TSP Transfer Fees and/or Transaction Limit Discussion

[fabijo]

I definitely like the analogy of the burgers! Makes sense.

And I especially like the reference to the U.S. Code. Very useful indeed.

 

[FogSailing]

I thank you both for well writtern letters stating important ponts. I also suggest someone send a copy to NARFE.

FS

 

[Show-me]

Nice job folks!!!

 

[James48843]

TO: Mike Causey

Total number of participants in TSP: Over 3.7 million
Total amount held by TSP for workers: Over $226 Billion dollars.

Average Administrative Expense ratio in 2000-2005: 6 basis points (0.06%).
Average Expense ratio in 2007- 1 basis point. (0.01%)

Costs are going down, not up with the TSP. Administrative costs of the TSP are one sixth as much as what it did just a couple years ago.

The implementation of TSP Loan fees now generates income for the administration of the TSP to the tune of millions of dollars every year. Those fees were imposed on TSP holders to discourage rapid loan turnover.

Now, you are talking about additional fees to discourage people managing THEIR OWN MONEY, not asking for offsets of true costs, but to impose a punishment to those who choose NOT to follow the Thrift Board's philosophy of saving for retirement.

Let me say this again- if fees are imposed, it's not to make up for any costs, but are being floated as an idea to stop people from moving money around, because that doesn't fit the Thrift Board's philosophy of how WE should manage OUR OWN money. What kind of idea is that?

I read the FEDERAL RETIREMENT THRIFT INVESTMENT BOARD meeting minutes every month, and stay very informed about my retirement money.

There is NO reason to charge “User Fees” to access our own money simply for moving our own money between funds. We, who are continuously educating ourselves to make good decisions for our own financial future, should NEVER have to pay the TSP to hold and move OUR own money.

Do I move funds from time to time? Yes.

Have I been more successful than a simple “buy and hold” strategy? Absolutely yes.

Should they charge fees to move our money between funds?

ABSOLUTELY NOT!

Just say no to TSP User fees.

Signed-

A TSPTALK devotee.

 

[crhuss]

Here Here!! Great job. I did it with logic, you did it with statistics and logic. I am very impressed. This is really fun!!!

 

[Foghorn]

I sent an email.

Thanks guys for creating this thread and for posting some samples to use.

Foghorn

 

[amauldin]

Re: ebbnflow's Account Talk

Before I threw my opinion out there on whether or not additional fees would be fair, I'd like to know more about how exactly TSP is run behind the scenes. Exactly how many people are there employed making these transactions, handling paperwork, etc? Have they needed additional people to cope with all our transfers? Has someone ever posted an article or a link with that sort of info in it?

 

[airlift]

Sky and Tom,

After minimal modifications, I sent the suggested text to Mr. Causey.

 

[Show-me]

Re: ebbnflow's Account Talk

Before I threw my opinion out there on whether or not additional fees would be fair, I'd like to know more about how exactly TSP is run behind the scenes. Exactly how many people are there employed making these transactions, handling paperwork, etc? Have they needed additional people to cope with all our transfers? Has someone ever posted an article or a link with that sort of info in it?

Welcome to the MB!

 

[Aspiration]

I sent one as well. I was part of that original 4-1 group...

 

[Hendricusl]

Is there anyway to give feedback to the TSP Board directly. Mr. Causey (from what I understand) is just a radio show host. Would we be better off to engage the decision makers directly?

 

[Aspiration]

Hendricus,

That is a good point that I, too, have been mulling over. SkyPilot provided a mailing address for the board. I've been trying to get off my lazy duff an go write the letter.

Having worked in a part of an agency that handles comments, I have to say we only put weight in comments submitted directly to us. I cannot recall ever weighing comments submitted to non-agency websites...


Asp

 

[KCinKC]

Bravo SkyPilot!

With your suggested letter, I've added one more line to the end of the letter:

It is un-American and foolish to follow a Socialist pattern where the government controls an individuals retirement, “from cradle to grave,” (first day of employment to retirement day), while an individual is employed by the government.

 

[12%ayear]

Remember people, TSP can do whatever they want and can careless about our e-mails. Think about it, every time we trade, they have to mail out a confirmation which costs money. Everytime we trade, it changes the books for them and the accounting, that costs huge money. Although, I hope they do not stop trading, however; it would not surprise me. They want to go back to the once a month I heard. TSP's main excuse will be we are not in the trading business but the retirement business.

 

[USNAVYRETIRED]

Remember people, TSP can do whatever they want and can careless about our e-mails. Think about it, every time we trade, they have to mail out a confirmation which costs money. Everytime we trade, it changes the books for them and the accounting, that costs huge money. Although, I hope they do not stop trading, however; it would not surprise me. They want to go back to the once a month I heard. TSP's main excuse will be we are not in the trading business but the retirement business.

12%... They don't mail out the IFT's if it's done online. We get an email confirmation and I'm sure that's automated, so there should be no additional expense for TSP as long as the IFT's are done online.
Like someone else here on TSPTalk said, most of these people don't know the difference between the G and F fund, so why should they care. They just contribute to their TSP accounts and never even look at it.....

 

[12%ayear]

12%... They don't mail out the IFT's if it's done online. We get an email confirmation and I'm sure that's automated, so there should be no additional expense for TSP as long as the IFT's are done online.
Like someone else here on TSPTalk said, most of these people don't know the difference between the G and F fund, so why should they care. They just contribute to their TSP accounts and never even look at it.....

There are a ton of people that trade USNAVY and many get confirmations through the mail. Just like TSP changed the loan program, they will change this. I hope I am wrong. TSP hates to do any thing extra I was told. http://washingtontimes.com/article/20070904/NATION06/109040043/1008 In March, roughly 35,000 TSP investors moved about $1.7 billion from the stock index funds — mostly the I Fund — into the Treasury securities or bond funds. TSP officials said they "discourage active trading" because the TSP is a long-term investment

 

[smine]

I wrote a letter to lobby for later trading times, so we could have a more level playing field; I was of course chastised for suggesting we trade like real people! Imagine how much better we could do for ourselves and TSP if we could make our moves at 2:30pm instead of 2.5 hrs after the market opens!

 

[SkyPilot]

Remember people, TSP can do whatever they want and can careless about our e-mails. Think about it, every time we trade, they have to mail out a confirmation which costs money. Everytime we trade, it changes the books for them and the accounting, that costs huge money. Although, I hope they do not stop trading, however; it would not surprise me. They want to go back to the once a month I heard. TSP's main excuse will be we are not in the trading business but the retirement business.

That is why it is important to request email confirmations instead .

The accounting and trades are electronic and automatic, so the expenses are actually minimal and inevitable as the system must run and be maintained used or not.

In addition, the daily rebalancing of the L fund are just another series of IFT's done by TSP for the individual, rather than the individual doing it themselves. Therefore, wether personal IFT's or L fund IFT's, it's essentially the same and equivalent, and if there is an expense incurred by IFT's, we are already being charged for those using the L funds.

To justify charging to do your own IFT rather than opting for the L funds would be difficult, as changing an item in the CFR is not something easily done.

 

[SkyPilot]

Address for the FTRIB

Hendricusl, good idea!

You may also send a letter to:

[SIZE=-1]Federal Retirement Thrift Investment Board
1250 H Street, NW Washington, DC 20005-3952

There does not seem to be an email address available anywhere. Maybe some one else can find one?

Yes, it does make a difference, if they know we are aware and watching!
[/SIZE]

 

[airlift]

Could someone please clarify the original rationale or reason for allowing us to do daily IFT's?

My gut tells me that this has much to do with envy making its way into our success! I wish that I am wrong on this point.

For their own motives and short-sighted reasons, some people don't like to see others with more than one shirt!