TSP Warning Letters

[hessian]

It is all VERY confusing.
- Just looking at the letter (what I received) - it alone is ambiguous.

I took my initial read from Paragraph #4.

Now I see that in Paragraph 7, it says:
["Therefore, unless you reduce your IFTs to no more than three per month (starting in February), we may notify you that you will be required to request your IFTs by mail..."]

I don't want to risk having to do "snail-mail," so this latter, bolded wording is what I'm personally going by.
I have to interpret this for myself -by the letter sent me -until there further official rule/correspondence.

No disrespect is intended if other's have different views, or have found other info posted elsewhere.
Very appreciative and respectfully,
Thanks, All!

 

[Fivetears]

I wonder how many you can do by mail? :nuts:

 

[sugarandspice]

Why send letters in the first place?

3000 get letters to tell them if they don't stop their TSP behavior then restrictions will be placed on them. These 3000 are notified by a letter even though these same restrictions have been posted on various other sites and apply to all TSP members. Or do they? Shouldn't all members be notified by letter? What if your behavior changes and you make more than 3 in a month for the first time ever in your life. Are you restricted? You didn't get a letter so how would you know? The letter seems more and more like a threat.

 

[qibovin]

I wonder how many you can do by mail? :nuts:

Unlimited, as I understand it, from the current wording of the law. (Please correct me, legal scholars, if I'm off.)

 

[gewoodfo]

Hi All:

I got mine on Saturday! I like the idea of fighting this legallly: But like others in this, I cannot afford to start a lawsuit!!

Surely there must be lawers out there who could give us some advice.

Hey, here is a wild and crazy idea, How about going to the Americain Civil Liberites Union? Can you image the press: them fighting the govt on behalf of a small subset of govt. employees?

Later!!

 

[Viva_La_Migra]

I haven't received a letter as of yet, but if I do, and I am restricted to mailing in my transfers, I'm just going to move 1% in and out of a fund each day. It will cost me stamps, but it will cost them more in manpower to process the mail and make the trades!

When they see how much this is costing them, they will either back off, or take more draconian measures to prevent us from moving our funds around.

 

[Idaho Dave]

I got my letter the other day and decided to ignore it. I expect we'll have the Gestapo visiting our houses and taking away our stamps as their next move to limit transfers.

 

[sugarandspice]

So if I have money in all 9 funds (Excluding G) then I can transfer 9 times back into the G fund. Thats 9 IFT's. plus 3 I get to the other funds? And TSP is going to build in software that flags my account if I am transferring to any other fund other than G. Come on! If that is the case and they are "making software corrections" this has computer glitch/meltdown all over it. People that have no idea what kind of changes are being made will soon find out because the WHOLE system will haywire.

 

[FUTURESTRADER]

Who's made or making their third IFT of the month today? Who's gonna admit it? Maybe not a good idea to reveal in here? TSP board spies?

 

[DrFaustus]

So if I have money in all 9 funds (Excluding G) then I can transfer 9 times back into the G fund. Thats 9 IFT's. plus 3 I get to the other funds? And TSP is going to build in software that flags my account if I am transferring to any other fund other than G. Come on! If that is the case and they are "making software corrections" this has computer glitch/meltdown all over it. People that have no idea what kind of changes are being made will soon find out because the WHOLE system will haywire.

dont forget that a transfer to the G fund can count against your IFT limit if you haven't made the allowed number of IFTs yet

 

[Fivetears]

This post is for any TSP Board Member searching aimlessly through this MB forum for direction;

GET YOUR DAMN ACT TOGETHER and DRAFT SOME CLEAR INTERFUND TRANSFER RULES!

 

[Callme_CO]

I've made my 3rd this month....what are they going to do? come and get me. I fight with criminals every day what's one more.

 

[qibovin]

This post is for any TSP Board Member searching aimlessly through this MB forum for direction;

GET YOUR DAMN ACT TOGETHER and DRAFT SOME CLEAR INTERFUND TRANSFER RULES!

I'm not wasting my time looking, but I'm guessing that the "rules" are listed on the TSP website somewhere as something to the effect of "no more than one IFT per day."

 

[tsptalk]

So if I have money in all 9 funds (Excluding G) then I can transfer 9 times back into the G fund. Thats 9 IFT's. plus 3 I get to the other funds? And TSP is going to build in software that flags my account if I am transferring to any other fund other than G. Come on! If that is the case and they are "making software corrections" this has computer glitch/meltdown all over it. People that have no idea what kind of changes are being made will soon find out because the WHOLE system will haywire.

Theoretically, according to the new rules, we can make a transfer everyday if weu are in the stock / bond funds and want to move into the G fund.

Monday 100% C
Tuesday 99% C / 1% G,
Wednesday 95% C / 5% G
Thursday 90% C, 10% G,
Friday 80% C to 20% G,
Monday 75% C, 25% G,
etc....

So, we can dollar cost average out of stocks, but not into stocks.

There is a compromise out there somewhere but they don't seem to want to negotiate, even though they have not put much time and effort into a reasonable solution.

 

[Megansh]

Interfund transfer friends..... after reading all of the TSP Board's propoganda..they continually cite the IFT's in and out of the "I" Fund as 88% of the increase of costs from 2006 on associated with their perceived IFT problems..... I wrote my senator and told them to look into this if only the "I" Fund is the culprit then change that IFT rules ONLY on the "I" fund and leave the G, F, C, S Funds alone .. MIke in New Hampshire

 

[TonyMan]

When they stop spending huge amounts of money to "rebalance" the L Funds daily, then I'll stop "rebalancing" my account as I see fit. I wish everyone here would start refering to inter fund transfers as rebalancing their account. We move our money only a fraction of the amount being moved daily in the L funds. Everything is in the label they slap on our IFT. By labeling it "Day Trading", which it is not, they win with the masses. I rebalanced my account to 100% G Fund last Tuesday and haven't touched it since. I've saved them a huge amount of money this week, by not rebalancing my account daily as they have done with the L funds.

TonyMan

 

[nnuut]

Theoretically, according to the new rules, we can make a transfer everyday if weu are in the stock / bond funds and want to move into the G fund.

Monday 100% C
Tuesday 99% C / 1% G,
Wednesday 95% C / 5% G
Thursday 90% C, 10% G,
Friday 80% C to 20% G,
Monday 75% C, 25% G,
etc....

So, we can dollar cost average out of stocks, but not into stocks.

There is a compromise out there somewhere but they don't seem to want to negotiate, even though they have not put much time and effort into a reasonable solution.

So if you only move to the "G" or after your 1st IFT you only transfer to the "G", there is NO limit.
From TSP site:
Q2. What are the new restrictions on interfund transfers?
The Thrift Savings Plan will implement restrictions on the number of interfund transfers a participant can make per month in order to curb frequent trading and its associated costs to TSP participants. However, the TSP does want to provide the opportunity for participants to rebalance their accounts and to permit unrestricted access to the Government
Securities Investment (G) Fund. Accordingly, the restrictions would be as follows:
Participants can make two (2) interfund transfers per calendar month. After that, they may only move money from the Fixed Income Index Investment (F) Fund, the Common Stock Index Investment (C) Fund, the Small Capitalization Stock Index Investment (S) Fund, the International Stock Index Investment (I) Fund, and the L Funds to the G Fund.

We will count the interfund transfer based on its process date, not the date the interfund transfer was requested.


If your first or second interfund transfer in a month moves money only to the G Fund, it still counts toward your two (2) interfund transfers per month limit.

 

[NyteTracker]

When they stop spending huge amounts of money to "rebalance" the L Funds daily, then I'll stop "rebalancing" my account as I see fit. I wish everyone here would start refering to inter fund transfers as rebalancing their account. We move our money only a fraction of the amount being moved daily in the L funds. Everything is in the label they slap on our IFT. By labeling it "Day Trading", which it is not, they win with the masses. I rebalanced my account to 100% G Fund last Tuesday and haven't touched it since. I've saved them a huge amount of money this week, by not rebalancing my account daily as they have done with the L funds.

SPOT ON!!!

 

[Alamo]

People,
All I read on this thread are complaints! Quote:
"(TSP) This is a retirement fund, not a day-trading account," Brown (Richard Brown, vice chairman of the thrift advisory council) said. "The goal here is what is for the greater good of all, not for the greater good of a few."

Keep it simple, if you want to play foolishly with your retirement money then start an account outside TSP and day trade away... I resent the actions of a few costing me gains. I see few making any better gains by making numerous IFTs. By the way, if you folks really knew how to invest, you'd be working up on Wall Street and not on the Federal dole.

 

[Show-me]

Nice to have you on the message board. Welcome.