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Trading Restrictions, TSP Investments, and Lousy Stock Market Performance

IFT Restrictions

Review Clerk
US Postal Service
Mon Oct 20, 2008 9:32 AM

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It's plain and simple that the restictictions on interfund transfers is costing knowlegable investors millions of dollars by not allowing them to take advantage of the huge down turns in the market. If you have moved your money twice in the early part of the month, you must wait until the next month to transfer back into the market. With the current volitility, one can miss out on huge gains due to the restrictions. I have lost nearly 20 percent in my TSP over the last month while making 300 percent in my Roth IRA. How fair is it to restrict our retirement savings?

Re: IFT Restrictions

Nameless, Faceless Nobody
DOD
Mon Oct 20, 2008 10:49 AM
If they are that knowledgeable, (and even Warren Buffet declines to say he is knowledgeable enough,) then let those who want to play in market timing open a private account with Charles Schwab, and go play!

If they need the protections and cost break given by the TSP then they need to accept that TSP is NOT the appropriate vehicle for market timing. The costs to the rest of us is far more than just the trading fees.

TSP Not a Day Trader Account

Program Analyst
Veterans Affairs
Mon Oct 20, 2008 10:03 AM

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I have an investment strategy. I have tracked and watched the ebb and flow of the TSP since 1987. In the 2000-2003 period, I made money following my strategy and I did not have to trade more than once a month and in most cases went several months without moving in and out of funds.

I have another account in which I have money that I can day trade with. I see the allure of day trading and one can make a lot of money playing the market but you can loose it just as fast. I don't want my TSP to be a crap shoot like day trading is and I don't want to pay for someone else's foolishness. If one wants to day trade divide what you are saving and put some of it into another savings/trader account and go for it but you'd likely have as good of luck and more fun it you took it to Vegas and stood at the crap tables for a week.

BUY Buy BUY

manager
usda
Mon Oct 20, 2008 10:11 AM

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The latest direction is per Warren Buffett the Economic Advisor to the OBAMA campaign. The Stock problems are strictly fear and is all brought on to get OBAMA elected by the democratic leadership so you better BUY BUY BUY on stocks. American STOCKS are gonna soar.

Re: BUY Buy BUY

Genius (Colin Powells Brother)
DOD
Mon Oct 20, 2008 12:58 PM
When BUFFET buys we all should BUY.

Thanks

special projects rep
USDA RD
Mon Oct 20, 2008 10:22 AM

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Thanks for dousing the flames of rancor with a healthy dose of facts. It's easy to make a bold statement based on opinion, a little harder to pull together fascts and display them dispassionately so that people can make informed decisions.

I have no sympathy for the day traders. If they want to get rich that way they should take their money out of the TSP and trade commercially. I am not interested is subsidizing their costs.

Abolishing the 401(k) tax break

NEPA Coordinator
Forest Service
Mon Oct 20, 2008 10:53 AM

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Hello! Is anyone listening? There ought to be a huge outcry over the insane proposal to abolish the 401(k) tax break as well as the proposed mandatory 5% savings that would only receive a 3% return, possibly only staying even with inflation. How in the world is that going to encourage people to save for their retirement, much less help them supplement the meager social security benefit? Government gives subsidies for home ownership, oil and gas development, alternative energy development, farms, and a thousand other activities that the government wants to encourage. Why take away the sinlge most important incentive for people to save long-term for their own retirements? And then add insult to injury by forcing us to save at a measly 3%. Hello! Is anyone listening?? This is scarey stuff. They can take 5% of my Social Security tax and apply it to a savings account, but don't force me to "invest" in what I believe is a loser. Or give us back CSRS. And I'm a Democrat, BTW.

Re: Abolishing the 401(k) tax break

H.R. Specialist
VA
Mon Oct 20, 2008 2:23 PM
You're right. This isn't Russia ... is it?

Re: Abolishing the 401(k) tax break

Engineer
DCMA
Mon Oct 20, 2008 3:24 PM
I never once considered that this kind of talk had anything to do with concern for people saving for retirement. Creating a fund like this has no other purpose than to give lawmakers another pot of money to get their hands on and squander to their own benefit.

Re: Abolishing the 401(k) tax break

Salior
DON
Mon Oct 20, 2008 5:38 PM
Is it possible we could all be put in the CSRS? If things are this bad is that possible?

Re: Abolishing the 401(k) tax break

Diversity Manager
DOL
Mon Oct 20, 2008 7:52 PM
As far as the taxpayers go eliminating CRS and FERS would be to their liking since defined pension plans have ended for the most part and none none are inflation protected

special government guaranteed bond fund

Systems Analyst - Sociologist
Retired
Mon Oct 20, 2008 10:56 AM

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If the special government guaranteed bond fund is as "special" as the way the Congresses and the Presidents have handled the Social Security fund, spending it all every year and giving us I.O.U.'s, then no one would want it.

If they really plan to invest the money then there is no improvement over the current system and a 3% return is theft in either case.

Higher Losses Due to Limitation on IFT

Retiree
USDA/Food and Nutrition Program
Mon Oct 20, 2008 11:00 AM

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One must admit that limitation of two-per-month IFTs has in fact contributed to the losses (not able to make transfers as rapid market conditions would dictate) of 20 percent or more. Because I was locked in stocks and had already reached the two month limit, I lost money as I was not able to change to safe haven timely. The market has it stands now does not favor a 'buy and hold' situation. This must change before we all lose the little money we have in our TSP (when in the 'G' fund you are not growing your retirement funds when inflation is factored in (Even those in the L Funds have sustained huge losses and they are the ones the TSP officials said were losing because of trading by others.) I believe there is a middle ground here for everyone. Simply incrase the limit to a yearly restriction rather than a monthly or increase the montly retriction to more than two (which would allow a in/out, in/out situation rather than just a in/out situation).

Re: Higher Losses Due to Limitation on IFT

Info Tech
IRS
Fri Nov 21, 2008 9:34 AM
Here's an idea: You are retired, so roll your money over to a mutual fund company or brokage house. Then, you could move money 'willy-nelly'. Come on. If you really want to money huge sums of money with the market dips & peaks, roll the money out.

Geez. This talk that the limits are unfair is ridiculous! I do invest outside of the gov't so I could trade when I want & pay the price.
Total Comments: 61
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