Thread: Dealing with ignorant coworkes...

The calculation works out to about $4 per transaction for actual expenses. TSP also says there is an "unknown" amount of "lost" money because of interest NOT earned, while the three-day period following a transaction is taking place, waiting for the funds to clear. If it was equal to the amount of the ACTUAL costs, you're at $8. If you charged $10 per IFT, you'd more than cover all the costs.

There are on average about 190,000 to 200,000 IFT per month, according to the data last year. That dropped to 133,000 in February this year, as people throttled back IFT's. Even if it were 150,000 per month, you'd earn a million and a half per month in fees. That's $18 million per year. Every cost report says the costs are running around $12 million per year.

When you think about the TSP loan program, they initiated a $50 loan fee, not because they had data that showed it costs $50 to do it--- they charge $50 because they just made up that figure, and figured it would deter some people from taking out loans.

Double standards.

You just nailed it. Use the $50 fee for a loan. Well how about a flat fee for IFT's per year such as the 1 year IFT plan is $10 for UNLIMITED TRADES. It is an option that members can use right on the website. The TSP would make a mint we get our unlimited trades and they the TSP are locked in. If you don't choose the option you get the 2 IFT's per month. I like my idea this way they can't rip members off at $10 per trade B.S. LoL

Originally Posted by Braveheart

You just nailed it. Use the $50 fee for a loan. Well how about a flat fee for IFT's per year such as the 1 year IFT plan is $10 for UNLIMITED TRADES. It is an option that members can use right on the website. The TSP would make a mint we get our unlimited trades and they the TSP are locked in. If you don't choose the option you get the 2 IFT's per month. I like my idea this way they can't rip members off at $10 per trade B.S. LoL

Absolutely! $100/year even. Or don't opt in. Too elegant a solution if the problem really was
the 3,000 frequent transfer accounts. TSP should be able to put the income of the IFT fee towards the operations fees, easily covering them and exceeding them. Some kind of windfall to all the plan participants. Tracey Ray - use your 'financial genius' to THAT end, that will get you a REAL ATTABOY and look even better on your resume.

Originally Posted by Paladin

Great idea! I never thought of that one...give us the OPTION to buy unlimited IFTs for the year for a flat price, or maybe 100 IFTs a year for a lower price. It's a WIN-WIN situation: we get mucho IFTs while the buy-and-holders pay nothing. I'll fax a comment to Thomas K. Emswiler.

And I think it would make TSP even more palatable towards replacing Social Security. Something else to think about Tracy...get ya right in there rubbin elbows with the next administration. Better grab it and run with it before your buddy Greggy Long runs over you to get it to Hilary's, Obama's, or McCain's people. Maybe I'll run with it. Social Security??..problem solved

Originally Posted by Paladin

Great idea! I never thought of that one...give us the OPTION to buy unlimited IFTs for the year for a flat price, or maybe 100 IFTs a year for a lower price. It's a WIN-WIN situation: we get mucho IFTs while the buy-and-holders pay nothing. I'll fax a comment to Thomas K. Emswiler.

you know that you are going to make Mr Thomas K. Emswiler a hero and get a big fat bone-us for all these great suggestions... LOL!

I wouldn't mind fees as small as those stated above.

When I had (sold em all, except for my daughters 20th Century GiftTrust) mutual funds the average expense ratio of even the cheaper ones (like Vanguard & Fidelity) were/are about 0.2%. On $100,000.00 that is about $200.00. Not bad, but looking at Fidelity, it states:

Fidelity reserves the right to change the funds available without transaction fees and reinstate the fees on any funds. Fidelity will charge a short term trading fee each time you sell or exchange shares of FundsNetwork No Transaction Fee (NTF) funds held less than 180 days (short-term trade). If these funds are held for more than 180 days they may be sold without a short term trading fee. Fidelity funds, money market funds, funds redeemed through the Personal Withdrawal Service, and shares purchased through dividend reinvestment may be sold without this fee. The fee will be based on the following fee schedule:

Online: $75 flat fee
Fidelity Automated Service Telephone (FAST): 25% off representative-assisted rates, Maximum: $187.50, Minimum: $75
Representative-Assisted: 0.75% of principal, Maximum: $250, Minimum: $100

In addition, once you place 15 short term trades in a 12-month period in your account, Fidelity will charge a transaction fee each time you purchase or exchange shares including automatic investments of FundsNetwork funds (typically available without paying a transaction fee or load) in that account for the following 12 months. Fidelity funds, money market funds, funds redeemed through the Personal Withdrawal Service, and shares purchased through dividend reinvestment are excluded from this fee.

So, I'd say that $10 per trade is extremely gracious and would not mind those charges. However, I don't think I'd want the TSP to institute these market charges (and these are low by market comparisons).


And Troxel, if Taxpayer B pays more taxes, it's their right. No big deal there. Let them. That analogy is not even remotely similar to someone who wants to call Taxpayer B "Ignorant". It's THEIR money, right ?!?!?

How did they come up with 2 moves per month..? Why not 4.. or 5?

Crazy!