Thread: Can non "Letter" TSP'ers still make unlimited moves?

Good question. If those that did not receive the letter make more than 2 IFT's, will they then be locked out? I bet we get that answer soon as someone will go past 2 IFT's and then we'll see.

Originally Posted by frokker

Good question. If those that did not receive the letter make more than 2 IFT's, will they then be locked out? I bet we get that answer soon as someone will go past 2 IFT's and then we'll see.

My thoughts are no... because there is no 2 IFT Rule in effect aside from the 3000 who were warned earlier.

It appears from the interim regulation that they have to inform you first that you are an "excessive trader" (their terms not mine), then if you continue such activity they can regulate you to snail mail. It doesn't say what they think is excessive but from the info in the threads, it seems to be more than 2 a month.

Sorry can't copy from a pdf; go to the paragraph starting at the bottom of the second to last column of the first page through the last column.

http://www.frtib.gov/pdf/FOIA/TSP-Regs_IFT-Dec2007.pdf

Per the TSP website:

Frequent traders are participants who have traded in the I Fund eight or more times in the prior 60 days

http://www.tsp.gov/faq/faq14.html

It appears that they are making the rules as they go folks? What a system, What a system!

Originally Posted by Asylum

My thoughts are no... because there is no 2 IFT Rule in effect aside from the 3000 who were warned earlier.

Supposingly we have to be warned first so we should be free until May when they claim everyone will be restricted to 2-IFT

Originally Posted by Paladin

Again, more conflicting information from the TSP. The letters from TSP clearly stated that they would be contacting anyone who made more than 3 IFTs in October, November AND December 2007

I made several IFTs in Oct, the last being on Oct 30 2007, then my next IFT was Feb 28 2008. I still recieved the 1st warning letter. They have no logic...

Well I guess my letter isn't a warning letter. It's dated Feb 2008 and isn't addressed to me specifically.

paragraph 3

"The Board has approved a policy that would limit participants to two interfund transfrers per month with unlimited subsequent tranfers to the G fund... Ect ect ect...

I made multiple transfers in march, so I guess I'll be waiting for my certified letter?

I found out this week that only the people in a Feb. sweep of the 3000 abusers took place , those who went over only in Feb. have been shut off electronically...have to do it by mail now.... and there must have been people who did over two trades in March like yourself...they did not do a sweep of March..so now they tell me it's not worth it to do a sweep...so for all in tense and purposes... anyone other than the 549 brave people who traded anyways in Feb. can still trade unlimited daily trades...but the official rule change should kick in on May 1st........ don't think anyone else knows this .....
Mike in NH Proud to be two of the 549 ( my wife and I )

Another thing I was thinking about , well actually my retired buddy and me ... what is the definition of a trade ??? Is it one's daily trades into all varying markets ? with your own personal percentage choices into each market ???? or is it an individual trade into each market ??? I assume it's the one days trading venture into whereever you want to put the money .....

NOte: IF you choose to make a trade on your first or second day of trading for the month into the G Fund..... that is counted as a trade for the month......
for instance..... Trade one...you are all in C Fund... you trade into G Fund that is one trade for the month Day two.... You trade out of G fund into I Fund ..that is now your Second trade for the month..... you now have no where to go but dump it back into the G Fund for your Free escape trade back into the G Fund which is free and then you are done for the month.........
What's going to be extremely interesting is since all the trading wil l be effectively shut down... the trading costs should drastically come down Right guys ??? We shall see..... and we shall see what the rebalancing of the L Funds really cost now ......I think on Wednesday of this week we watched the Lehman Brothers Fund (AGG ) end for the day in the positive..but next day the F Fund was minus 3 pennies.... I asked them about that and they daid it must have been the Fund Managers costs of trading that kicked in and they have no idea when this happens each month.... I think now that the TSP Board has opened up there shades more and more people are going to be looking at their way and costs of truly managing our monies....

MIke Egan in NH ( 548 & 549 respectively )