I think my last post will help you understand what happens. But, no matter
what the Market does on the day you make a <1%IFT, the transaction
will go through as requested. You will show on the next day; 94-0-2-2-2
You would have bought more shares at a cheaper price by taking your
dollars out of the (G) Fund and buying enough risk fund shares to meet
the 2% level.
Don't think at the end of the day ! Think of what you currently show on
the TSP website and what you want for tomorrow. Yes, reality is that
if you leave it alone, you'll have those .99%'s. But not if you do a the
<1%IFT. The Fund Managers will take your ending balance and redistribute
your account to refect the percentages you wished to have.
If you've used all your normal IFT's for the month and you had 1.01% to
start the day with in any given fund, you can do a <1%IFT and Jack Up
the percentage to 2%. The percentage at the end of the day does not
affect your ability to do a <1%IFT. When the Fund Managers adjust your
balance, they only care about the 1.01% being able to go to 2%. If the
percentages you've stated today are 1.01% and you do a <1%IFT, your
percentages will show 2% in that fund come tomorrow, I promise !
Your ability to do a <1%IFT today is based on the percentages you currently
show on the TSP Website. It is not based on what the market does in the future
or at closing.
It looks like that, but everything you do before noon is effected by the
closing share prices. Your forcing the Fund Managers to give you a IFT
no matter what the outcome for the day.
Yes, the IFT is locked in before the close. But the days outcome will
determine if you bought shares cheaper (down) or at a higher price (up).
If you do a <1%IFT, I invite you to print your current balance page and
tomorrow morning, print the new page. Do a comparison and see what
happens to your share and dollar amounts. Glad I could help !
REMINDER:
By doing a <1%IFT on April 1st, 2009 - It will count towards your 2 per
month limit. A decision needs to be made. Leave it be until your ready
to go in at higher levels or bail out by March 31, 2009 and wait on the
sidelines. DON'T WASTE YOUR MORE IMPORTANT NORMAL IFT'S !
As long as you make an IFT before noon eastern time the account percentages will be adusted to your account at the end of that trading day. If you make an IFT after noon eastern time the percentages take effect the next day, i.e. IFT made at 1:00pm Monday the percentages change end of trading on Tuesday.
At the end of the day your account total is adjusted by the number of shares times the share price. Example 6072.1693 shares in the G fund times $12.7515 price per share at the end of the day equals $77,429.27.
If you did not make an IFT for the day your number of shares will stay the same but your percetages will have to adjust to equal the total.
If you did make an IFT for the day then the shares will adjust up or down to equal the total.
May the force be with us.
That's a great sample and a big help Nasa, Thanks !
Note: This document opens with Microsoft Excel and can be
found within the Microsoft Office Suite. If you don't have the
Office Program, you can download a FREE version called Excel
Viewer from the Microsoft Web Site. The drawback to the free
viewer is; "it only lets you view the document and not edit it with
your specific dates and numbers".
By the way, I'm sure I'm not alone when I say; "we'd love to hear from
you, should you decide to do a <1%IFT" That goes for all the membership.
There's no such thing as a stupid question and the answers may help
others who struggle with this concept. So please feel free to stop by
at any time. Even if its just for a "Drive-By Hello"
I think I understand how it works, but how do you actualy make the IFT. Do you make an IFT but leave the percentages as they are, forcing the system to recalculate them. (isn't that considered an IFT even though you didn't change anything??) or are you actualy injecting money into the TSP by changing your payrole allotment.
Its not clear how you actualy doing the mechanics of it.
Thanks
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