TSP board to limit interfund transfers

[tsptalk]

Re: TSP board limits frequent fund transfers

I know some have disagreed, but I keep saying they should charge a small fee per transaction. Don't tie our hands behind our backs. Charge a fee and let us do what we do.

The amounts they are talking about are such a miniscule percentage but they are using the dollar figures to make it look shocking. Fees went from 2.2 million to 15 million? How much has the total TSP balance grown in that time?

 

[FUTURESTRADER]

Re: TSP board limits frequent fund transfers

$2 billion/ 3,000 accounts is $66,666 avg account size. That's reasonable

 

[jlpost]

Re: TSP board limits frequent fund transfers

$2,000,000,000/3,000 = $666,666 not $66,000

 

[Talltimber]

Re: TSP board limits frequent fund transfers

The board said the excessive transfers are hurting TSP by driving up transaction expenses from $2.2 million in 2004 to more than $15 million in 2006.

3.8 million TSP enrollees

$15 million to serve 3 million people for a year?! This is a problem? That's $5 dollars a year per person. That's an incredibly cheap service they want to take from us.

$666k average, I see I have some catching up to do. I would like to see some details backing these numbers up, they seem to be pulled out of the, umm, ahhhh, air.

 

[FUTURESTRADER]

Re: TSP board limits frequent fund transfers

$2,000,000,000/3,000 = $666,666 not $66,000

right...sorry...that does seem a bit of stretch then.

 

[TRAFFIC_DOG]

Re: TSP board limits frequent fund transfers

I say "NO RESTRICTION WITHOUT REPRESENTATION!"

How about this question...

What part of that expense increase is DIRECTLY ATTRIBUTABLE to the arrival and management of THE L-FUNDS ??????

I'm actively trading now simply to make up for the the Thrift Board's PERNICIOUS MALFEASANCE in the administering of the TSP in the years running up to the final arrival of daily valuations !!!!!!!!!!!!!!!!!

....submission by the 15'th for execution on the 30'th.......PALEEEASE!

 

[Tempest]

Re: TSP board limits frequent fund transfers

Wait till 60 Minutes does a segment on TSP.

"Want to know which is one of the fastest growing retirement accounts in the country and is absolutely safe bet according to fund managers we talked to?
"Want to know where you pay no transaction fees for transfers?"
"The answer to those questions may surprise you..?
tick... tick.... tick... I'm Steve Kroft... I'm Leslie Stahl....

 

[Talltimber]

Re: TSP board limits frequent fund transfers

I know some have disagreed, but I keep saying they should charge a small fee per transaction. Don't tie our hands behind our backs. Charge a fee and let us do what we do.

The amounts they are talking about are such a miniscule percentage but they are using the dollar figures to make it look shocking. Fees went from 2.2 million to 15 million? How much has the total TSP balance grown in that time?

2.2-15 million for 3.8 million people is from $0.57 to the astronomical sum of $3.95 dollars per year for each customer, or a huge sum of over a penny a day per account.

They could save a lot of money in postage if they didn't send snail mail for every transaction.

Perhaps a graduated fee, 2 free trades a month, $2 each for the next 5, $4 each for the next 5, etc.. Pay to play.

Who chooses the board members?

 

[Frixxxx]

Re: TSP board limits frequent fund transfers

They could save a lot of money in postage if they didn't send snail mail for every transaction.

Perhaps a graduated fee, 2 free trades a month, $2 each for the next 5, $4 each for the next 5, etc.. Pay to play.

Who chooses the board members?

I agree on the postage....I get everything on-line...no postage necessary.

TSPTALK TOM FOR PRESIDENT OF TSP BOARD!

 

[DrFaustus]

If we don't have that option ... are you suggesting that we just go 100% C fund?

 

[budnipper1]

Re: TSP board limits frequent fund transfers

They could save a lot of money in postage if they didn't send snail mail for every transaction.

I don't receive anything by "snail" mail on regular routine transactions, do you? Maybe I opted out for that and just don't remember. I get monthly, or quarterly statements (not sure which) even though I thought I also opted out of that, too. Online access is all I really need to keep track of my account activity.

I'm wondering, what magic number have they determined to be an "excessive" trading frequency. Twice a month? Twice a week?

 

[Frixxxx]

Re: TSP board limits frequent fund transfers

I don't receive anything by "snail" mail on regular routine transactions, do you? Maybe I opted out for that and just don't remember. I get monthly, or quarterly statements (not sure which) even though I thought I also opted out of that, too. Online access is all I really need to keep track of my account activity. [/B]

I'm wondering, what magic number have they determined to be an "excessive" trading frequency. Twice a month? Twice a week?

If you place an e-mail address in the boxess for notification.....no letter is sent. I got one by accident when I was rushing a trade.

 

[budnipper1]

Two threads with almost the same title are confusing and unnecessary. (MHO) Could they be merged into one?

TSP board to limit interfund transfers
http://www.tsptalk.com/mb/showthread.php?t=5143

TSP board limits frequent fund transfers
http://www.tsptalk.com/mb/showthread.php?t=5144

 

[Talltimber]

Re: TSP board limits frequent fund transfers

The board would prefer to take the easy way out, setting up a way to charge fees would take some actual work.

 

[TRAFFIC_DOG]

Re: TSP board limits frequent fund transfers

The board would prefer to take the easy way out, setting up a way to charge fees would take some actual work.

BINGO!

 

[jlpost]

Re: TSP board limits frequent fund transfers

Just running some numbers here-

The board chairman is saying these 3000 participants cost $12.8 million in transfer fees? Thats $4267 average cost in trades per each of these 3000 participants.

If there were 250 trading days a year, and each of these 3000 participants traded eary day, the cost per trade would have to have been $17 each to total $12.8million.

If they each traded every other day the cost per trade would have to have been $34 to come up with a figure of $12.8million.

The other 3.8 million participants cost $2200000. $2.2m divided by the $17 trade cost means these 3.8 million participants did 129412 trades. Thats an average of .034 trades per year. Thats one trade per 3 years on average.

If we use the $34 cost per trade figure, then the 3.8 million participants did 64706 trades. Thats one trade per 6 years on average.

What about all the daily L fund rebalance trades?


That what the numbers seem to say. Believe them?

 

[Show-me]

Re: TSP board limits frequent fund transfers

Bastards!!!

 

[ChemEng]

can you explain to me what the unions have to do with this matter, you better talk to your senator or state rep not the unions by the way i am an union steward

First of all, I am not a union steward. So be forewarned.

If the TSP Board is tinkering with the policies of government employees retirement accounts, I would think that the unions would have a very strong interest in making sure the best interest of their members are protected.

 

[Oldcoin]

Re: TSP board limits frequent fund transfers

I would pay per trade if I got the benefits the same as I get from my regular broker.

1. 100 free trades a year.
2. No noon cut off.
3. Trades occur when ordered, not at days end.
4. I can put a price on the fund to trade at.

After all we’re paying for it.

 

[Show-me]

I'm going to move all of these posts to the other thread and reserve this one for folks that want to talk to Stephen.