Thread: Allocations / Interfund Transfers

Rod wrote:

Everytime we make an allocation, let's say- 40%C 40%S 20%I, does that mean the Interfund Transfer must also reflect the same???

I just went from 100% S to 100% G. I also made an Interfund Transfer reflecting the same.

Did I do this right??? Do you always want the Interfund Transfer to match the allocation?

I think I cover that here. If not, let me know... http://www.tsptalk.com/faq.html#5.

Thanks,
Tom

Yousort of answered it. But let me ask you this- Does your allocations ALWAYS match your interfund transfers?

Thanx!

No. But to clarify, both are allocations. One is the contribution allocation (new deposits), the other is realigning your entire balance to a new allocation.

I have kept my contribution allocation at 50% C, 50% S for quite some time, but since I make transfers so often it hardly matters to me. If I decided to keep my balancein a particularallocation (interefund transfer of my entire balance) of 100% S, after a pay period or two where 50% of my new contributions went to C, I may make another interfund transfer to 100% S just to get my entire balance back into S. If I planned to stay 100% S for a significant period of time, I may go in and change my contribution to 100% S. I just haven't done that in a long time.

I hope that mud clears things up a bit .
Tom

Thanx! Allow me to sum your clarification so I understand... so when you do your "daily allocation", those percentages do not necessarily reflect an Interfund Transfer, but rather an allocation, correct?

This is where I was confused- let's say that I follow your "daily allocations", that does NOT mean I apply those percentages to the interfund transfer as well, correct?

So, my allocation may be 40%C, 40%S, and 20%I. BUT, I may currently haveALL myholdings in S if I choose to do so.

Bottom line- Just because your "daily allocation" recommendation may be 100%S, does not mean thatI should have allmy holdings in S,correct???

Am I tracking??? Thank you for your patience with me!

Rod wrote:

Thanx! Allow me to sum your clarification so I understand... so when you do your "daily allocation", those percentages do not necessarily reflect an Interfund Transfer, but rather an allocation, correct?

This is where I was confused- let's say that I follow your "daily allocations", that does NOT mean I apply those percentages to the interfund transfer as well, correct?

So, my allocation may be 40%C, 40%S, and 20%I. BUT, I may currently haveALL myholdings in S if I choose to do so.

Bottom line- Just because your "daily allocation" recommendation may be 100%S, does not mean thatI should have allmy holdings in S,correct???

Am I tracking??? Thank you for your patience with me!

Rod -
Actually, you have it backwards. When I make a transfer ("daily allocations" as you call it) that is an interfund transfer to move your entire balance to the new allocation.

So if your account balance is currently $100,000, and you choose to follow me to a 30% G, 35% C and 35% S allocation, your account would be allocated as follows:

G fund = $30,000
C fund = $35,000
S fund = $35,000

If you have your contribution allocation set to 100% G, then after your next pay day (assuming no move in the market and your contributions are$400 a pay period) your new balances would be :

G fund = $30,400
C fund = $35,000
S fund = $35,000

A week later you follow my next transferto a new allocation of 100% S, your new account allocation would be:

S fund = $100,400

Does that make more sense?
Tom

Yes Tom, that makes perfect sense now. Once again, thank you for your patience in explaining that to me. I really appreciate your time.

Before the market opened today, I moved everything from Sinto G, with my allocation set at 100% Gin preparation for 30 June. I'm going to hunker down for awhile until the "skies" clear a little. Does that sound like a smart move on my behalf?

God Bless

Man, I must have been having a blonde moment there. Common sense dictates that the contribution allocation is only affective on paydays.

THAT should have told me that your "daily allocation" actually refers to interfund transfers.

I'll get it together yet!:P

Thanx!

Rod wrote:

Before the market opened today, I moved everything from Sinto G, with my allocation set at 100% Gin preparation for 30 June. I'm going to hunker down for awhile until the "skies" clear a little. Does that sound like a smart move on my behalf?

Well, it's not what I'm doing so maybe it is a smart move .

I'm trying to keep at least 60% in stocks while my indicators are telling thelonger and intermediate term look bullish. My short term indicators are still a bit fuzzy.

I just have a gut feeling that the market will be pretty shaky next week. That's why I'm staying away from stocks until at least 5 July.

But one never really knows these things. We'll just have to see what happens.

But at this point, I'd rather be safe than sorry since I just built my holdings back up with those couple S Fund "rallies".

God Bless

Hi, new to this group, glad i found it, is there a limit to the number of interfund transfers you can do to your account each month??

No, you can do as many as you like.