TSP Warning Letters

[Birchtree]

I would think that if you move from the C fund to the G fund whether in 2% increments or 75% or 100% that does not constitute an IFT. However, if you move from the G fund back into the C fund that would be regarded as an IFT. Or if you move from the G fund or C fund into the S fund that would constitute an IFT. I can DCA going up into the G fund without penalty but would not be able to DCA more than 2 or 3 times into a particular fund like I did into the I fund making multiple purchases - this will have to be done with payroll contributions which is what I've done with the C fund for years. I would think that one round trip would eat up the monthly IFT. For example - if I moved 100% from the C fund into the S fund that is one IFT - when I move back to the C fund or even the I fund that is another IFT and my choices are finished, unless they are going to allow 3 IFTs/month. So is it 2 or 3 moves per month?

 

[Barney]

Yes! :cheesy:

I would think that if you move from the C fund to the G fund whether in 2% increments or 75% or 100% that does not constitute an IFT. However, if you move from the G fund back into the C fund that would be regarded as an IFT. Or if you move from the G fund or C fund into the S fund that would constitute an IFT. I can DCA going up into the G fund without penalty but would not be able to DCA more than 2 or 3 times into a particular fund like I did into the I fund making multiple purchases - this will have to be done with payroll contributions which is what I've done with the C fund for years. I would think that one round trip would eat up the monthly IFT. For example - if I moved 100% from the C fund into the S fund that is one IFT - when I move back to the C fund or even the I fund that is another IFT and my choices are finished, unless they are going to allow 3 IFTs/month. So is it 2 or 3 moves per month?

 

[nnuut]

I'm sure that if you move ANYTHING they count it as a move! Crooks!

 

[FUTURESTRADER]

my take:

Start 100 C; move 25 to G = 1st IFT, = 75C, 25G
move another 25 to G = 2nd IFT = 50C, 50G
move 5 more from C into G = 3rd IFT = 45C, 55G
remaining 45C in 5% increments into G = 9 additional IFTs = 100G

= 12 total IFTs

load up, then nibble out

If your first two moves are in to G, they are considered your two IFTs for the month. I don't think you can make an IFT into any other fund after that other than unlimited increments into G

 

[FUTURESTRADER]

question is will they allow unlimited transfers by mail?

 

[Oldcoin]

If I am 100% G and I reallocate 25% each to the C, S and I, have I made three moves or one? I do this from time to time………

 

[Rod]

It's a bluff, plain and simple. Hence the "may" language in the letter they sent out.

EGGZACTLY

CALL IT

 

[nnuut]

I think we need a clarification of how this works, EXACTLY!:suspicious:

 

[Gritz]

Got my letter as well, makes one want to seek out an attorney. We are using our thrift funds as we deem best, according to their rules. I'm sure this has been asked before but would some of you explain for me how they can legally restrict a small group of us while all other participants may trade as often as they like?

 

[hessian]

Hey all,
Got my letter today - Sure sucks (EMS,TR:toung.

To Old Coin,
In paragraph #4, they say they'll "permit two IFT's (account rebalancings) per calender month" - this seems clear to me as addressing your question: to say rebalance, to say: 20,20,20,20,20 - as long as its all in one day - this counts as one IFT.

Also note, in the same sentence they say: "with subsequent unlimited IFTs into the GovernmentSecurities (G) fund." - keyword here is "unlimited" -IFTs to G - I expect this means moving any allocation, all to the G-Fund (even if its only 1, like "F"). This means you can do this at least 2 times, maybe even a 3 times (since they say "unlimited IFTs to G").

To Rod,
I agree, but I'm personally afraid to test whether this is a bluff -
I expect someone, and likely that quite a few folks will - so sure would be great to get feedback from whomever chooses to ignore (or just naturally finds they cannot abide by) what they "request" in their letter (pargraph #1), or, as they say in paragraph #6 "...asking [us] to voluntarily change [our] investment strategies."

Recommend to discuss with Tom, if there are any volunteers to go for testing their metal, to somehow privately get this feedback?? -(so rest of us can know)?

 

[RAE]

Got my letter as well, makes one want to seek out an attorney. We are using our thrift funds as we deem best, according to their rules. I'm sure this has been asked before but would some of you explain for me how they can legally restrict a small group of us while all other participants may trade as often as they like?

Got my letter today, too.........YESSS!!! (I was beginning to feel left out, ha). Gritz - they can't legally restrict a small group. They haven't even defined what a "frequent trader" is, for one thing. My advice, again: don't change ONE THING if you received one of these letters. They can't penalize you for managing your money as you see fit! Why would anyone change the way they want to manage their TSP account, based on an obvious bluff like this? What are they going to do to me if I keep making as many IFT's as I like??? Nothing, because they have no legal authority to impose restrictions. What I really want to know is the first time someone is blocked from making an IFT on the TSP website........now that will be big news. If anyone experiences that, please let us know immediately. But I don't expect that to happen anytime soon, because they have not taken the required steps to even begin to make those changes to the TSP software. THIS IS A BLUFF FOLKS, DON"T FALL FOR IT......THAT IS EXACTLY WHAT THEY ARE HOPING WE WILL DO!! Don't give them that satisfation, it is YOUR MONEY.

 

[Rod]

I'm jealous...

WHERE'S MINE???:toung:

 

[nnuut]

It's ok Rod, I'll send you a copy of mine!
Wait maybe GOD is protecting you?

 

[Show-me]

Probably not that divine, more like it is delayed in the mail. :laugh: Mine did.

 

[Oldcoin]

Thanks Hessian, that’s what I thought, but you never know.

I’m kind of irked that I didn’t get a letter, but it seems my trades during that time frame didn’t make the mark. If I got one I was going to frame it and hang it at work…..something to be proud of.

 

[alevin]

If I am 100% G and I reallocate 25% each to the C, S and I, have I made three moves or one? I do this from time to time………

Guys, guys, I can assure you, speaking as someone from the very first years of TSP over 20 years ago, that when we only had 1 IFT a month, we could redistribute $ among the 5 (oops, meant 3) funds as we pleased for a single IFT date (IFT would not occur until start of new month, we had to make IFT request 2 weeks prior). Things could be so much worse than they are threatening now, at least now we'd be able to pick the 2-3 dates for our IFTs and have it implemented within the "prompt" timeframes you already know and love.

I'm kinda jealous, kinda like Rod, if TomNCath got a letter for the one month they misbehaved, I should be getting one too for my month of getting overexcited (made me a boodle that month too, made up for some bigger losses earlier). Must be delayed, we had a lot of snow earlier this week. :suspicious:

 

[Tomncath]

I honestly DIDN'T expect to get one....

 

[NyteTracker]

Keep in mind their "fine" print-
The heck with them... IFT away until and IF the limits go into affect.

Good catch Rod.

asking them to voluntarily change their investment strategies…

we may require…

Sounds more and more like a bluff.

btw; nice return for a down month.

 

[k2ds]

Got mine today.
I spit on it, tore it up and put it back in the mail to them.
Would be Great if everyone would do the same. Load up their mailbox with trash.
Really let them know what we are thinking....

 

[Hallatauer]

I'm going to respond... I typed a letter just to let off some steam. Now I'll rewrite it without so much vitriol. heh