I thought this was an interesting comment at the end of the article...
""Can you show us on paper how ONLY being able to move your money 2 times a month is costing you performance? "-
Answer: Absolutely. I would be happy to. Please come sit down with me for an hour, and I will show you my excel spreadsheets from 20+ years of being a TSP participant, and how 2 moves per month limits my ability to gain when the markets are moving.
Jamesdeal said: "Controlling your own destiny" in a mutual fund COSTS money to the mutual fund. "
Answer: The TSP is NOT a mutual fund. You need to go learn about the fundamental way the TSP's execution cycle works. There is three-day cycle where trades are executed and paid, and Blackrock (and it's predecessory) maintains a three-day rolling slush fund. The traders have a four-hour period in which to execute the needs of the day- the TSP cutoff time is noon, and the market does not close till 4 pm. Blackrock's traders are/were very good about using that four hour period to churn the slush fund, and earn MORE than the actual market over any given period of time. As a result, the MORE trading that took -place, the LOWER the costs were overall for TSP, because Blackrock was able to earn money in that period. Go look at the "expense per share" BEFORE and AFTER the trading limits were imposed, and you will see that costs went UP, not DOWN, when the limits were put in place. "
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