The tide is turning - Look at these comments
http://www.govexec.com/dailyfed/0408/041008pb.htm
Fair TradeBy Brittany R. Ballenstedt
bballenstedt@govexec.com April 10, 2008
"TSP Legislative Director Thomas Trabucco said on Tuesday that officials will not consider comments or establish final rules until the comment period is over. "I expect it will be at least a few days until we have something to say," he said."
Look at that quote from Director Thomas Trabucco - the FRTIB has no established rules yet targeted a specific group. Froze their accounts, forced members to mail the IFT's wasting more time and money. The FRTIB is throwing bricks and lives in a glass house. The same group wasted how many millions Mr. Trabucco since 2000 possibly close to 100 Million and the brick throwers of the FRTIB are quilty in this matter. They spent $300,000 mailing letters about saving money. Audit, Audit, Audit...Congressional Investigation and the DOL must get involved. They are out of control. The track record in 2003 was $36 Million wasted and the Senate took them on. A woman who is relentless from Maine Senator Susan Collins demanded accountability and look what she uncovered. Time for the same news outlets the FRTIB uses to sell their bogus information to investigate the messenger. A good place to begin would be a Freedom of Information Request. If you want the facts you won't get it for this crew. Please get the fair and balanced real facts.
UNION YES Posted April 15, 2008 5:47 PM
I just gotta say this. For those who call multiple IFT's "day trading" need to get a better education and try to understand that the fight isn't over 2,3,4 IFT's. The fight is over "Your Right" to do so and not to be snowed into believing false or distorted information. That is the true fight. Stop with the labels, its not "day trading" and wake up to the truth before it bites you in your wallet. Thank You For Your Time !
Squalebear Posted April 15, 2008 3:35 PM
Kath,
Just because a few posters use the same language doesn't necessarily mean that it's a form letter. I frequently cut/paste from several comments so as to accurately capture ideas word-for-word, and then add my own to it. If you read the two "twisted the data" posts you will see that this is the case, they are not identical form letters signed by different folks. You are correct, however, in that there is a "network" of TSP members fighting these limits, and we are using petitions, form letters, and all other legal methods to do so - as opposed to the illegal snail mail restrictions imposed by FRTIB on 500+ TSP shareholders. Penalizing someone for following existing law and not complying with a PROPOSED change that isn't even on the books yet? Does that sound legal?
fedworker Posted April 15, 2008 2:04 PM
The TSP funds are not stocks, bonds, or commodities; they are essentially mutual funds and not designed for "Day Trading".
If all these folks are so interested in playing Day-Trader with their retirement security, then why don't they change their TSP contribution to the minimum required to maintain full agency-matching (or less if they are feeling particularly unwise), and transfer their balance into the L-Fund that matches their desired level of risk. They could then direct the funds they free up into an E-Trade account or the like.
Those accounts are better suited for this purpose and will ultimately give them more flexibility while not impacting the bottom line of those of us who prefer to look at the long term rather than chasing the market day to day. Plus, their TSP account could then become a more conservatively invested retirement source that could help offset some of the inherent dangers of day trading.
CF Posted April 15, 2008 12:50 PM
The TSP is not set up for "day trading", and while most people like to try and beat the market, they will not. However, there are a few different alternative strategies considering the 2 intrafund transfers per month. You could change your allocation for each paycheck so that you are dollar cost averaging into differernt % of funds each paycheck. Also, another thing I have found successful was transferring in bulk to a safety net (G fund) while there was a lot of negativity and slowly buying back into the C, S, and I funds with a transfer. Last summer I sold my C, S, and I funds into the G fund and I have slowly bought back in at different points when the funds were 10-15% below where I sold. One of the reasons we are able to have the lowest expense ratio of any investment in the country is because of regulations and restrictions. You either get 2 transfers per month or have to pay higher transaction costs, can't have your cake and eat it too!
Chris Posted April 15, 2008 9:37 AM
Intelligence Officer by Day, Day Trader by Day
It's about time the TSP stopped the practice of government workers using their accounts for day trading. Lets call it what it is!
It's bad enough that we have people day trading with their private IRAs or stocks online. I've got a friend who works in intelligence who told me that he worked with a guy who resigned to become a day trader. How all of a sudden was he able to do that? Anyone with brains would figure out that he was able to do this because for years he was practicing day trading while on the government payroll. After all this, from what I heard he failed as a day trader and the government hired him back. If he had desk job that didn't mean much then I would understand, but if he's an intelligence officer shouldn't he have more important things to do than be a day trader while being paid by the government? It's a joke!
Claudia Posted April 14, 2008 8:12 AM
For FERS participants, TSP is our retirement system. The TSP system was intended to allow us to control our risk. It is impossible to do so in market conditions such as those that currently exist with only two IFTs per month.
It also seems absurd that we all have to pay to do a daily rebalancing (read transfers) of all of the money in the L funds. Yet, the costs of participants making three or four IFTs in a month from time to time is a big deal?
In the end it does not matter, because FRTIB appears to have already reached its decision to proceed with this rule regardless of TSP participant comments.
Shame on FRTIB!
Scott Posted April 10, 2008 6:34 PM
The average costs to TSP Participants went down from $4.13 per participant in 2006 to $3.55 in 2007. This isn't per interfund transfer, this is per YEAR! Costs per shareholder are going DOWN! What is the problem again?
The FRTIB cites the I fund as the main source of trade costs. Many have offered a simple solution: do not report the share price until 0700 hours the next day. That takes away the fair valuation and allows Barclays to set an actual price for the I fund, rather than guess what the price will be and make us all pay the difference for their wrong guesses.
There are better ways to bring down the costs of our plan. Truth be told, the costs as they are right now are not so bad compared to the private sector. The limitations are not necessary.
Randy Posted April 10, 2008 4:45 PM
The "twisted the data" postings here show that the TSP board is not the only form letter initiator. The "smart" "free traders" have established their own action network. I put my money into the Thrift SAVINGS Plan to for my retirement but now fear I must move my SAVINGS away from uncontrolled "frequent trade activity" by frantic, fanatic, gambling traders "who choose to manage their TSP accounts." I have other mutual funds where there are reasonable controls and higher management fees. I have bank accounts and credit cards that "change the rules" and inform me in the mail with the current statement. Where does "free trading" go from here? The future TSP may have enough funds to influence market swings, a simple tip to the "smart" network, a little insider-type trading to "make their accounts grow" "following the existing rules" to be sure, what's the harm? After all "the TSP funds are our money."
Kath Posted April 10, 2008 4:16 PM
I retired early a little over 8 months ago. The reason I was able to do so was my TSP investments. I made more then $100,000 in profit in the last 24 months. The reason I was able to do that was to be able to trade-sometimes even daily. I evaluated the market every morning. Had I still been involved with the old rules-where we could trade once a month-I would not have been very sucessful. Had I been able to make more than one trade per day-I'd be a millionare. You can't time the market with 2 trades a month! You will loose unless you are satisfied with the G Fund, very safe, but without any real profits when adjusted for inflation.
candace carrera Posted April 10, 2008 1:31 PM
I'm all for keeping the TSP's costs to a mimimum, and limiting the number of trades allowed is one important way to do that. I find it amazing that 24 trades per year is not enough for some feds.
