New to TSP

[nasa1974]

Trade timeframes and limitations:

• Huge for you and for most of us. You are limited to two (2) 'forward' trades (called IFTs) per month in TSP. By forward I mean a trade that increases the share count for any of the risk funds - namely F/C/S/I/Lifecycle. A trade that backs into the G fund counts toward your trade count but you can make those as often as you can within limits of the trade time frames. Remember that a move to the G fund can count against your 2 IFT's "IF" that move is either your 1st or 2nd move of the month.
• All trades (IFTs and Contributions) are settled at 1600 EST using the final share price of the day.
• All IFTs that occur before 1200 EST settle that evening
• All IFTs that occur after 1200 EST settle the NEXT evening (as if they occurred the next day)

There is/was a little trick you could do to perform small forward IFTs every day. Namely, the 1% rule if I remember the techniques name. Basically, TSP will allow you to go in every day and round your funds to a whole percentage point. Big deal you say - well... If you are in an upward market and you have bailed out in a panic earlier on in the month while it declined a horrific 3% or something - but you left 10% in C, 10% is S, and 10% in I then this technique can help. In an upward market today you have 10.0235% in C, 10.0472% in S, 10.0115% in I with a corresponding reduction in G. Well, you can go into TSP and IFT to 11% C, 11% S, 11% I. You are now 3% more into the market. And, you can do the same for F and the Lifecycle funds.
The <1% move will also count as one of you 2 monthly IFT's if performed as your 1st or 2nd move of the month.


So, I kinda recommend you keep your SEP-IRA:cheesy:

Boghie, good information.

 

[Boghie]

Trade timeframes and limitations:

• Huge for you and for most of us. You are limited to two (2) 'forward' trades (called IFTs) per month in TSP. By forward I mean a trade that increases the share count for any of the risk funds - namely F/C/S/I/Lifecycle. A trade that backs into the G fund counts toward your trade count but you can make those as often as you can within limits of the trade time frames.
• All trades (IFTs and Contributions) are settled at 1600 EST using the final share price of the day.
• All IFTs that occur before 1200 EST settle that evening
• All IFTs that occur after 1200 EST settle the NEXT evening (as if they occurred the next day)

There is/was a little trick you could do to perform small forward IFTs every day. Namely, the 1% rule if I remember the techniques name. Basically, TSP will allow you to go in every day and round your funds to a whole percentage point. Big deal you say - well... If you are in an upward market and you have bailed out in a panic earlier on in the month while it declined a horrific 3% or something - but you left 10% in C, 10% is S, and 10% in I then this technique can help. In an upward market today you have 10.0235% in C, 10.0472% in S, 10.0115% in I with a corresponding reduction in G. Well, you can go into TSP and IFT to 11% C, 11% S, 11% I. You are now 3% more into the market. And, you can do the same for F and the Lifecycle funds.

Now, let us look at what the trade settling limitations can mean in a terrible situation. Let us say, by chance that you were actually +7% in October of 2008. Champagne to all!!! Now, late September rolls around and early to mid-October stabilize and you think 'Wow, the charts and the tea leaves and the bird formations inform me that we have hit the low and things are going to boom!!!'. At 1100 EST, you move from a very conservative allocation to a 60/40 allocation. Not a real risky allocation. Kinda an old man's allocation. But, 2008 was horrendous and you are shell shocked!!! But, since things stabilized and since the allocation is not a high risk case you actually go back to work and not dwell on the market. In fact, you make it a point that you should be able to survive anything in a 60/40 (equities/bonds) allocation so you actually concentrate on work the next day. But it is lunch so you look at Tom's list of funds that equate to our TSP funds and find they dropped 8% already and are in a free fall. Get out now!!! But, now is 1208 EST with a sandwich in your mouth. Barf out the PB&J, get to typing, and bail to the G Fund right now!!! Too late. You will get today's full dump plus tomorrows full dump before the trade is executed!!! Happened to me - exactly this...

So, I kinda recommend you keep your SEP-IRA:cheesy:

 

[blanchdawg]

Whether I'm in SDS, SSO, or cash is actually part of our TSP Talk Plus premium service so out of respect for paying subscribers, I can't say in the public area of the forum.

Completely understand. I'll take a look at the premium services. The cost of a couple lunches can't be a bad investment for the ability to look at things through another perspective.

 

[tsptalk]

I've never used the leveraged and ultra short ETFs...common sense says that the ultra short ETF would be poised to pop soon, but this market is certainly....resilient, to say the least. If you don't mind me asking, are you already in SDS?

Whether I'm in SDS, SSO, or cash is actually part of our TSP Talk Plus premium service so out of respect for paying subscribers, I can't say in the public area of the forum.

Intrepid Timer's premium service also includes ETF trades for those who trade outside the TSP.

 

[evilanne]

Greetings blanchdawg! If you are currently doing well in your existing IRA, I would recommend keeping it. You can also contribute to outside Roth account if you are able & under the AGI limitations. Wishing you many positive returns

 

[blanchdawg]

I trade ETF's almost exclusively and use leveraged (like SSO) and short ETFs like SDS to be able to bet against the market when I think it may go down - something we obviously can't do in our TSP.

I've never used the leveraged and ultra short ETFs...common sense says that the ultra short ETF would be poised to pop soon, but this market is certainly....resilient, to say the least. If you don't mind me asking, are you already in SDS?

 

[tsptalk]

if anyone feels up to addressing the differences in how they trade their other retirement accounts as compared to the TSP, feel free to weigh in. I'm also weighing whether to maintain a separate SEP-IRA or whether to roll it all into the TSP. My preliminary thought is to keep them separated, as I seem to have the ability to reap the reward of higher gains through more trading options in the IRA.

Welcome blanchdawg! When I separated from the gov't I kept some money in my TSP account but rolled a good portion into an SEP-IRA.

The differences are that the TSP will be cheaper, but your options and flexibility are much greater in the SEP. If someone were a buy and holder I'd say stick with the TSP, but you said that you are more active and will probably benefit from that flexibility, but of course that come with it more risk.

I trade ETF's almost exclusively and use leveraged (like SSO) and short ETFs like SDS to be able to bet against the market when I think it may go down - something we obviously can't do in our TSP.

Good luck. If you have any questions let me know.

Thanks for joining us!

 

[nasa1974]

blanchdawg,

Welcome aboard. Great place to learn. Ask lot's of questions. There are people here that will help.

 

[nnuut]

Welcome to the Forum blanchdawg. Plenty of information here, this is the place to learn about TSP. You should get plenty of help our members and they are willing to share. Best of luck with your TSP!
Norman

 

[blanchdawg]

Good morning,

I've recently joined the government after having worked in the private sector for a number of years. I've actively traded my SEP-IRA for years, and continue to do so. However, TSP trading is a bit different, as I'm used to trading individual stocks. I understand it also takes some time to "process" the trade, so the ability to move instantaneously is a bit more difficult here, especially with the monthly restrictions.

I look forward to becoming part of the community. In the meantime, if anyone feels up to addressing the differences in how they trade their other retirement accounts as compared to the TSP, feel free to weigh in. I'm also weighing whether to maintain a separate SEP-IRA or whether to roll it all into the TSP. My preliminary thought is to keep them separated, as I seem to have the ability to reap the reward of higher gains through more trading options in the IRA.

Thanks for any input.