TSP board to limit interfund transfers

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You know all this discussion about the Fair Evaluation for the I Fund and the problems it causes and ways to ease the problem such as reporting later with no FV, what about switching to the EFA which is an ETF? It is largely (though not totally the same). It certainly wouldn't impact anyone who was a "buy and holder" who had the I fund since for the long haul, the current I fund and EFA are virtually the same.

For the short term, those of us who trade more frequently would have to make some adjustments. Not too many since I have done some back testing with my current (new) strategy and am quite pleased with results.

So what about an ETF such as EFA instead of the Barclays International fund in its current form as implemented as an option for TSP? Yahoo has very clear beginning of business quotes and cob quotes for EFA so wouldn't that solve the problem?

Maybe there are higher trading costs trading an ETF as compared to if you trade directly with the "source" such as Barclays, just speculating...
 
Trading cost of the I Fund Jan. to Sept. is $12,240,419. One month stands out, August with $10,522,348 or 32.7 basis point in trading cost. How in the hell did they blow that month so bad. Come on, 32.7 basis points!!!

In order 4.8, 24.3, -11.7, 11.8, 5.7, -0.6, 1.2, 32.7, and -2.7 basis points. February, April, and August killed the I Fund for trading cost.
 
I recommend the contributions to the TSPShareholder organization to be recurrent and on a monthly basis just like union fees so the organization may have a budget to operate... even if it is $5 per month but on a consistent basis would be better than $60 once a year.... Just an idea... :)

James48843 said:
Note:

We've opened the TSP Shareholder's Organization, as a central place to fight back through "think tank" and political lobbying.

Visit http://www.TSPSHAREHOLDER.ORG for more information. Several of us here in TSP TALK are the base members, and we're looking for all the help we can get.

Thanks
Click to expand...
 
LET'S MADE THE ONE FRONT AND LOUD VOICE OF THE TSP SHARE HOLDERS AT TSPSHAREHOLDER.ORG...
LET'S BE UNITED AND SYNERGIZE ALL OUR EFFORTS AND RESOURCES AT TSPSHAREHOLDER ORGANIZATION....
LET'S CLAIM OUR TSP RIGHTS AND OWENERSHIP OF OUR RETIREMENT BENEFITS AND ACCOUNTS...
LET'S HELP THE TSP BOARD TO SERVE AND SEEK THE WELLBEING OF THE
TSP SHARE HOLDERS... :mad:
 
IF the TSP board implements the the rule of just once a month round trip (two inter-fund transfers per month), I may borrow $50,000 to the TSP and open an account at Charles Schwab or Fidelity or Ameri-Trade to be able to perform as many IFT's as need it to maximize opportunities from the EFA (iShares) moves.

If everyone does the same, you may imaging the lesson for the TSP Board.

We will be withdrawing almost 200 billions... I doubt they could effort it.
 
ekatteng said:
IF the TSP board implements the the rule of just once a month round trip (two inter-fund transfers per month), I may borrow $50,000 to the TSP and open an account at Charles Schwab or Fidelity or Ameri-Trade to be able to perform as many IFT's as need it to maximize opportunities from the EFA (iShares) moves.

If everyone does the same, you may imaging the lesson for the TSP Board.

We will be withdrawing almost 200 billions... I doubt they could effort it.
Click to expand...

Do you know if there is any alternative to preserving one’s capital as we can with the G Fund if one were to transfer their TSP accounts to accounts such as Charles Schwab or Fidelity or Ameri-Trade?
Thanks in advance.
 
Finaly saw a bit of a definition of what a 'frequent trader' is : 8 trades of the I fund in 60 days. Whether that means to and from the I-fund , I am not sure. Even so that means that if you make 4 trades in a month then you are a frequent trader. So they are looking to cut that in half. Seems reasonable only a 50% reduction in trading :toung:. Any other takes on the TSP boards term 'frequent trader' ?
 
Milson said:
Anyone received a 'Letter' yet? Curious as I'm still trading and wonder if I should scale back any.
Click to expand...

Milson,

The Code of Federal Regulation sez you have "no limits on interfund transfers". Until they "change" the Code you are fine. If they lock you out after they send you a letter and because you continue to transfer more than two times a month. Then any attorney with a ounce of ambition will jump at the chance to defend you against them.

JMO.
 
ekatteng said:
IF the TSP board implements the the rule of just once a month round trip (two inter-fund transfers per month), I may borrow $50,000 to the TSP and open an account at Charles Schwab or Fidelity or Ameri-Trade to be able to perform as many IFT's as need it to maximize opportunities from the EFA (iShares) moves.

If everyone does the same, you may imaging the lesson for the TSP Board.

We will be withdrawing almost 200 billions... I doubt they could effort it.
Click to expand...


$10,000 is the max. for a personal loan. $50,000 is for a home.
 
I've tried to read as much of this as possible, and this may have already been discussed. My understanding is that the I-Fund is the one that is causing so many problems and so much expense for the TSP. If so, is there a possibility that there would be a limit on the number of trades for the I-Fund only, but that there would still be unlimited trades for the C and S-Funds?
 
ContrarianJeff said:
I've tried to read as much of this as possible, and this may have already been discussed. My understanding is that the I-Fund is the one that is causing so many problems and so much expense for the TSP. If so, is there a possibility that there would be a limit on the number of trades for the I-Fund only, but that there would still be unlimited trades for the C and S-Funds?
Click to expand...

If you look at the data they are publishing, the "I" is the most expensive for them to trade and administer, followed by the "S". The least costly stock fund for them is the "C". The F fund also has more costs associated than the G.

So, for me, in honor of keeping my "friends" (and I use the term loosely) happy- I am focusing on making my trades between C and G.

Just my 2 cents worth....

Although it is STILL much less costly to them for I and S than anything comparable in the private sector- on an order of magnatude of around 10. That is to say, expenses, adminstrative fees, and real market costs for TSP are one-tenth the costs of similar private sector fees.
 
All fund have to be settled at the end of the day and the share price must be posted as per contract between TSP and BGI. BGI has to go by open market rule of three days to settle trades and they buy futures contracts.

I Fund cost are high also due to FV and having to buy and sell individual stocks on individual exchanges the next day when the OSM open. It is not traded as a index fund.

S Fund cost are high also due to the huge number of individual small cap stocks that have to be traded. It is not traded as a index fund.

C Fund cost are low because it is traded as a index fund and the futures contracts are a index fund also.
 
anidoc said:
Off topic but good news...this afternoon GW signed an Executive Order excusing all us FEDS from duty on Christmas Eve! Happy Holidays!
Click to expand...

Do you have an email stating this? Usually those things are left until the last minute.

I'd appreciate any info you can provide.

Thanks.
 
Please excuse me for being the slow kid on the block (I'm only 63), but if I stay in the I fund and 'rebalance' my account every nignt so I always have the same no. of shares in it, would that be considered frequent trading? If not, how is that different than moving money from one fund to another? Also, if that is 'frequent trading', how in the heck is that different than the L-fund rebalancing every night.:confused: This has been nagging at me from the begining of this mess and I think I finally found the words to express it. Or do I just not get how any of this works?:laugh::o
 
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