that day. After they do, your percentages would have changed
and would have been published the next day. However, you made a <1%IFT
before noon. Having already changed your Balance to reflect the days
change, the TSP will then adjust your balance to the percentages that
you requested before noon.

TO MAKE THIS EASIER TO UNDERSTAND, I'LL ATTEMPT TO DEMONSTRATE WHAT YOUR BALANCE WOULD LOOK LIKE AT EACH CHANGE.

* BEGINNING BALANCE BEFORE NOON: (G)50.00% (C)25.00% (S)25.00
* <1%IFT CHANGE ENTER BY NOON: (G)50% (C)25% (S)25%
* THE DAYS TRADING LEFT YOU WITH: (G)49.95% (C)25.03% (S)25.02%
* THE TSP DETERMINES YOU MADE A <1%IFT AND WON'T PUBLISH THE ABOVE PERCENTAGES.
* THE TSP TAKE YOUR ENDING DOLLAR BALANCE AND ADJUSTS IT TO REFLECT YOUR IFT REQUEST.
* THE TSP PUBLISHES YOUR NEW PERCENTAGES THE NEXT MORNING, THEY ARE;
* (G)50% (C)25% (S)25%

BY DOING A <1%IFT,,,, YOU FORCED THE TSP TO MOVE THE xx.02% and the xx.03% BACK INTO THE (G) FUND.

NORM, YOU ALWAYS WELCOME TO CONTRIBUTE YOUR ANSWERS TO QUESTIONS POSED TO ME BY OTHERS.

 

[Show-me]

nasa1974

The “<1% option” is just that an option that can be used by members of the TSP that want to stay proactive in their accounts. This is for members that do not believe that a “buy and hold” mentality is for them. This option creates RISK in your account and is not a safe haven from losses in the market. That is what the “G” fund is for.
The <1% option can be used to make IFT’s (Inter Fund Transfers) after you have used your first 2 IFT’s. The <1% option is considered an IFT.
All the posts below help explain how the <1% option works. Start with the first post and work your way up. Most of your questions should be answered.
This is a read only thread. If you have any questions about this option you can always post on my account.