Readers' Comments
Total Comments: 109
Page 2 of 9
Page 2 of 9
Exposing Long-Term TSP Investors to Risks They Did Not Anticipate
Total Comments: 109
Page 2 of 9
Page 2 of 9
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| Close | Change | YTD | |
| G | $12.5884 | +0.0013 | +2.51% |
| F | $12.1938 | -0.0023 | +2.21% |
| C | $14.8877 | +0.2203 | -10.10% |
| S | $18.6925 | +0.3011 | -5.55% |
| I | $20.4024 | +0.3307 | -17.60% |
| Close | Change | YTD | |
| L 2040 | $16.6321 | +0.2116 | -8.82% |
| L 2030 | $16.1208 | +0.1804 | -7.40% |
| L 2020 | $15.6614 | +0.1476 | -5.94% |
| L 2010 | $15.1114 | +0.0761 | -2.25% |
| L Income | $13.4508 | +0.0427 | -0.14% |
August 29, 2008
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Frequent TSP transfers
SSA
Thu Mar 13, 2008 10:12 AM
Post Reply
One question comes to mind. Do frequent TSP traders have the option of transfering their money to a self directed IRA without penalty? If yes, then do so and stop complaining. It is obvious they are abusing the privilege of low cost transfers while exposing the rest of us to unneccesary higher risks.
TSP investor risk
Department of Veterans Affairs
Thu Mar 13, 2008 10:19 AM
Post Reply
Applause please for the managers of the TSP. If individuals with large holdings in the TSP wish to make frequent trades they should have become brokers. That being said I do admit to making occassional trades to reposition my funds into areas that are performing better.
Perhaps the actual cost of a trade should be assessed to the individual making the trade. Everyone would be treated equally and costs could go into the funds.
Editor
DoD
Thu Mar 13, 2008 10:28 AM
Post Reply
Yet again, errors in this article are as follows:
1. "We've been trying to tell the TSP Board all along that THERE numbers don't show a problem..." I believe THEIR numbers was meant.
2. it's time for the Thrift Board to rethink their efforts to restrict employee's control of their money.". I believe one period at the end of a sentence is appropriate.
3. The booklet on the TSP from that era stated "Your Plan contributions are invested for your retirement, and you should make your investment decision with this long-term goal in mind." There should be a comma after "stated".
Re: Editor
DOD
Thu Mar 13, 2008 2:40 PM
Re: Editor
US Forest Service
Fri Mar 14, 2008 11:48 AM
additional costs
DOD
Thu Mar 13, 2008 10:48 AM
Post Reply
It doesn't matter that the cost per trade has gone down. The loss to the other shareholders when the reduced valuation must be divided among fewer shares and the gains divided among more shares is the cost that is born by the other members.
It is simplistic to say that they all could invest in the same fashion. If EVERYONE pulled out on a Friday and went back in on a Monday then the resulting chaos would destroy the long-term purpose of TSP investing.
The few are taking advantage of the many in a fashion that is completely unsustainable if everyone followed their example.
If you are smart enough to truly time the market then go play day-trades on your own with all the fees, wins, and losses accruing just to you. Or form a separate investing club with others like-minded. Don't play here while passing the losses to others. If you leave things alone it will grow well over time for everyone. You're literally stealing your additional gain from the other shareholders.
MORE FRTIB MISINFORMATION
DOJ
Thu Mar 13, 2008 11:17 AM
Post Reply
Where do you and the FRTIB get this stuff? You both maintain that I shouldn't have the right to manage my account as I see fit because it causes "buy and hold" TSP participants to lose more money (which by the way is totally untrue). So, I'm not supposed to manage my account with the primary goal of maximizing gains and minimizing losses, but to insure that all participants lose equally when the market drop? If someone chooses to invest in TSP and then "just let it ride", that's fine. But don't try to scare people into accepting this proposal by saying that frequent trading is costing "buy and hold" investors money.
What about the loss TSP participants took when the FRTIB saddled us with $350 million in cost overruns to implement the daily trading system when the original contractor was fired.
Are they going to do the right thing and reimburse us since the daily trading system is being scraped?
No way!
short timers
DoD
Thu Mar 13, 2008 11:24 AM
Post Reply
If you want to trade Day to Day, or Week to Week, thenput your money into an appropriate account. But keep it out of my TSP.
TSP ACCOUNT FOR RETIREMENT.
BOR
Thu Mar 13, 2008 11:28 AM
Post Reply
MMMMM....let me see if you take the $15,000,000.00 that it cost all of us for the 3,000 timing traders and divide it among the 3,000, you calculate that it costs $5,000/timing trader. I believe that this cost should be borne by the inconsiderate timing traders, so take it out of their TSP account and leave the rest of the long term TSP accounts alone so we can also make some money. In other words, the 3000 timing traders should pay for their own folly.
Re: TSP ACCOUNT FOR RETIREMENT.
DoT
Fri Mar 14, 2008 8:08 AM
The I fund is a 26 BILLION dollar fund. That means it cost just 6 CENTS for every one-thousands dollars invested, over the entire year.
Included in that 6 CENTS per thousand invested is the price for the PURCHASES of every single I fund holder, who makes 26 purchases throughout the year (each pay period). And included in that 6 CENTS per thousand invested is the cost of more than 550 THOUSAND L FUND HOLDERS, who have their shares bought and sold for them automatically in EACH DAY's REBALANCING.
At the same time, trading in the S fund actually MADE OVER $$ MILLION PROFIT for you- due to Barcaly's using short-shares.
If you limit Interfund Transfers, you MIGHT shave a penny off that 6 CENTS. MAYBE. TSP BOARD has formally said they don't have a clue what limiting trades will do for costs.
But it will also kill much of that $4 million made from the S fund.
JUST SAY NO TO LIMITS!