TSP DOING BIG Change

[learning]

I have heard that TSP is setting it up that we will be limited to two changes a month. They have said that a few people have been doing a lot of changes and they are going to stop it. It cost them to much. Those that do a lot of changes will get letters and it is said that it will happen this next year. Approximately in June, 2008. The TSP board was said to have voted on it and all said yes to the new rules. I would suspect that others have to give the ok. When the change comes out formally it will take time to set it up. Until they have it set in place that they can stop to many trades with the computer they will take people that continue to do a lot of trades and make them mail in request for trades. I did hear that they will allow more then the two trades if you go from one of the other funds to the G fund. So you can run to safe shelter even if you have done more then two trades. This is what I heard. They are getting ready to send notices to all about the changes and it will take time to do it. Of course I do not believe tell I see it, but, I think it would be wise to keep you ears to the ground now.

 

[ChemEng]

Check out this thread for lots more additional info.

 

[presskh]

Here is my response to the 11/27/07 TSP Corner article, which was effectively in favor of limiting the number of interfund transfers:

"It would be interesting to see just how much it cost every TSP participant to set up and maintain the L funds. Since each L fund account is rebalanced each day to match the monthly target underlying fund percentage, this is, effectively, an interfund transfer on each of these accounts every day. How does this differ from individual account holders making their own interfund transfers? If the argument for limiting individual transfers is that it is unfairly costing traditional "buy and hold" investors, then it is also unfair that they should have to help pay for the extra expenses associated with the L Funds."

I urge all TSP Talk participants to give their own replies.

Keith