New to the I fund

[shawdaddy1972]

A few months ago I did a transfer from my "S" fund to the I fund. I currently have quite a bit of money in this fund and contiune to put 100% of my cont. in it. My question is should I stay in the I fund or go to another fund? I am new to moving my money around in the TSP. If it helps any my Personal Investment Performance is 39.71%.

Thanks,
Chad

 

[Birchtree]

I'm a future oriented renegade contrarian investor - have you ever heard the saying don't look a gift horse in the mouth? The dollar is still higher than it was a year ago at this time so it may drift lower - helping out the I fund. But when that situation changes and it will change the I fund may bleed. I would seriously consider shifting slowly out of the I fund towards the C fund in 10% increments perhaps on a monthly basis and simply wait and see what happens. My own positions are 65C/20S/15I. Over the last couple of years I have round tripped on the I fund three times making a few dollars. The I fund can be quite volatile and could move against you rapidly - so take your time and dollar cost average into the C fund. FWIW.

 

[shawdaddy1972]

Thanks alot for the info. So the I fund is dependant upon the dollar, and the higher the dollar, the lower the I fund? I will start shifting into the "C" fund today. Again, thank you for the info

 

[Birchtree]

The I fund is composed of large cap foreign stocks that will be driven by earnings - just like the other funds. The dollar has an impact on the I fund because of fair valuations that are controlled by the sponsor - they are used to keep traders off center. I still think it would be wise to shift and diversify going forward.

 

[shawdaddy1972]

Thanks for the info Birchtree. I have moved in to 60/C-20/S-20/I. With that being said, I have just over 10K in the I just sitting there. I am not to clear on the interfund transfer move. Should I do one and move my 10K around? Or could someone explain the benefits of the interfund transfer? Thanks again

 

[burrocrat]

If it helps any my Personal Investment Performance is 39.71%.

Yes, a PIP of 39.71% certainly helps. Good for you!

In general, the way i understand interfund transfers is, you 'sell' the funds you move from and 'buy' the funds you move to, at COB prices if done before noon eastern time, any percentages left in same fund are net zero trades.

Say F fund is rising and C or S is falling, you tranfser from F and buy stocks, buy low sell high. Kind of like day trading, but with very short day. Watch out though, i think the term is 'head fake', many a slip twixt the cup and the lip. Actual closing prices may not end up where you think they will 4 hours earlier.

Get up earlier and drink more coffee if you live west of the snakepit, your day just got shorter.

Good luck with your investments.

 

[phil]

I'm a little concerned about the market volatility right now. Tonight both the Nikkei and AORD are down about 2%. It may bounce back up again, but I still think we're in a bear rally. I'm in 98% G right now, but I'll wait for just a bit before moving. Could be I'm missing the boat, but I'll take the chance.

Even Citi has trouble getting cash these days. They recently borrowed a chunk of money from their bondholders. That's not good. It indicates that they're still hemmorhaging money from somewhere.