Single IFT or 1%>/< by 1200 results in sell of all funds at COB prices

[Devilduck]

I'm a little heated fright now. Because I moved F fund to G fund TSP will sell off G,F,S, & I at todays prices(which for S fund are lower than my purchase price) and repurchase all funds at todays prices. I did not give TSP permission to sell my S fund today, only F fund. I spoke with TSP twice and both operators stated IFT of a single fund results in 100% sale of all funds and repurchase of COB if before 1200 or following day if after.

What is the work around on this?

Thanks for insight and hope this will help save others money.

Dave...

Is this new to me
Allocation before IFT:
4.99% G
79.88% F
0.00% C
10.07% S
5.06% I

After IFT:
83% G
0% F
0% C
11% S
6% I

 

[Boghie]

DevilDuck,

To me, it looks like you bailed whatever assets you had in the 'F Fund' to the 'G Fund' while rounding up your S/I assets as a result of marking them in whole numbers.

In affect, you bought a tiny bit more S/I at lower prices and stuck the rest in the 'G Fund'. So, I think you did what you wanted.

Unless, you wanted to mess with all the fractionals:nuts:.

 

[SteveTSP]

Your specific question states that all of your stock funds were repurchased at today's price. The percentages are right for your move but you are thinking that all of your existing shares were repurchased at current prices? I would only assume your small percentages were done at the current price not your total of existing shares. If I am wrong, you have found a serious flaw on my understanding what an IFT does do to our accounts.

 

[Boghie]

SteveTSP,
As you thought, only the fractional change was purchased.

Brokerages do not sell everything you have, convert everything to cash, and then buy the same stuff in different allocations.

 

[SteveTSP]

Thanks Boghie. I never have checked the details (exact number of shares that are now owned) of an IFT transaction but assumed it was done as your stated. I feel allot better now but I hope that the orignal poster understands what we are saying.