Thread: Effective Date of IFT

GeorgiaGal wrote:

I made IFT prior to noon est - but the message did not say it would be effective by cob today, it said would ordinarily be effective within 2 business days - that could make a big difference!



I thought we were counting on being effective by cob as long as we made it prior to noon.

GAWGA

That is normal. The important thing is that you get the message that your request has been received and confirmed. If youdid not see that message then your request may have timed out, and it would need to be resubmitted. As long as your request is submitted before 12:00 est, most of the time it will be effective at COB for that day.

AFTER COBor BY COB? Sorry, but there is a difference.



Thanks

GAWGA

GeorgiaGal wrote:

AFTER COBor BY COB? Sorry, but there is a difference.



Thanks

GAWGA

How about "AT" COB that day. :^

At COB you will receive the gain or loss for the share of the fund that you are in. And then either buy or sellat the newshare price for the fund that you made the IFT for, to beeffectivethe next day.

vectorman wrote:

At COB you will receive the gain or loss for the share of the fund that you are in. And then either buy or sellat the newshare price for the fund that you made the IFT for, to beeffectivethe next day.

At cob is pretty important for it marks the last day you will be from your previous allocation. For trackers like me, this is pretty much what we are looking for.

I just want to make sure that I understand what you said with an example...

Day 1: Fund 1 100 shares @ $10.00 per share. Fund 2 0 shares @ $20.00 per share.

I want to transfer them all into Fund 2 effective Day 2. So I make the IFT on TSP website before 12 EST.

Day 2: Fund 1 0 shares @ $10.10 per share. Fund 2 40.40 shares @ $25.00 per share.

Is this math right?

ChemEng wrote:

I just want to make sure that I understand what you said with an example...

Day 1: Fund 1 100 shares @ $10.00 per share. Fund 2 0 shares @ $20.00 per share.

I want to transfer them all into Fund 2 effective Day 2. So I make the IFT on TSP website before 12 EST.

Day 2: Fund 1 0 shares @ $10.10 per share. Fund 2 40.40 shares @ $25.00 per share.

Is this math right?

Sorry, everbody knows i'm a little slow. Hope you wouldn't mind if I changed what you are trying to say into something I am more familiar with.

7/7/05 100g, 7/8/05 100s, 7/9/05 100i. All IFT was made before 1200 est of the date mentioned.

At 7/8/05 you will get the closing day price for g,f,c,s,i. This will be the last day you will be at 100g.

At 7/9/05 you will get the closing day price for g,f,c,s,i. This will be the last day you will be at 100s.

Since 7/9/05 is a Friday, you have to wait until 7/12/05 (Monday) to getto get the closing price for your 100i. I usually put the word "current" and daily fund price will be placed in this column.

Is that clear as mud? It took me 6 months to learn this. I told you, I am a little slow...

That part I got. The question I have is what is the price that you "cash out" your shares at? Is it the price listed at the COB for that fund? or is it the price from the previous day for that fund?

If I make an IFT on Wednesday before noon from G into S for instance, the price I buy the S shares is the price listed on the website for that day. But what is the price that I sell my shares of G fund? Is it the price listed for Wednesday or the price for the previous day?

ChemEng wrote:

...

If I make an IFT on Wednesday before noon ...

If you do as stated, later Wednesday evening TSP.gov sends you a confirmaion of that fact. On the left side of the Effect of the Tansfer it tells you the Share Price as of that date - your hypothetical Wednesday. Those dollars are the ones you paid &/or got paid when the Market Truly closed at 4:00 EDT.

Then, if your computer develops a Spreadsheet hunger, as mine has (three times in the past 6 months), you are able to look back at your printouts & see just what it was you did pay for that Fund when you jumped in..........

The basis for an IFT then is the "movement" between 2 funds then? I can see how you could get inidea of the movement of one fund, but how do you get the relative information of one fund to another? That piece of information doesnt seem too intuitive...

So you make anIFT change in one ofthe following situations:

[align=left]1. Current fund will drop, transfer fund remain same.[/align]
[align=left]2. Current fund will drop, transfer fund will increase.[/align]
[align=left]3. Current fund will stay the same, transfer fund will increase.[/align]
[align=left]4. Current fund will stay the same, transfer fund will stay the same.[/align]
Only 3 of the 4 will increase your yield. The times you wouldnt make the change would be:

1. Current fund will increase, transfer fund decrease.

2. Current fund will increase, transfer fund remains the same.

3. Current fund will stay the same, transfer fund will decrease.

There are magnitude issues that I can see that will complicate the issue as well.