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Thread: Question about Interfund Transfer and BUY/SELL/HOLD strategies

  1. #1

    Default Question about Interfund Transfer and BUY/SELL/HOLD strategies

    I first wanted to thank everyone who is part of this site. Itís a great resource and I appreciate the help. Iíve been investing into the TSP for just over 2 years now. Until a few months ago, Iíve played it safe by contributing to the L2040 and G funds. Over the past few months Iíve been monitoring the site to see what the latest investment trends are each week. I have a question (and I hope itís not a dumb one). I want to preface this by stating Iím aware that the site and itís members are not responsible when people take their recommendations on investing. Here is an example and maybe someone can help me understand this better:

    The latest trend has been investing 100% into the S-Fund and my question is in regard to the Sentiment Survey results chart. As many of you have seen, it will show you what fund you should buy/sell/hold any given week. For arguments sake, lets say my TSP looked like this:


    S-Fund Balance $1,000
    - Allocation-> 100%

    G-Fund Balance $2,000
    - Allocation -> 0%

    When the survey suggests ďsellingĒ a certain fund during a certain week, does it mean you should do an interfund transfer? Are they saying I should move my entire S-Fund balance into my G-Fund (or ANY other fund for that matter)?

    I appreciate any input anyone has regarding this as Iím still generally new to the TSP. Just like everyone else, I want to get the most out of it and want to make sure Iím doing things correctly early in the game.

    Thanks,

    Steve


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  3. #2

    Join Date
    Apr 2008
    Location
    Cleveland, Ohio
    Posts
    9,955

    Default Re: Question about Interfund Transfer and BUY/SELL/HOLD strategies

    Quote Originally Posted by sbates View Post
    I first wanted to thank everyone who is part of this site. It’s a great resource and I appreciate the help. I’ve been investing into the TSP for just over 2 years now. Until a few months ago, I’ve played it safe by contributing to the L2040 and G funds. Over the past few months I’ve been monitoring the site to see what the latest investment trends are each week. I have a question (and I hope it’s not a dumb one). I want to preface this by stating I’m aware that the site and it’s members are not responsible when people take their recommendations on investing. Here is an example and maybe someone can help me understand this better:

    The latest trend has been investing 100% into the S-Fund and my question is in regard to the Sentiment Survey results chart. As many of you have seen, it will show you what fund you should buy/sell/hold any given week. For arguments sake, lets say my TSP looked like this:


    S-Fund Balance $1,000
    - Allocation-> 100%

    G-Fund Balance $2,000
    - Allocation -> 0%

    When the survey suggests “selling” a certain fund during a certain week, does it mean you should do an interfund transfer? Are they saying I should move my entire S-Fund balance into my G-Fund (or ANY other fund for that matter)?

    I appreciate any input anyone has regarding this as I’m still generally new to the TSP. Just like everyone else, I want to get the most out of it and want to make sure I’m doing things correctly early in the game.

    Thanks,

    Steve
    Steve, no question is dumb.
    What you want to establish for your account is "How much RISK you are willing to take". Using your example your RISK factor is low by keeping $2000 in the G fund. That isn't a bad thing. Members move different percentages in and out of funds to reduce or vary their RISK. Obviously 1% on $3000 is more than on $1000. But you also stand to make more or loose more depending how much you have in the market.
    OK with that said if the survey says SELL then if you want to move money from the S fund to the G fund it will cost you an IFT. Remember you only have 2 IFT's per month that allow you to move between any fund. Once you have used your 2 IFT's you can only move into the G fund. If you decide to follow the SELL signal it is up to you to decide how much you want to move to reduce your RISK. Not matter how much you move to the G fund it will count as an IFT. Did I answer your question? Good luck.
    May the force be with us.

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  5. #3

    Join Date
    Apr 2005
    Posts
    13,813
    Blog Entries
    9

    Default Re: Question about Interfund Transfer and BUY/SELL/HOLD strategies

    The other thing that MUST be added is this-

    NONE OF US are professional investment advisors.

    NONE OF US even play one on TV.

    What you decide to do with your own account money is TOTALLY UP TO YOU.

    I know we say that a lot- but we HAVE had times in the distant past, where someone has said "Hey, you told me to buy, and then the market went down, and I lost money."

    Yes, you will buy. And there WILL BE DAYS when you will lose money, if you are in any fund other than the G fund.

    The goal here is NOT to listen to the other folks to tell you when to buy or sell.

    The goal here is for YOU to educate YOURSELF- to the point where you can learn to become comfortable with your own level of risk, and make the moves you think will best represent your own style and desires.

    Good luck to you- and may the force (of compound investment earnings) be with you!

    When the survey suggests ďsellingĒ a certain fund during a certain week, does it mean you should do an interfund transfer?
    Yes, that would mean an interfund transfer of the current balance, or a portion thereof--and not necessarily a change to the allocation of new money going in.

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  7. #4

    Join Date
    Jun 2004
    Location
    Boiled Peanut, Georgia, USA
    Posts
    60,218

    Default Re: Question about Interfund Transfer and BUY/SELL/HOLD strategies

    Welcome to the MB sbates. The Sentiment Survey is only one of many indicators that should be taken into consideration before you make an IFT. Lots of information available here and it's up to you to decide what to do with your investments we here just give our opinions. Read Toms daily analysis he does a great job, read all the threads you can and you will notice big differences in Member's opinions.
    Best of luck with your investments my friend,
    Norman
    02/19/2020
    CRUDE Oil =
    $53.29 a Barrel, Daily Status +$1.24

  8.  
  9. #5

    Default Re: Question about Interfund Transfer and BUY/SELL/HOLD strategies

    Thanks for the response everyone. You guys are definitely making me see this much more clearly. I appreciate the help.

  10.  
  11. #6

    Join Date
    Jan 2010
    Location
    OKC area
    Posts
    211

    Default Re: Question about Interfund Transfer and BUY/SELL/HOLD strategies

    Excellent input from all the TSPTalk gang..... Also, recommend looking at RMI (Real Money Issues) forum ...... RMI has an encompassing chart called OCD that provides a summary of different systems on a day to day basis. Keep in mind, other forums also have a major inputs & timing systems from various angles. Also, there are several premium services found on the TSPTalk home page that can provide input for a small fee --- well worth the investment to establish a solid educational foundation base. Happy investing .... cheers
    Knowledge is very powerful for your future

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