Thread: TSP officials eye limits on trades

One solution that would work for me is to charge for trades, and then move the IFT deadline to the end of the trading day.

If they do start changing their policies, we could do a petition against it.

But if we can't do anything about it, then I might pull my TSP account and put it in Rydex or Direxion funds that pays 2X the I-fund and on top of that I will be able to short it too with a 2.5X return.

Originally Posted by CountryBoy

Here they go again.

http://www.washingtontimes.com/apps/...ON06/109040043

CountryBoy

Yet TSP themselves time the market each day when they rebalance the L-funds.

It would depend on the policy changes. If they allowed a couple of changes per week, then a nominal fee of a couple bucks per trade after that, then it wouldn't be so bad... Even if I ran up a bill of a couple hundred bucks a year, it would be insignificant vs the gains for the service.

However, I think they should have to demonstrate that the expense of setting up a system to track, account for, bill and audit the trades and fees would be justified (given the statisticaly few participants who do trade often). That compared to the trading costs incured by constantly rebalancing the various L funds.

The majority of Feds still just leave their money in the G fund...

On the one hand they want Feds to be more actively involved in managing their fund, on the other, they just don't want them to be too active.

And, how about the 10 million (of TSP money) they spent promoting the L funds to participants?

Might be time to organize a TSP Participant Citizen Investors Watchdog group to monitor the FRTIB!

Originally Posted by CountryBoy

Here they go again.

http://www.washingtontimes.com/apps/...ON06/109040043

CountryBoy

The article by our buddy, Causey, stirring the pot. He hates us

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If this is going to be a fee for service proposition, it would only be fair then to bill the L funders for constantly rebalancing their accounts (the cost of the trade, as well as the cost of the contracter who handles the management of the L funds.)

I am not opposed to a small transaction fee if these transactions do cost the Plan money. But I also agree with BeaverState that the L-funds are more active than anything we can ever do.

SkyPilot makes some excellent points as well.

I would imagine the L funds transactions are highly automated. I would also imagine frequent trades could be highly automated, if they're not already.

Originally Posted by tsptalk

I am not opposed to a small transaction fee if these transactions do cost the Plan money. But I also agree with BeaverState that the L-funds are more active than anything we can ever do.

I thought the "L" funds are rebalanced only once per month.

Am I mistaken?

Originally Posted by James48843

I thought the "L" funds are rebalanced only once per month.

Am I mistaken?

From Tsp.gov

The L Funds provide you with a convenient way to diversify your account among the G, F, C, S, and I Funds, using professionally determined investment mixes that are tailored to different time horizons. Your “time horizon” is the date (after you leave Federal service) that you think you will need the money in your TSP account. Because it is important for each L Fund to maintain its target investment mix, the TSP will automatically rebalance each L Fund daily. Then, each quarter, the investments in each L Fund will shift to a slightly more conservative mix. In addition, experts will review the investment mixes periodically to be sure they are still appropriate.