Thread: What YOU can do to fight back - IFT limit

Originally Posted by nnuut

I think it was James! And a portion of that $4 was generated by other then Frequent Traders at a time of extreme volatility in the markets. It's a setup folks!! Be like me, I never lose my temper!!

My temper is not lost..I know right where it is. We need to dig deeper..to find the real agenda. Been in the govt long enuf to realize that the left hand never knows what the right hand is doing. Until its done. Follow the $. Maybe we will find that 1.2m..ya never know

I wonder what kind of bonuses the board is getting this year? Does it add up to 1.2 something or other?

As another option, why can't TSP just go with a money market fund, AGG, and ETFs of SPY, DWCP, and EFA? Allow current employees a one-time rollover into a brokerage account of our choosing. Make us pay a comparable fee as the private sector? That would save TSP participant costs in the long run, because we could do it through a conduit that is purely electonic driven and wouldn't require as many TSP employees or salaries by the Thrift Board.

I think as TSP participants we should have an elected official on the Board as well, maybe more. I think we should vote and approve of their salaries and any TSP employee salary. I think every current Board member should recuse themselves and be ordered to give full disclosure of any equity holdings in conjuncion to AGG, the S&P 500, Wilshire 4500 and the EAFE. We are entitled to know that their choices in our TSP funds are not involved with the Board's personal motives.

I've a headache!
Attachment 2793

Does anyone have a relative or friend at a high level in a large investment bank? I'm sure if we informed them that there is a large group of unhappy TSP participants, they could create a fund or comparable vehicle for us -- and more importantly, some leverage on powerful ears. The idea may get lauged at but its worth a try.

If they think its worth the trouble and potential $$$, I'm sure they could get Congress to move or at least get a competing contract in there. If we can find a voice more powerful than ours (like a large investment bank that can claim they're for the rights and freedoms of investors), i'm sure in the long run they could make far greater progress than the wealthiest, most powerful 3000 TSP "traders". It would be a way of getting potentially more than 3000 high net worth investors to roll over into their hands. I think the Board would be more willing to comprimise if they knew there existence could be challenged.

I have some buddies from college that work for some IBs but they're not board room execs -- worth asking though. On the low end, if there are 3000 traders x a minimum of $100,000 per account, they're looking at an issue worth exploring.

Originally Posted by nnuut

I've a headache!
Attachment 2793

Maybe you shouldn't have watched that youtube video twice. Once was enuf.

It's more than ridiculous....it's worthy of a class action suit...

FS

Fed,

You pose a good question for us that trade.
Right now TSP is the best for my tax deferred retirement account.
HOWEVER, If the 2-trade rule goes into effect and it hurts my bottom line, I'll just roll it over into an account with my internet broker.

Fidelity lost my business and so might TSP......

Spaf

Originally Posted by fedgolfer

As another option, why can't TSP just go with a money market fund, AGG, and ETFs of SPY, DWCP, and EFA? Allow current employees a one-time rollover into a brokerage account of our choosing. Make us pay a comparable fee as the private sector? That would save TSP participant costs in the long run, because we could do it through a conduit that is purely electonic driven and wouldn't require as many TSP employees or salaries by the Thrift Board.

I think as TSP participants we should have an elected official on the Board as well, maybe more. I think we should vote and approve of their salaries and any TSP employee salary. I think every current Board member should recuse themselves and be ordered to give full disclosure of any equity holdings in conjuncion to AGG, the S&P 500, Wilshire 4500 and the EAFE. We are entitled to know that their choices in our TSP funds are not involved with the Board's personal motives.

Note- and this is very important for everyone to remember-

1. Regarding this 2% figure. That number is being thrown in the air incorrectly.

The SEC guidelines say that a MUTUAL fund, which WE ARE NOT, can charge a fee, or limit trades, or both. In the category of fees, the SEC guidelines say a MUTUAL FUND, which WE ARE NOT, can charge their expenses- UP TO 2%, to enable trades. There is NOTHING which requires a fee on the order of 2%, it says UP TO 2%.

If our costs are trades last year were 16 million, on trading of XXX(We don't know the whole number) BILLIONS dollars over the course of the year, then the expense is tiny. It is FRACTIONS of 1%, not 2% in costs.

TSP has not released the data, as far as I can tell, of the total dollar figure of the amount traded. Only then can anyone hazard a guess on what it costs to make a trade.

WARNING- don't get suckered into thinking that 2% is a good deal to allow you to trade. It's not. It ahs no reflection whatsoever on the actual cost.


2. There are 3.8 million TSP members. The total costs for trading this year are estimated to reach $24 MILLION. If they restrict trades to twice per month, there will STILL be a lot of people trading those twice per month. And the L funds contribute to the amount of shares changing hands, and will continue to do so. The total costs of roughly 4 million members, for the trading done last year, cost, TOTAL, just 16 million dollars, or about $4 PER PERSON. Trades WILL CONTINUE under their new system, just not as many, so let's say it's $3 instead of 4.

They are proposing to limit trades to save a buck a person. Yet they spend more than that just on sending out paper statements once per year.

Originally Posted by Spaf

Fed,

You pose a good question for us that trade.
Right now TSP is the best for my tax deferred retirement account.
HOWEVER, If the 2-trade rule goes into effect and it hurts my bottom line, I'll just roll it over into an account with my internet broker.

Fidelity lost my business and so might TSP......

Spaf

Yes, Spaf,
You can do that- you're retired.

I'm not.

I can't move my money to an outside broker, unless I quit my job. I'm not quite ready to do that.

While not giving in, I still say they would have very little argument to giving us 24 to 36 trades per year rather than the 2 or 3 limit per month. Same bananas - and we would just have to use them responsibly as the market dictates. I think I can live that.