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Thread: Less than 1 Percent Option (read only)

  1. Cool Re: <1%IFT Option

    Yes! You said there were no dumb questions
    Thanks

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  3. #26

    Join Date
    Apr 2008
    Location
    Cleveland, Ohio
    Posts
    9,797

    Default Re: <1%IFT Option

    Quote Originally Posted by Aule Mar View Post
    Yes! You said there were no dumb questions
    Thanks

    There are no dumb questions. Sometimes the answers do not make sense.

    You make a <1% IFT just like you would a normal IFT. As long as your pecentages are between .01 and .99 you can either round up or down your percentages. Remember when you make an IFT it has to be whole numbers and equal 100%. You will find a better explaination if you go to the last page and read the first couple of responses. We are all here to teach and learn. Keep asking questions.
    May the force be with us.

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  5. #27

    Thumbs up Re: <1%IFT Option

    Quote Originally Posted by Aule Mar View Post

    "how do you actualy make the <1%IFT"
    Just like any other IFT. By going to the TSP web
    site and changing your percentages.

    "Do you make an IFT but leave the percentages as they are"
    You can leave the percentages as they are, but remember,
    if your percentages show a number greater then OR less then
    a whole number you can increase the percentages up to the
    next whole number. ie... 1.01%--->2.00%,,,0.99%--->1.00%

    "isn't that considered an IFT even though you didn't change anything"
    Yes, every <1%IFT is considered a IFT, even if you keep the %'s
    the same. By keeping the percentages the same, your treating
    the account just like an L Fund and simply rebalancing your total
    account to reflect the same percentages for the next day. Shares
    will increase or decrease depending on the market going up or
    down on the day you do the <1%IFT.

    "are you actualy injecting money into the TSP by changing your payrole allotment"
    Your taking new money from your paycheck and purchasing shares at
    the closing price, on the day it actualy goes in.

    "Its not clear how you actualy doing the mechanics of it"
    As Nasa said in the previous post, check back and read the previous posts.
    If you can't find the answer you seek, my thread has alot of information
    "Squalebear's Account Talk" buried within it. But that will take alot of
    searching. A better suggestion would be to keep asking questions.
    Please do not make any decisions concerning your account by doing a <1%IFT until you have a firm understanding of how this affects your share amounts, dollar amounts and risk. This method was designed by me to beat the (G) Fund, in lieu of going to the (G)arage. But there's a good chance that you can still lose money while attempting this. Should you reach your goal on the very first day, it may be a better idea to flee this method and jump back into the (G) Fund before its too late.


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  7. #28

    Join Date
    Jan 2009
    Location
    Norman, OK
    Posts
    175

    Default Re: <1%IFT Option

    squalebear --

    Thanks to your help I did my first <1% IFT today! With the market looking like it will finish down pretty good today, I would possibly have bought some into C if I had any IFTs left. So, I did the <1% trick!

    Balances before the IFT:

    6.94% F
    5.68% C
    2.11% S
    2.06% I
    83.21% G

    Balances after:

    7% F
    6% C
    3% S
    3% I
    81% G

    Not a big deal, but it is interesting nonetheless...

    Steve

  8.  
  9. #29

    Exclamation Re: <1%IFT Option

    Quote Originally Posted by steveg View Post
    squalebear-- I did the <1%IFT trick!

    Balances before the IFT:

    6.94% F ----->7%
    5.68% C----->6%
    2.11% S----->3%
    2.06% I----->3%
    83.21%G---->81%

    Not a big deal, but it is interesting nonetheless...

    Steve
    The "trick" is still in the timing and not in the method. You say, "No Big Deal",
    but I beg to differ with you. You took 2.21% (maybe even more) out
    of the (G) Fund and bought shares with it at a cheaper price. Don't
    tell anyone but your not suppose to be able to do that !
    Good Luck !

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  11. #30

    Join Date
    Sep 2008
    Location
    West of Atlanta
    Posts
    2,578

    Default Re: <1%IFT Option

    <1% Guide <- Click Here!

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  13. #31

    Arrow Re: <1%IFT Option

    To Whom This May Concern,

    Welcome to April and the New Quarter.

    We all have 2 unrestricted IFT's from now until the end of the month
    and i couldn't help but think of all the possible strategies one might be
    using while in this most unpredictable market. But that my friends, is
    up to you.

    When it comes time to make the decision as to whether you want to
    Bail out of the Market, one might consider this little method of mine.
    If that time comes and you decide to use the <1%IFT method, I want
    you to consider the following;

    #1) Although you only need one Risk Fund to do a <1%IFT, if you start
    with only one, your stuck with only one until you utilize your Future
    Contribution Allocations to add new money from your paycheck back
    into a different fund.

    #2) I tend to utilize 3 (C,S,I) or 4 (F) of the Risk Funds for diversification
    purposes. Just as it's documented by the experts, a well balance portfolio
    will help ease the agony of a down day. But it also lowers possible gains
    on a up day. Should I feel stonger about Bonds I can reduce my stock
    holdings and possibly boost my Bond holdings. But I will never reduce my
    holdings below 1% unless I've given up on that fund and submit that fund
    to the (G)arage.

    #3) My first move might be considered extremely aggressive, but It's my
    Second Move which is most important to the <1%IFT Levels I may want
    before the month is through. This is evident in my March IFT's which can
    be seen on the AutoTracker. But for those who don't have access, here's
    the moves I made in March;

    1st = 0-0-0-0-100
    2nd= 50-10-5-10-25
    3rd = 92-4-2-1-1
    4th = 89-4-3-2-2
    5th = 93-4-1-1-1
    6th = 93-4-1-1-1 (rebalance)
    7th = 89-5-2-2-2
    8th = 100-0-0-0-0

    Please take note that my 2nd move, although above my <1%IFT Levels, it
    gave me the diversification I seek. This can be done at <1%IFT Levels as
    well, but the point is this----> Your second move MUST include what ever
    funds you want available for your eventual <1%IFT goals. On my 3rd move
    I officially announced that I reached my <1%IFT Levels and started my
    attempt to beat the (G) until I pulled the plug and bailed back to the (G)
    Fund on my 8th move.

    #4) There will always come a time when you will end up at a crossroad.
    The (G) Fund does NOT lose money. This method CAN lose money. There's
    no shame in accepting defeat at these levels. If the market hits the skids
    and it becomes highly unlikely that you'll beat the (G) Fund, then by all
    means, Jump Out before you suffer weeks of (G) Fund loses. March gave
    me +0.4951% over and above the (G) Fund returns for the same 9 trading
    day period,,,,OR,,,,10.68054 weeks of (G) Fund Returns. That gave me a
    whole month that I could sit in the (G) and still be ahead. My goals are
    not lofty. Even though I was playing with their money (casino reference)
    I try to always remember that "Pigs Get Slaughtered".

    #5) Last but not least, please remember that sometimes, the right move
    is NOT making any move at all. Look ahead at all the data thats coming
    out and STILL do your homework. You just might allow your percentages
    to go above a whole number and gain the ability to boost that fund up
    by nearly 0.99% in a few days. Sometimes the Market will not want you
    to do that by getting really ugly. But this is something I weigh out before
    making a move.

    #6) Making a <1%IFT on the same day as your Future Contributions are
    kicking in is still a mystery to me just yet. I haven't done one and don't
    know which takes priority over the other. So, I avoid doing so for now.

    MAY WE ALL SEE A GREAT AND PROFITABLE APRIL ! MARCH WASN'T ENOUGH !

  14.  
  15. #32

    Join Date
    Jul 2007
    Location
    Pacific Northwest
    Posts
    709

    Default Re: <1%IFT Option

    SB, as a junior Jedi I will try to help. Hope you don't mind.

    Medic let's make an assumption that you have made your 2 IFTs for the month on the 10th (any given month you wish) but you had the foresight to follow SB's example and your allocation COB on the 10th was 85G, 5C, 5S and 5I. Now on the 11th the market went up a little and at COB on the 11th your actual allocation at COB based on C/S/I going up is 84.5G, 5.2C/5.1S/5.2I (you have to look on the TSP website the morning on the 12th at your account balance to see the your account allocations on the 11th closing). The market went up so your overall allocation changed due to the change in dollar value of your shares in C/S/I and your .02% G increase.

    Now you have 3 choices. You can:

    1) Let it ride and do nothing (not wanting to risk more if the market turns).
    2) If you think the market is going to go down you can take some off the table by going to a lower percentage and capture some profits for example 90G/4S/3C/3I (or 100G if you want) or you can just go back to the original allocation of 85G/5C/5S/5I. Or anywhere in between. You are moving shares from C/S/I to G when you do this.
    3) If you think the market will go up you can INCREASE your allocation by going 82G/6C/6S/6I and buy more shares.

    Every morning you can look at your actual share allocations and either round up or down based on what you think the market will do to the next nearest whole percent every day as long as your total allocation equals 100%. You can make or lose money.

    There is a lot of stategy that can be implemented in this to help beat the G. Think about it and ask questions if you still don't understand. A similar strategy can be implemented in a downtrend market to DCA into it, however I prefer to go 100G in that circumstance.

    Hope this helps, JB45
    Morality, like art, means drawing a line someplace.
    - Oscar Wilde

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  17. #33

    Wink Re: <1%IFT Option

    The Basics:

    If you invested 10% into a Fund and that Fund goes UP, the next day you
    should see your percentage change in that Fund (unless the gain was too
    insignificant to register an increase) ie.... 10%-------->10.02%

    That 10.02% will allow you to do a <1%IFT and Boost it to 11.00%
    -----------------------------------------------------------------------

    If you invested 10% into a Fund and that Fund goes DOWN, the next day
    you should see your percentage change in that Fund (unless the loss was
    too insignificant to register a decrease) ie.... 10%-------->09.98%

    That 09.98% will allow you to do a <1%IFT and Boost it to 10.00%
    -----------------------------------------------------------------------
    Where the money comes from will depend on what you did with all the
    Fund during the <1%IFT. This get alittle more complicated to explain,
    so I'll just stick to the Basics for now.

  18.  
  19. #34

    Post Re: <1%IFT Option

    The Basics:

    If you do a <1%IFT when your Fund has 2.0% (whole number) AND you
    enter the same exact 2% before noon, this is called rebalancing (just
    like the (L) Funds do). Your forcing the percentages to stay the same,
    no matter what the market does during the day that you made the
    <1%IFT. At the end of the day, different things will happen;

    a) The Fund Closes Up. Instead of 2.01% being in your account the next
    day, you have only 2% again. So you removed that .01% from that fund.
    You'll be re-buying shares in that fund. Whether you see an increase or
    decrease of shares in that fund will be determined on how well or bad
    your overall account does, as your buying 2% of your New Updated
    Account Balance and putting that money back into that fund.

    b) The Fund Closes Down. Instead of seeing 1.99% in your account,
    you'll see 2% again on the next day. You've repurchased shares at
    the lower closing price and added shares to the fund. Yes, you had
    a loss on that day and this will not change by doing a <1%IFT. But
    your accumulating shares on a down day. I tend to wait for two down
    days before pumping the percentages up. Some might refer to this as
    DCA'ing (Dollar Cost Averaging).

  20.  
  21. #35

    Join Date
    Sep 2008
    Location
    West of Atlanta
    Posts
    2,578

    Default Re: <1%IFT Option

    REMEMBER! Your first 2 IFT's are your 2 IFT's for the month. Don't waste them on a <1% move.

  22.  
  23. #36

    Exclamation Re: <1%IFT Option

    Quote Originally Posted by KevinD View Post
    REMEMBER! Your first 2 IFT's are your 2 IFT's for the month. Don't waste them on a <1% move.
    I couldn't agree more. Nicely put, Thank Kevin !

    One last point, there are members so close to retirement OR who are
    actually in retirement who've opted to utilize this method to enhance
    there accounts, without exposing themselves to high risk. Those who
    utilize this method for those purposes may have goals to do a <1%IFT
    as their only strategy and thus, start the month off at <1%IFT levels.
    Everyones circumstances and goals are different, but one MUST know
    that ANY IFT counts towards the 2 per month limit. Even a <1%IFT.

    This additional commentary came out of a conversation with a fellow
    staff member WHO STILL thought his first move back to the (G) did
    not count towards the 2 per month limit. IT DOES. If your in a Fund
    and your first move for the month is to move money back into the
    (G) Fund from that Fund, IT COUNTS ! Public Service Announcements
    should come from the FRTIB, but we all know thats not happening !


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