Question On Timing Of Transfer

[TSATSO]

Many pardons if this has been asked before. I understand a transfer request must be in before noon EST to be effective at closing that same night. Say I am in "G" fund. I submit transfer request before noon EST. That same day, the "G" fund pays a penny "interest". Do I get the penny increase in share price credited to my account, and THEN the transfer of shares is executed? Or, is the share transfer executed, and then the penny increase applied to the REMAINING shares in my "G" fund account? Or does it matter which action happens first? Trying to get this straight in my head, and not having much luck. Guess my basic question is what occurs first each evening: the re-valueing of the shares held in each of your fund accounts, or the transfer of shares between your different funds. Thank you for any help in this perplexing matter.

 

[EW_ret]

If you transfer into G fund today, you buy the G fund at the new closing price. This means you do not get the penny. You must transfer into the G fund Close of Business (COB) the day before the penny is paid. For example, the G fund paid a penny today at COB. The new price for G fund is $12.12. To get the penny you had to transfer to G fund yesterday in order to have the G fund shares today.

 

[TSATSO]

I appreciate the reply to my question, but it does not answer the question I was asking. I am wondering about transfering OUT of "G" fund. Say I am 100% in "G" fund. I enter a transfer request to move to 100% "C" fund. The request will be effective that same day at close of business. Also on that same day, the "G" fund price goes up a penny. My question: do I get the penny increase credited to my account BEFORE the transfer (thereby having X more dollars in my account), OR do they move my money FIRST, so that I do not benefit from the penny increase in share value. Sorry if I was not clear in stating my query the first time. Thanx for any answers!

 

[nnuut]

If you are IN the "G" fund and IFT to the "C" fund, you get credited with any gains made in the "G" fund on the day of transfer. Your "G" fund would go UP a "Penny" and be moved to the "C" fund ("G" fund account balance used to BUY shares in the "C" at the price for the end of that trading day).
Norman
View attachment 2126

 

[tspforretirement]

Many pardons if this has been asked before. I understand a transfer request must be in before noon EST to be effective at closing that same night. Say I am in "G" fund. I submit transfer request before noon EST. That same day, the "G" fund pays a penny "interest". Do I get the penny increase in share price credited to my account, and THEN the transfer of shares is executed? Or, is the share transfer executed, and then the penny increase applied to the REMAINING shares in my "G" fund account? Or does it matter which action happens first? Trying to get this straight in my head, and not having much luck. Guess my basic question is what occurs first each evening: the re-valueing of the shares held in each of your fund accounts, or the transfer of shares between your different funds. Thank you for any help in this perplexing matter.

Hello TSTASO,

Yes, you get the penny increase. The monies that you transferred are then "liquidated" so that it can buy into the new funds at the current rate.

Example.

You have fund YYY at $20 per share. You have 5. Therefore you have $100 invested. At the end of the day, your shares prices increased $1. Therefore you have 5 shares at $21 that are now equal to $105.

You put in a IFT prior to noon EST into the ZZZ fund.

Now that $105 has to go to into the ZZZ fund.

This fund ended the day at $10 per share.

Therefore you buy into the ZZZ fund and get 10.5 shares for your $105.





It basically comes down to "BUY LOW" and "SELL HIGH".


Hope this helped!

tspforretirement

 

[weatherweenie]

G penny paid today.

 

[TSATSO]

Many thanks to nnuut and tspforretirement for the excellent answers to my question. It is, then, as I thought it should be. Have a Good Day!