TSP board to limit interfund transfers

[nnuut]

Advice-

Disregard Saul. He's got his own problems right now.

Griffin and I are going to work on a fact-sheet- straight and simple, under two pages, outlining what the FV problem is, and how TSP Boards solution could make the matter worse, and how our solution (just change the time of day the I fund value is announced) can save the $25 million without having to restrict trades. The whole problem is the use of FV rather than actual value, and can be solved simply by moving the time the price is annouced from 7 p.m. to 7 a.m. the next morning. If they do that, they still have enough time to update all accounts, and it eliminates the possibility of a bad FV guess and a charge. No bad guesses, no charges. Simple. Clean. Easy.

Then we can post the fact sheet here, and start having conversations around it. We're going to work on it tomorrow. When we have consesus over what it will say, then we can start talking about how we are going to strategically get it into the hands of the right people.

Remember these words:

"This is the lesson: never give in, never give in, never, never, never, never—in nothing, great or small, large or petty—never give in except to convictions of honour and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy." Sir Winston Churchill, address to Harrow School, 29 October, 1941


Gotta go.

Good night.

I think this has a chance to work!!!!!!! Good thinking guys!!!!
Everyone everywhere needs to know about this simple solution!
View attachment 2664

 

[James48843]

I thought the FV process was defined by the SEC?

I don't think so.

I'm not postive, but I am pretty sure the SEC does not regulate the TSP.
While Barclays, the agent that executes, IS subject to the SEC, TSP funds are not mutual funds, and therefore do not fall under SEC rules.

I can't find any SEC filings from the TSP, therefore I am led to believe the SEC has no oversight over the TSP itself, or the TSP Board. Only Congress has oversight over the TSP Board.

I believe that if TSP follows SEC requirements on anything, it is because they have chosen to, not because they are required by law to do so.

 

[Talltimber]

Yes, Congress might put any ammunition we give them to good use. Maybe it was a Congressman who complained behind the scenes and got Ray moving, maybe a congressman in your district.

 

[fabijo]

The whole problem is the use of FV rather than actual value, and can be solved simply by moving the time the price is annouced from 7 p.m. to 7 a.m. the next morning. If they do that, they still have enough time to update all accounts, and it eliminates the possibility of a bad FV guess and a charge. No bad guesses, no charges. Simple. Clean. Easy.

According to the solicitation the Board made, part of the contract with Barclays was that Barclays would accept orders by 2:00, then give prices by 6pm. If they want to provide an exception for the I Fund, would the TSP need to put out another solicitation request for just the I Fund?

from here:
http://www.frtib.gov/procure/TIB-2006-R-003-solicitation.pdf

Accommodate a daily trading deadline for trading on a pre-notified
basis that is no earlier than 2:00 p.m. ET, with settlement the next
business day.

and here

The daily earnings (or net asset value) figures
are to be transmitted as soon as available each business day, but
no later than 6:00 p.m. ET.

 

[ezmoney]

First let me thank Spaf,Pratt,James and tsp support. I'm a newbie and I appreciate the emails I recieved from all concerning my activation and posting. That said I have fired off an email to my congressman and hope everyone who wishes to control their money has done the same. Does anyone know who at the tsp board that will accept the money I've made this year by unknowing clicking on the wrong buttons and transfering my money. I feel since I was so stupid in not knowing; that the only right thing to do is to give them all my profits back. I can not believe that the educated brilliant mathematicians, accountants and finacial experts could have made such a comment (that someone might click on the wrong thing).:suspicious: Thanks for letting me vent. Once again thanks for the help guys. ezmoney

 

[ezmoney]

Thanks, I just cast my vote. EZmoney

 

[Show-me]

Welcome to the mb, ezmoney!!!

 

[DayLate]

Got my vote in there. Hopefully somebody "important" will take a look at those numbers.

 

[Aviator_Guy]

Just tallied my total 2007 YTD IFT’s and it’s 61. The only IFT’s that I tallied were my moves from G to F, C, S or I. I didn’t count moves from those funds into the G. Limiting it to only two per month will be tough! When the TSP started, you could only move it once per month and only at the beginning of each month!!!

 

[Gilligan]

I thought the FV process was defined by the SEC?

Here is a link that OldSchool provided a while back concerning what the SEC has to say about FV’s.
http://www.sec.gov/divisions/investment/guidance/tyle043001.htm

For my two cents, I don’t think that the TSP Board should limit the IFT’s. We are a free country and many of the TSP account holders are veterans who have fought for the freedoms of the United States. Now a handful of TSP board members want to limit our IFT freedom.:notrust:

 

[The_Technician]

2 IFT's a month, doesn't that mean that if you trade into say the I fund, you get one more trade out of it........not good.:embarrest:

 

[benitocj]

I can not believe that the educated brilliant mathematicians, accountants and finacial experts could have made such a comment:suspicious:

Good point - anyone has the credentials of the people doing the new study? How about of the ones on the TSP board?

 

[Talltimber]

Here is a link that OldSchool provided a while back concerning what the SEC has to say about FV’s.
http://www.sec.gov/divisions/investment/guidance/tyle043001.htm

For my two cents, I don’t think that the TSP Board should limit the IFT’s. We are a free country and many of the TSP account holders are veterans who have fought for the freedoms of the United States. Now a handful of TSP board members want to limit our IFT freedom.:notrust:

I think it was a unanimous decision by the board with one member absent.

When they sold us TSP they said we could trade freely. They are not only limiting our freedom, but reneging on an agreement, and acting counter the CFRs.

Funny about the timing. Isn't congress pretty much in recess now? they might come back with an attitude when they see what has been done to their options.

 

[nnuut]

2 IFT's a month, doesn't that mean that if you trade into say the I fund, you get one more trade out of it........not good.:embarrest:

From the way I read it you get 2 trades between the funds and one out to the "G".
They don't treat the "G" as a fund!:nuts:

 

[DayLate]

Wow, another article from the man who started this whole thread and wanted one on one conversations with people who use "suspect Internet advice and subscription services that build models predicting where the market will go. " - Just an observation -

 

[fabijo]

The board said excessively frequent transfers drove transaction expenses up from $2.2 million in 2004 to more than $15 million in 2006.

Plus, there was more money in the TSP in 2006 compared to 2004. When they include price stats, I wish they would also include how that compares to the total amount within TSP. 2.2 million in 2004 is what percentage of the total in 2004? 15 million in 2006 is what percentage of the total in 2006?

 

[fabijo]

There is no question these windfall profits and income created by the Bush administration need to be taxed at 100% rate and those dollars redistributed to the poor and working class".

That's like shooting yourself in the foot. A tax on the rich hurts the poor more than it hurts the rich. The rich are the employers. If they get taxed more, they'll cut their costs by cutting jobs and/or pay. Plus the cost of the consumer goods they are selling will increase, thus causing inflation which is really a hidden tax on the poor by making their cost of living go up faster than their pay.

 

[Silverbird]

Madam speaker Nancy Pelosi wants to put a Windfall Tax on all stock market profits (including Retirement fund, 401Ks and Mutual Funds! Alas, it is true - all to help the 12 Million Illegal Immigrants and other unemployed Minorities!

This appears to be an email that made its way around the internet in 2006, and the information on the supposed Pelosi quote is an urban legend.

http://www.snopes.com/politics/soapbox/pelosi.asp

 

[Silverbird]

I'm the worrybird. I bite fingers of Senators with silly Tax packages. :nuts: Speaker's boring and won't be able to get anything done over the next two years with Congressmen (and women) too busy tying each other's shoe's together.

 

[kam]

Are you saying you like Nancy?

I like Nancy, but then, I'm a Dem...but Dem's are better for Federal Employees and when she speaks of "rich," she is not speaking about you or me.

On another note - has anybody seen this article from FedSmith today?

http://www.fedsmith.com/article/1431/

"Market Timing and Your TSP"