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Frequent Trading in the TSP

Re: THE BEST TSP advice ever offered

Budgeteer
USDA
Wed Jan 9, 2008 4:12 PM

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I can tell from the negative comments that this article really offended the worshipers of the church of "buy and hold" investing. Kinda reminds me of the often quoted data about the losses due to missing the best market days, without ever mentioning the greater gains of missing the worst market days.

I think it was one of the more innovative and interesting TSP commentatries I have read anywhere, especially for FedSmith.

Re: Re: THE BEST TSP advice ever offered

IT Spec
DOD
Wed Jan 9, 2008 7:43 PM
The negative comments pointed out very real flaws in concrete terms.

You can give us a clever sounding phrases like "church of buy and hold" if you think you need to but that's not going to change the facts.

Thanks very much for some sanity.

Retired Computer Engineer
NASA
Wed Jan 9, 2008 5:02 PM

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Thank you, thank you, thank you for a little sanity. I was beginning to think all media reporting on the TSP were perhaps getting paybacks of some kind from Barclays (manager of the I fund).

I plan to investigate any services offered by the firm of William E. Donoghue if/when the TSP board implements the limits on the IFT transfers tentatively planned for April.

Since I'm retired, I am lucky enough to have a choice to withdraw my money from TSP if I choose and transfer to an IRA elsewhere.

Thanks very much for publishing the first article that I've read published anywhere that offers some arguments that counter the current policies of the TSP which I personally believe after studying meeting minutes is being mis-managed and which doesn't have the proper oversight it needs to serve its clientel(sp?), in my opinion.

Don't Offend the Herd

The Herd
Treasury
Wed Jan 9, 2008 5:38 PM

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Careful Mr. Donoghue. You seem to be offending "the herd". We only want to do what we've have been told to do. We want to keep our hands off of our money so the big firms and government can control it for us. We don't even know how to do it ourselves anyway so, baaaaaaaack off.

signed,
the herd

P.S. The buy and holder faithful have lost all of their 2007 gains in the 1st week of 2008, so they may be a little testy.

Re: Don't Offend the Herd

Supervisor
DHS
Thu Jan 10, 2008 6:50 AM
Herd, that's very entertaining but it doesn't hold water once we look beyond the theatrics and examine the facts.

The most obvious fallacy is that buy and holders have lost all their gains. Buy and hold configurations are all over the board with widely varying allocations. A blanket statement that attempts to lump them all together with equal performance results makes absolutely no sense.

TSP TRADERS

RN
DVA
Wed Jan 9, 2008 6:31 PM

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in 2002 I started to take control of my TSP un fortunatly that was too late as I lost close to 40K For years I stood by and did nothing with my tsp and I said I would never let that happen again and I didn't. I found the TSP investors web site and started to manage my own account and for the past 6 years I have averaged 21% in my TSP. I moved into G on 1/2/2008 and I was glad I did as the market is now down over 10% for the start of 2008. I had a choice and I took it and now I am being told that I may have to suffer great losses again as my ability to get out of a falling market is prevented by the new trading rules. If there is an additional coset associated with frequent trading of my TSP I will gladly pay them but I would like to have a choice. This whole agenda by the TSP board smells funny and I see a scam built into this somewhere. I would like to call for a congressional investigation into the tsp board decision to limit trades. Two trades a month does not solve the problem but

Last 10 year average S&P return is 5.5%

I manage my TSP well.
FED
Wed Jan 9, 2008 9:42 PM

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USA Today reported that the last 10 years the S&P average return was 5.5% and I want to make more than that. Take inflation out of it and I would say the more people need to do better than Buy & Hold. You can get 5% from a online bank. LOL You Buy & Holders what to sit on your rear ends and do nothing. Not me!!! How are your accounts doing now? The C fund YTD yesterday was -5.4%. That is when I bought it. I will ride the wave and take profit at the next rally while you will be trying to make back your losses. If you are in the S fund you took 8 days in a row of losses and I bought much lower than you did. The S fund was donw over 7% YTD. Quit trying to limit my ability to make money while you lose money in a buy and hold death spiral because you can make a decision for yourself. Your Uncle Sam not going to take care of you when you retire. He is going to raise you taxes and cut your Medicare and Social Security. Reality check is coming and you will be way behind.

Re: Last 10 year average S&P return is 5.5%

admin asst
dod
Thu Jan 10, 2008 7:22 AM
Anybody who thinks buy and hold portfolios can't exceed the S&P with periodic rebalancing doesn't understand buy and hold.

WF&A

WF&A
DOJ-BOP
Thu Jan 10, 2008 12:45 AM

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Waste, Fraud and Abuse.... Enough said... allow us to manage our own funds.

Re: WF&A

IT Spec
DOD
Thu Jan 10, 2008 7:18 AM
Limiting frequent trading doesn't prevent you from managing your own funds.

MONTHLY TRADE LIMITS AND INVERSE FUNDS

Regional Information Technology Supervisor
DOJ\BOP
Thu Jan 10, 2008 12:01 PM

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I believe I'm one of the so-called frequent traders the TSP Board is focusing their wrath on. Over the past 18 months, I've moved in\out of stocks multiple times during some weeks, but I"ve also gone several weeks where I didn't make a single move. Averaged out over the past 18 months I made an average of 4.4 moves per month between S\I funds and the G fund. My rate of return on my TSP has been more than double (20%+) of that I would have received with a "Buy and Hold" strategy in one fund, or a combination of funds. I don't consider myself a stock market expert by any stretch of the imagination. I've taught myself to look at various market indicators available to anyone, and then use them to help me decide where I want my money invested at a given time of the month\year. I'm not always right about my decision, but it's my decision and I have to live with. Set the limit at 4 trades per month. That's a fair number for all. Frequent traders and "Buy and Hold" investors

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