Thread: 4/16/04 transfer effective 4/19/04

G-30%

F-0%

C-25%

S-25%

I-20%

Well, what a roulette hey? I totally missed the boat today. Made some adjustments this morning hoping forgood returns tomorrow, but we all know how that goes. Thanks for all the comments.

I remained 100% in stocks today and it was very pleasing to see the nice gains today, but everyone needs to remember it's only paper and not in your pocket and could be gone by tommarrow evening! so do some jumping, just not too high just yet . we still have a barrier wall to get over and until them o

GTO

Hey all you brave prospective retirees. Anyone who thrives on stress, the market has surebeen complying the last few days. I have been trying to post a question? It is fundamental info, but since I am in healthcare and not economics, I may have missed this(in school). I am currently allocated 60G, 20C, 15S and 5% I funds since last monday. When I added the 5% I and switched from 65% G to 60% G, I was shocked to realize that I had also repurchased my S and C funds at the then higher share price, losing shares and $. I wanted to get to keep the S and C funds I so smartly bought at a nice low price!

If I go hide in the G fund, do I gain shares (since I am converting from funds with a currently higher share price)or just get to keep my $ principal? There is no way to change IFTs without changing 100% of our allocations, right? I feel stuck right now because I am not sure which way to go to protect my principal versus missing a potential stock market rise. (I know I am not alone in this).

I know there are some very sophisticated strategic systems that many of you have posted and they help, but I just need stock market 101 right now regarding how this TSP plan works. Thanks and if my ignorance entertained you then I hope it has brightened your day.

Hello Highplains -

When I added the 5% I and switched from 65% G to 60% G, I was shocked to realize that I had also repurchased my S and C funds at the then higher share price, losing shares and $. I wanted to get to keep the S and C funds I so smartly bought at a nice low price!

In essence, you sold and bought at the same price. When you reallocate, your old allocation is basically paid at the last closing price, then rebought at that same price. What you originally paid is of no concern at that point.

If I go hide in the G fund, do I gain shares (since I am converting from funds with a currently higher share price) or just get to keep my $ principal?

You gained shares with the same balance. It would be like selling 2 shares of EBAY for $50 each and buying 4 shares Microsoft for $25 each. You have more shares but you still have $100.

There is no way to change IFTs without changing 100% of our allocations, right?

That isbasically true. But it's not really a concern. If you have 100% of your account in G, let's say 1100 sharesat 10.37 a share (Total $11,407), and you want to move 80% into the C fund. So you do an 80% C, 20% G transfer.You would now have $2,281.40 in the G fund and $9,125.60 in the C fund. The G fund shares are still $10.37.
I hope that answers you question.

I feel stuck right now because I am not sure which way to go to protect my principal versus missing a potential stock market rise. (I know I am not alone in this).

You and me both

Don't hesitate to ask questions. This site is for people who want to learn this stuff. And if I didn't answer your questions to your satisfaction, ask again until I do.

Tom

thank you for your help. I finally was able to view my participant statements on a non-encypted computer and it makes sense to me now with all the real numbers in front of me. I did notice a pattern. For the past three times I have sold my stocks and gone back to the G fund one day before a big fund price increase. Go figure.