IFT Restrictions In Place For FantasyTSP

[TSPking]

Be aware that starting October 1, 2008 the TSP IFT restrictions are now enforced through the FantasyTSP allocation interface. The following is the official rule that FantasyTSP is following:

For each calendar month, the first two IFTs can redistribute a FantasyTSP member’s account among any or all of the TSP funds. After that, for the remainder of the month, FantasyTSP members may only move money into the Government Securities Investment (G) Fund (in which case the FantasyTSP member will increase the percentage of the account held in the G Fund by reducing the percentage held in one or more of the other TSP funds).

We will count the interfund transfer based on its process date, not the date the interfund transfer is requested.

[RangerDave]

Excellent! I use Fantasy TSP to practice for the real thing.
Question. Does the TSP count by request date or process date?
TSPKing, Thanx for your response yesterday!

[TSPking]

RangerDave,

The IFT count for FantasyTSP is by process date, as it is at www.tsp.gov

[jeffvan1]

If this is truly going to mimick the official TSP site you should consider modifying it so that each F-TSP member gets an automatic $100.00 contibution each pay-period. The contributed funds could be allocated according to how a member is vested at the close of the pay-day. The reason I mention this is because even though TSP only allowed two IFTs per month there is an investment strategy involving pay-day allocations which I used with my spouse's TSP acct last year that took advantage of the ability to move from any fund into the G-Fund even though the IFTs were exhausted for that month. I'm sure some of the sophisticated players here recognize exactly what the strategy is.

[TSPking]

Are you suggesting that you can affectively reallocate the contributed funds by adjusting the contribution allocation before payday?

[jeffvan1]

No. The suggestion was way off base the way I described it. What I meant to say was that each memer should get a 100.00 contribution that they can allocate into any fund so designated for the allocation PRIOR to their receiving the $100.00. Let me give an example using my Fantasy acct and lets suppose this mimicks my actual TSP Acct.

O.K. I already made my two IFT's for the month of October and I'm presently 87%-G / 12%-S. Obviously if the market goes up tomorrow I'll move to 100% G. Have I exhausted my ability to trade for the month. No! Not in my actual TSP acct anyway. Because on Payday (October 7 with Direct Deposit) I change my contribution allocation (prior to 12:00 p.m.) to 100% C (or S, or whatever) anticipating the contribution I'm vesting in will close higher the next day, or day after that, or whenever at which point I move it back into the G-Fund.

[snaffu]

I see what your saying, Your bi-weekly contributions act as an IFT but dont count against you. But do you think a few hundred $$ contribution will have that significant effect on the overall account to warrent the effort involved in setting up the programming here? your talking $100 of a $100,000 account. Thats .1% of the entire account.

I will grant you that the smaller the account, the more effect this will have, BUT 1) You will have to figure out when the last day prior to your payday you can make this change, and THEN 2) project days in advance, what the market movement will do on or after your deposit is made. Most folks (myself included) cant consistantly hit the market 4 hours in advance, much less 4-5 days in advance.

I've thought about bringing this up before, but didnt think the effort for the programmer was worth the returns. And as a programmer myself, I couldnt justify the sugestion. I would also have to concider the confusion factor. At some point, a website can become so complicated, that it overwelms the user. IMHO...

Pvt Snaffu

[TSPking]

The problem with the contribution idea and FantasyTSP is that it will artificially inflate member returns unless total contribution amount for a given return period is deducted before returns are calculated. This does add a bit of complexity but I think its doable. It would require an extension of the member summary page to show contribution payouts and a new interface for contribution allocation.

The amount could be a higher dollar amount instead of $100.

I think this is a good idea. I'll have to think about it though.

[jeffvan1]

Unfortunately programming is not my forte! It is just an idea to have the site mirror the TSP site in a more exacting manner. Just my two cents worth (Oop's, 1.6 cents worth. I forgot we're in a recession)