Standard practice

catak

Member
What is standard practice when making an IFT? When making a Contribution Allocation into say the "S" or "C" and an IFT to the "S" and "C" fund as well? I've always left my contribution alone at 100%G and then when a signal change comes I make an IFT to either "S" or "C" at 100%. Am I not doing this correctly to take full advantage of the trading system? Thanks.
 
What is standard practice when making an IFT? When making a Contribution Allocation into say the "S" or "C" and an IFT to the "S" and "C" fund as well? I've always left my contribution alone at 100%G and then when a signal change comes I make an IFT to either "S" or "C" at 100%. Am I not doing this correctly to take full advantage of the trading system? Thanks.

I've actually seen this practiced a lot, some people like the "staging" of their funds in this manner as to this method. I think Boghie also practices this format.

Most people like the ability of this for a sole purpose. Not buying in to a losing market.

So if you are allocated to "G" and then using an IFT to put this into play, I think you are doing it right.
 
There is no correct way to do it. You can do it however you want. I have my contributions go into equities (currently the S Fund) as a sort of dollar cost averaging approach until the next IFT moves it all together.

Some folks try to change it with their IFT so the AT gains/losses matches there actual account. I personally don't see the benefit of this. The AT reflects the outcome of my IFT choices not my account balance. I get that from tsp.gov. :)
 
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