Lacy
03-19-2005, 02:03 PM
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Okay. Let me see if I'm still understanding. Ifa person hasat least $100,000 in TSP, is contributing the max,and hasat least 10 years to go, I'm assuming that is what you'd consider a substantial-enough balance that one wouldn't need to bother with switching contribution-allocations each time an interfund transfer is made. If that is correct then is it also true that, since your contributions are still being allocated to funds that are down (buying low) then, just because you shuffle your funds in order to preserve your balances, you're still benefitting from purchasing shares of poorly-performing funds(during contribution time) even though your "balances" have been reallocated....so, then, when the tables turn again and the poor-performers are flourishing, you have more shares to grow with, than you would've if you had changed your contrib-allocations.Also, hopefully, we'd time our interfund transfers correctly and be well-balanced again when the market changes direction.
Am I thinking on track?
Okay. Let me see if I'm still understanding. Ifa person hasat least $100,000 in TSP, is contributing the max,and hasat least 10 years to go, I'm assuming that is what you'd consider a substantial-enough balance that one wouldn't need to bother with switching contribution-allocations each time an interfund transfer is made. If that is correct then is it also true that, since your contributions are still being allocated to funds that are down (buying low) then, just because you shuffle your funds in order to preserve your balances, you're still benefitting from purchasing shares of poorly-performing funds(during contribution time) even though your "balances" have been reallocated....so, then, when the tables turn again and the poor-performers are flourishing, you have more shares to grow with, than you would've if you had changed your contrib-allocations.Also, hopefully, we'd time our interfund transfers correctly and be well-balanced again when the market changes direction.
Am I thinking on track?