Thread: <1%IFT Option

Originally Posted by squalebear

I couldn't agree more. Nicely put, Thank Kevin !

One last point, there are members so close to retirement OR who are
actually in retirement who've opted to utilize this method to enhance
there accounts, without exposing themselves to high risk. Those who
utilize this method for those purposes may have goals to do a <1%IFT
as their only strategy and thus, start the month off at <1%IFT levels.
Everyones circumstances and goals are different, but one MUST know
that ANY IFT counts towards the 2 per month limit. Even a <1%IFT.

This additional commentary came out of a conversation with a fellow
staff member WHO STILL thought his first move back to the (G) did
not count towards the 2 per month limit. IT DOES. If your in a Fund
and your first move for the month is to move money back into the
(G) Fund from that Fund, IT COUNTS ! Public Service Announcements
should come from the FRTIB, but we all know thats not happening !

I'm retired but can't afford high risk. I'll give it another try. I like your idea of waiting for two down days before pumping the percentages up.

Originally Posted by Handballer

I'm retired but can't afford high risk. I'll give it another try. I like your idea of waiting for two down days before pumping the percentages up.

HB, That 2 day wait goes both ways. By waiting more than 1 day in
either direction, its a benefit. I like waiting 1 extra day on the upside.
That extra day just might put me over the whole percentage level I
started with. (2%--->2.01%). On the second day (if conditions are
favorable) I can do a Boost (2.01%--->3.0%) and adjust my goals
from there. It's still guess work, but isn't it always !

Originally Posted by squalebear

Thanks Nasa for the Hard Work !
From your post (as with Lady, I hope I got it right):

I can't help but think that given enough time, when share prices ultimately
reached their original January Price, the Buy & Hold (Scenario#2) would be
left in the dust. Further, the "break even" point in dollars would come that
much quicker because of the accumulation of more shares.

Again it has to be mentioned that even using the <1% option increases RISK over staying in the G fund. But depending on how thick skinned you are it can also have it's rewards.
I will add some more information to my spreadsheet that will show a daily profit/loss for all the scenarios and then post the spreadsheet. It may help.
SB, Using the scenario #1 and #2 above you are correct. In a post below I mentioned how the scenario #1 improved by $3,370.89 (do to the increase of shares) the first three days in April. Scenario #2 over the first three days of April increased by about $800.00.
I have to mention that if the first three days of April had been negative then scenario #1 would have lost more money compared to scenario #2 because of the higher fund percentages.

Originally Posted by nasa1974

SB, Using the scenario #1 and #2 above you are correct. In a post below I mentioned how the scenario #1 improved by $3,370.89 (do to the increase of shares) the first three days in April. Scenario #2 over the first three days of April increased by about $800.00.
I have to mention that if the first three days of April had been negative then scenario #1 would have lost more money compared to scenario #2 because of the higher fund percentages.

Well Done Nasa, your insight is of great help to me. I look
forward to seeing your XL spreadsheet too. Bless you !

A question:

Will the use of the '<1% IFT' technique count as one of the IFT trades toward the limit.

That is, let us speculate that I have two IFT trades remaining but do not want to make a major allocation change. Namely, I want to keep my powder dry and move 3% into equities on a specific day or range of days.

Can I use the '<1% IFT' technique for a number of transactions while keeping the big cahuna IFT transactions available?

Originally Posted by Boghie

A question:

Will the use of the '<1% IFT' technique count as one of the IFT trades toward the limit.

That is, let us speculate that I have two IFT trades remaining but do not want to make a major allocation change. Namely, I want to keep my powder dry and move 3% into equities on a specific day or range of days.

Can I use the '<1% IFT' technique for a number of transactions while keeping the big cahuna IFT transactions available?

The <1% option counts as an IFT. If you had 2 IFT's for the month and did a <1% move that would count as one of your FRTIB sanctioned IFT's. Then you would be left with only one IFT for the month. For a better explaination on the IFT and the <1% option go to the last page in this account and read the first couple of posts.
Any more questions do not hesitate to ask.

NASA,

Uuuuggggghhhhhhhh...

The TSP governors remind me of the IRS (or, even worse the California tax boards). You can't get anything around them.

Would have been a nice enhancement to the '<1%' technique though.

Thanks for saving me from a major mistake. Imagine blowing an IFT transaction (one of two) on a minimal allocation change - especially in this market.

Originally Posted by nasa1974

The <1% option counts as an IFT. If you had 2 IFT's for the month and did a <1% move that would count as one of your FRTIB sanctioned IFT's. Then you would be left with only one IFT for the month.

X2. I had a fit of brain spaz struggling with indecision a few days ago right at 11:50 am. I thought about a larger move, then thought better of it and absently mindedly did a <1% rebalance just for the heck of it. About 2 hours later I realized we were in a new month and there went my first IFT... Boy did I feel dumb. Still do.

Remember that 2 moves, in ANY direction, uses up your IFTs for the month. After the two moves, you have unlimited moves to G as well as <1% rebalancing moves.

Hey Everyone,
I had a bunch of free time right around 4-1 & 4-2, and I kept looking at different; posts, links, thoughts, theories, etc. Then I was getting kind of "geeky" and I jumped as far off the Lilly Pad as I could. It was early in the morning when I geeked and I made the first move at around 9:00 am. I kept reviewing different; posts, links, thoughts, theories, etc. and I decided that maybe this guy's or that girl's idea was better than mine, so I changed it. Through previous experience I had found out that whatever IFT setup that you have in there at noon is the one that is recorded. Well after changing that once, twice, three, four times, before noon, it seemed to shut me down for commiting to many IFT changes. The TSP system just seemed to wipe clean everything that I had done. The next day, I came in and looked at my IFT funds and I was 100% G fund. I took that thought to mean my multiple changes were deleted and I was now free and clear (good to go) with 2 IFT's for the month of April. I was able to make a IFT change, right then, and right now I'm wondering,
"Do I have 1 IFT left for April (100% G)" or 2
"my other regularly allotted IFT of the 2 IFT's per month and the default (100% G)",
Is it PARTY TIME or
time to crash at SATAN's crib again,
I tired of ringing HELL'S BELLS for weeks at a time!
I sure hope that it's the later and not the former. If anyone has any answers, input or (possible questions) please respond and I'll do my best.
Thanx

Ok, so a <1%IFT used up one of your Monthly IFT's. Look at the positive
side. You put little at risk and you might experience a bounce off of
todays losses. Further you have another full IFT to find a better entry point.
Once you feel confident about putting larger percentages in, you
still have that option. Just remember, if you plan on eventually lowering
your risk to <1%IFT Levels, your next move will be crucial. If I was in that
position, when I go in, I normally wouldn't give the (F) Fund the time of
day. But since this would be my last move, I would consider putting in at
least 1% in the (F) to keep the fund in play for my future <1%IFT Levels.

Good Luck !

p.s. I've written on several posts that ANY move counts towards the monthly
limits imposed by the FRTIB. Everyone interested in this method of
moving money at <1% Levels would benefit greatly by reading the
previous posts within this thread.

Originally Posted by dannyboy

Is it PARTY TIME or time to crash at
SATAN's crib again

Please update us when you find out, but Satan's Crib would be my guess