What YOU can do to fight back - IFT limit

[jellobrains]

Well after they shove the trade limits down our throats I'll be very anxious to see at the end of next year how all this MONEY they'll be saving will impact my account. Something like $2 a year.............:notrust:

 

[TRAFFIC_DOG]

Sadly, I'm not feeling good about staving off these changes.

I understand the sheep with small balances not giving a flip or even harbouring a perverse jealousy towards those who might be benefiting from skills and opportunity which they may not have.

Having over 600k now, my system is to lighten up, using several IFT's when my indicators show overbought. I also work back in over several IFT's.

Many days I am equally happy to see either red or green at the end of the day.
What could be a better system for restful nights?

I am limiting my exposure to a 2000-2003 scenario in a huge way, while also out performing buy and hold during up years.

I am happy... and a am securing my retirement and providing for my family's future in a responsible way.......

Shame on the TSP board to take this away!
Shame on the small minded to delight in my future loss...............

 

[weatherweenie]

Interesting replies that I have received from a regionwide email that I sent out regarding the proposed TSP restrictions. I received ONE positive reply. The rest were negative, along the lines of 'those darn daytraders!'

I hope it was a joke, but one reply was, 'what is this TSP that you're talking about?'

 

[Viva_La_Migra]

more reply to my email: After reading Scott Rudge's reply to you, there's not a way in the world
that I'd be signing a petition. Also, I question your use of government
e-mail. The whole matter of TSP reducing the ability to change is also
best discussed by the union.

Well said Mr. Rudge! Thanks for this message. I want to also add that
in my opinion, part of the reason the stock market is so jittery is
because of the actions of "day traders". If a person happens to want to
use the TSP to day trade and try to outdo the market, that is an unwise
practice. I learned long ago in private investing that trying to time
and beat the market is a losing battle - I eventually lost a lot. I am
now content with just letting the market do what it is going to do,
because retirement is 10 to 15 years away.
Derek Frey/ NWS Hastings

I'm sorry you work with such sheeple!:laugh:

 

[weatherweenie]

more reply to my email: After reading Scott Rudge's reply to you, there's not a way in the world
that I'd be signing a petition. Also, I question your use of government
e-mail. The whole matter of TSP reducing the ability to change is also
best discussed by the union.

Well said Mr. Rudge! Thanks for this message. I want to also add that
in my opinion, part of the reason the stock market is so jittery is
because of the actions of "day traders". If a person happens to want to
use the TSP to day trade and try to outdo the market, that is an unwise
practice. I learned long ago in private investing that trying to time
and beat the market is a losing battle - I eventually lost a lot. I am
now content with just letting the market do what it is going to do,
because retirement is 10 to 15 years away.
Derek Frey/ NWS Hastings

 

[weatherweenie]

here's a reply to my email: All,
The TSP was never meant to be a day trading account, but many have been
using it as such since we gained the ability to adjust our accounts at
any time. Every time a TSP participant switches funds, that adds to the
administrative cost of the TSP, and therefore reduces the net gain on
all participants TSP accounts. In essence, the TSP community is
subsidizing trades for a small number of participants who feel the need
to try and beat the market. I believe this is why the TSP board wants to
reduce the number of intrafund transfers to 2 per month, with the
ability to place all of your account into the G fund at any time. This
seems reasonable to me given the original purpose of the TSP, a long
term savings plan. If TSP participants feel the need to be able to make
more than a couple of trades per month, then there are avenues available
to do this. One would be to reduce your TSP contributions and place that
extra money into one of the several day trade accounts available online.
Then you could trade to your heart's content without driving up the
administration costs in the TSP for the rest of us. Please take the time
to read the information regarding this topic on the TSP website. Just my
two cents.
Scott Rudge
NWS Rapid City.

 

[weatherweenie]

Hopefully it won't backfire, but seems I got the attention of our region's HQ regarding a mass email I sent out. The region contacted my boss's boss to find out if I had sent out Spam. I told them/him, no I sent this out because I figured most of the TSP participants out there aren't aware that the TSP board is planning on restricting participants.

This is what I sent out:

http://www.thepetitionsite.com/1/reverse-the-decision-to-limit-tsp-
interfund-transfers

The TSP board is planning on limiting your ability to move your TSP
money. Whether you actively manage your TSP account, or not, revoking
this freedom is wrong. Help stop this action by signing the petition.
Feel free to send this email to others you may know that have money in
the TSP.

Thanks for your support

 

[jazzy]

I am opposed to these new restrictions, and I have written the FRTIB about my opposition and I have questioned its authority to make these restrictions. In addition, I have asked my two US senators for support in this matter as well as the NEA. These restrictions are in opposition to what we FERS people have always been told, even by the President: " You have the freedom to manage your retirement fund as you see fit."

 

[James48843]

I was reading through the GAO audit of TSP today (from June, 2007), and found this interesting quote in it, from Greg Long, Executive Director of teh FRTIB. It just reinforces what we have found in many other sources.....the administrative expenses of the TSP are very low now, and getting lower as time goes on and assets increase. Therefore, their claim that expenses have increased greatly due to frequent IFT's by a small number of TSP participants is BOGUS! If you need a quote from Long to include in your letter(s), consider using this one:
________________________________________________________________

"We concur with the use of benchmarking of costs in appropriate situations. The Agency is always mindful of its responsibility to ensure prudent use of TSP resources. In fact, as the report notes, overall TSP administrative costs, which include all Agency expenditures, compare extremely favorably with private sector 401(k) plans, which we view as the most appropriate benchmark. TSP total administrative costs, including all record keeping and staff costs, as well as investment costs, were only three basis points in 2006. This is far lower than the reported costs of any other 401(k) plan (the report cites an average of 75 basis points) and is in fact several times less than the reported investment expenses alone for the cheapest 401(k) plans."

This is a good one. I'm going to use that one again.

Don't know yet exactly where, or with whom, but it is a good one worth saving.

 

[James48843]

James,

You can do this manually, put a minimal amount in TSP and the rest with a internet broker.
However, you need to anlyize your bottom line on which aproach would serve you best

I'm not talking about NEW money, I know I can place that elsewhere.

I'm talking about the money I have been investing and growing for the last 16 years. THAT's the money, now locked up in TSP, that I cannot move out of TSP unless I seperate from my job.

Which may not be a bad alternative. Quit, move the TSP, then get rehired. Risky, and not easy to do, but then again, perhaps I can find a sympathic manager somewhere....

 

[James48843]

well, at least he's honest in saying that their is no legislation.

Perhaps when the Thrift Board wants to submit legislative changes to allow for the "L" funds rather than the "G' fund as being the default fund (Which I personally support), we'll attempt to tack on in conference a requirement that all trades be free and unlimited, and we'll make that a contingent item and change in law.

 

[nnuut]

Received this response from one of my Senators today.






Dear Mr. Chesnut:

Thank you for contacting me regarding the recent Federal Retirement Thrift Investment Board decision on inter-fund transfers with in Thrift Savings Plans. I appreciate your comments and am glad to have the opportunity to respond.

As you know, the Thrift Savings Plan is a retirement savings vehicle for civilians who are, or previously were, employed by the United States Government and for members of the uniformed services. The Thrift Savings Plan was designed to resemble a 401(k) with a limited number of low-fee savings options. The Federal Retirement Thrift Investment Board is the independent Government agency responsible for managing the Thrift Savings Plan. I understand your frustration regarding the board's decision to impose new restrictions on inter-fund transfers. Currently, there is no legislation regarding this specific issue. Should such legislation come before me in the Senate, I will be sure to keep your concerns in mind.

Thank you again for contacting me. Please visit my webpage at http://isakson.senate.gov for more information on the issues important to you and to sign up for my e-newsletter.




Sincerely,
Johnny Isakson
United States Senator

For future correspondence with my office, please visit my web site at
http://isakson.senate.gov/contact.cfm

 

[FUTURESTRADER]

I never thought of this. Alot of us who do trade often times do put all our money in one fund so it isn't a big deal to us. Now to force everybody to have to do that if they want to make an ift isn't right either. Or is this off track? I have only heard if you want to transfer from S to G that is one for the month. I haven't heard if you want to transfer from C/S/I to F/G that it counts as one.

I'm speculating that one DAY'S worth of transfers will be considered 1 transfer. I.e., 50S, 50I to 25G, 25F, 25S, 25I on the same day would be considered 1 transfer. Unlike a 'trade' where you would be charged for selling 50S (1 comission), 50I (1 comission), and buying 25G, (1 comission), 25F (1 comission) 25S, (1 comission), 25I (1 comission). 6 comissions ttl.

 

[James48843]

Yeah, I'm confused about that.

They seem to imply if you've made your 2 moves in a month, and are in the market, you can move to the G fund w/o penalty.

The problem with that theory is that if you bail out because the market is going down, you are locked into G until the next month. Should the market go down 15% in one month (which can happen), and then you bail, on say, the third of the month, you are prevented from catching any of the rebound until the next month.

Provided that they are talking calendar month. They haven't said yet whether they intend calendar month, or 30-day period.

It almost assures that ANYONE who trades will locked with a much bigger loss, than had they not traded at all. The only way you can move in a down market is to the sidelines, but cannot come back.

 

[sugarandspice]

December coming up to the half way point.....No one got the letter yet? Tom should give a prize for 1st letter posted. I think after the uproar this is causing TSP may be rewording it to cover their a$$.

 

[Wasaki]

#1,274 Dec 11, 2007, Frank Allds, Wisconsin
Your new plan would force tsp shareholders to buy in all at once instead of averaging into a particular fund. This is dangerous and unfair.

I never thought of this. Alot of us who do trade often times do put all our money in one fund so it isn't a big deal to us. Now to force everybody to have to do that if they want to make an ift isn't right either. Or is this off track? I have only heard if you want to transfer from S to G that is one for the month. I haven't heard if you want to transfer from C/S/I to F/G that it counts as one.

 

[weatherweenie]

I just reread the faq on the tsp.gov site and saw something I hadn't before ...

The TSP is going to count a move to the G fund as a part of your 2 move limit. So, within a month, if I were to move from the G to the S and then back to the G ... that's my two moves for the month. Or, I can move from the G to the S and then to the I, and that's my two moves (but I can still move to the G fund if I get nervous).

Yeah, I'm confused about that.

They seem to imply if you've made your 2 moves in a month, and are in the market, you can move to the G fund w/o penalty.

 

[DrFaustus]

I just reread the faq on the tsp.gov site and saw something I hadn't before ...

The TSP is going to count a move to the G fund as a part of your 2 move limit. So, within a month, if I were to move from the G to the S and then back to the G ... that's my two moves for the month. Or, I can move from the G to the S and then to the I, and that's my two moves (but I can still move to the G fund if I get nervous).

What a rip-off. That's an even more serious limitation than what they were allowing before daily valuation.

 

[Spaf]

James,

You can do this manually, put a minimal amount in TSP and the rest with a internet broker.
However, you need to anlyize your bottom line on which aproach would serve you best

Yes, Spaf,
You can do that- you're retired.

I'm not.

I can't move my money to an outside broker, unless I quit my job. I'm not quite ready to do that.

 

[James48843]

Sun Tzu, modern times:

1. Never negotiate with yourself.

2. Take the high ground, make the enemy come to you. When he reaches you, you will be refreshed, and he will be exausted from the long march.