What YOU can do to fight back - IFT limit

[James48843]

From the Ameritade Website:

+++++++++++++++++++++++++++++++++++++++++++++++++++++
Stocks: Internet

You pay only $9.99 per Internet equity trade – market or limit. See how we compare. Whether it's 100 shares or 10,000 shares, you still pay only $9.99 per Internet equity trade!

Internet Equities

TD AMERITRADE---1,000 shares----$9.99
Schwab-----------1,000 shares---$12.95
Fidelity------------1,000 shares---$19.95
E*Trade------------1,000 shares---$9.99

 

[Barney]

From the Ameritade Website:

+++++++++++++++++++++++++++++++++++++++++++++++++++++
Stocks: Internet

You pay only $9.99 per Internet equity trade – market or limit. See how we compare. Whether it's 100 shares or 10,000 shares, you still pay only $9.99 per Internet equity trade!

Would Sharebuilders $4 per trade fit in there?

 

[Show-me]

Scottrade $7 per trade.

 

[07Harley]

This is what I sent to my congressional reps.




Honorable ________ and staff,

I am a Federal employee, a disabled veteran, a conservative and I voted for you in the last election.

I have learned of the intention by the new Thrift Savings Plan Board to impose a restriction on Thrift Savings Plan(TSP) trading activity, specifically limiting participants to no more than two (2) transfers per month. This restriction if implemented would be in direct conflict with current Federal Regulations. Specifically FR 32208, June 1, 2005 paragraph 1601.32(b) “There is no limit on the number of contribution allocations or interfund transfer requests that may be made by a participant.”

I believe imposing any interfund transfer limits will have a serious, negative impact on my ability to re-allocate my funds and maximize my retirement account, which in turn will lower my quality of life in retirement.

As my elected representative in Washington, I sincerely request that your office take the appropriate actions necessary to preserve my rights and abilities to manage my personal retirement account, in accordance with the current existing Federal Regulations. “No limit on the number of interfund transfers”.

Thank You,
Sincerely,

 

[RAE]

I got an e-mail reply back today from one of the ETAC members that I had written to (first reply I've received). It is from Mr. Dale Goff, of NAPUS. I expressed my displeasure with the recent proposal to restrict IFT's and asked him to oppose it at the upcoming meeting between ETAC and FRTIB. His reply was brief, but encouraging:

I agree and at our meeting on the 19th I will bring forward your concerns and the many others that have emailed me.​

Dale Goff​

 

[airlift]

I would settle for that! Only if we can't get $6 dollar trades!.

Here is an idea:


Unlimited trades.


Fee of $10 per trade.


If it works for Ameritrade, etc, why is it so hard for TSP Board to simply issue a flat fee?

 

[Show-me]

I got a email and a phone call, but I know we need more to call the Employee Thrift Advisory Council. The are our advocates!!! Please call, email, or fax.

 

[Show-me]

FedSmith posted another proFRTIB article to which I wrote:

That is because 99% or 3,762,000 of participants are not managing their account actively. That leave only 1% or 38,000 that do. Not even close to the 3000 mentioned by the FRTIB or 0.079%.

The same 99% or 3,762,000 of participant do not know who the Employee Thrift Advisory Council is, what they do, or how to contact them. Do you? Wait, that number is probably closer to 99.9999%.

A extremely large number of the same 99% or 3,762,000 probably do not even look at their accounts and rebalance yearly as recommended by any financial adviser.

If those 99% or 3,762,000 want to sit on their butts doing nothing, let them, but do not hinder my ability to make investment choices.

 

[Frixxxx]

....
If those 99% or 3,762,000 want to sit on their butts doing nothing, let them, but do not hinder my ability to make investment choices.

I'm back...thanks for the contact lists and information Show-me. I agree 100%. I have twenty years left to build my account and move from the meek to the independently wealthy. If I wait for someone to do it for me, I may be at thirty years.

 

[Show-me]

www.tspshareholder.org

Quote form tsp.gov Q&A:

"After receiving input from the employee unions, organizations, and others, we plan to place limits on interfund transfers early in 2008. The process of establishing limits will include normal public rule-making under the Administrative Procedures Act. Proposed regulations will be published in the Federal Register and comments will be welcome."

Comments anyone? I have a list of people that may not want to hear them, but will have to listen to them.

I propose the December 17 we do a mass call, fax, and email to all Employee Thrift Advisory Council(ETAC) members. Light'em up two days before the meeting so that it is fresh in their minds that we want the FRTIB to not limit us to two interfund transfers and talk about alternatives.

 

[Show-me]

Remember to tell all your coworkers about it too and tell them about www.tspshareholder.org. Spread the word!

Thank you!!!

 

[Show-me]

And if you have not call yet do not wait until the 17th. Call now and then we all call on December 17.

 

[cptkirk333]

I asked this several times - not in this forum - but still have not received a reply. Hard data is what I want. What is the cost of transactions, broken down, prior to the L funds and then after the L funds. If I'm not mistaken 2006 was when the L funds came into existence. The comments of the funds transactions being low in 2006 would probably be for a prior to 2006 time. So now all of a sudden a jump in cost for transactions - presuming say the time period of 1/2 of 2006 and 2007? Where is the data to pinpoint the cause in the jump? I want data TSP and of course none forth coming.

 

[yeskevin]

IMHO, comparing L funds to active trading is not really the same animal. The L fund expenses are institionalized, automated, and anticipated by Barclay’s ( I believe they are the fund managers). Likewise, I do not believe the funds are re-allocated on a daily basis, as is the potential for an IFT.

At the end of the day Barclays is a for profit firm. The Board has worked hard to both reduce fees and improve our platform over the years. Surely, The Board fears active trading is a threat to those fees. Having negotiated such low fees, I am sure the board does not want Barclays, et al to walk or renegotiate higher fees at the conclusion of the contract period. I personally believe The Board is attempting to act in our best interests. Likewise, they are the decision makers. This is not a democracy. And even if it was, the vast majority of TSP investors would choose low fees over active trading. We can fault them for being naive. However, as I am reminded each election, naive votes count as much as informed votes.

Barclays is not an Ameritrade. I am not sure an intuitional investment firm even has the automated platform to charge for trades, etc. Intuitional firms make their money from management fees, while Ameritrade’s bread and butter is trading fees. Two entirely separate business models. To develop such a platform, it would need to be paid exclusively by the small percentage of active traders. These costs would be in the $100’s per each trade, not $10. We must be flexible, and realize we must shoulder our own costs. Therefore, I propose another alternative for us to consider. Instead of charging for individual trades, TSP enrollees who wish to have the ability to make multiple trades must prepay a set fee each month or quarter. Realistically, this fee could be well over $100 a month. However, it overcomes the platform issue I have read is a concern. And the fees could come directly out of our pay checks, which also removes the hurdle of trying to automate the withdraw of funds from our 401k accounts to cover trade fees.

 

[RAE]

IMHO, comparing L funds to active trading is not really the same animal. The L fund expenses are institionalized, automated, and anticipated by Barclay’s ( I believe they are the fund managers). Likewise, I do not believe the funds are re-allocated on a daily basis, as is the potential for an IFT.

From www.tsp.gov:

"The L funds are rebalanced to their target allocations each business day"

 

[kaitlinsnana]

This is great news! Dale is on our side, and now we need to quickly bring the others around prior to the next meeting on 19 December. The ETAC has the power to stop this nonsense.

Where are the member addresses. Looks like you've unearthed a possible advocate. Good man.

Are the individual names and addresses listed on this site?

Gail

 

[ekatteng]

IF the TSP board implements the the rule of just once a month round trip (two inter-fund transfers per month), I may borrow $50,000 to the TSP and open an account at Charles Schwab or Fidelity or Ameri-Trade to be able to perform as many IFT's as need it to maximize opportunities from the EFA (iShares) moves.

If everyone does the same, you may imaging the lesson for the TSP Board.

We will be withdrawing almost 200 billions... I doubt they could effort it.

 

[Show-me]

Where are the member addresses. Looks like you've unearthed a possible advocate. Good man.

Are the individual names and addresses listed on this site?

Gail

Look at me signature and click on the link in it. It will take you to the list.

 

[weatherweenie]

I don't know if they'll do anything, but I emailed the National Weather Service Employee Organization(NWSEO), NWS union, in an effort to get them on board with this fight.

 

[Show-me]

Go to www.tspshareholder.com and sign up for the email list. Thank you for all that contributed and a very special thanks to James for all the hard work and time spent of making our voices heard.

One contact a day we all contact.

Todays email:
Our first ETAC member we'd like you to contact is:

Federally Employed Women
Sharon Roydes, Treasurer
1666 K Street, N.W. Suite 440
Washington, DC 20006

Phone: (202) 898-0994

Give her a call, and tell her you are opposed to limits on TSP trades. Tell her what a two trade limit would mean to you. Keep it short, but to the point. Then ASK her to vote no on the two-trade limit.

Please pick up the phone and make the call.

Each day, we will be featuring a different ETAC member. Our goal is to ensure they ALL hear our message- Just say no to TSP Trading limits.