Author Topic: tsp interfund transfer  (Read 6257 times)

Mrwannabemmm

  • 5 O'Clock Shadow
  • *
  • Posts: 9
tsp interfund transfer
« on: September 17, 2015, 07:37:03 AM »
currently i have 150 k in tsp and almost all of it is in g fund . I want to transfer it to c/s/i funds. What is the best way ie percent allocation to do it and should i do it as a lump some one time transfer or go slow given current market conditions. Thanks.

Full Beard

  • Stubble
  • **
  • Posts: 132
  • Age: 36
  • Location: Northern Virginia
Re: tsp interfund transfer
« Reply #1 on: September 17, 2015, 03:05:08 PM »
I think there are some more things we need to know about you.  How old are you?  When do you plan to retire and start drawing from the TSP?  Do you have other money?  Why are you wanting to make this huge change from 100% government securities to 100% equities?

sol

  • Walrus Stache
  • *******
  • Posts: 8486
  • Age: 43
  • Location: Pacific Northwest
Re: tsp interfund transfer
« Reply #2 on: September 17, 2015, 03:10:28 PM »
In your position, I would transfer the entire balance immediately to the L-fund with the appropriate time horizon.  They expose you to all of the other funds at no additional cost, and are automatically rebalanced for you daily and the asset allocation automatically adjusts quarterly, all without incurring any transaction costs.

Yankuba

  • Handlebar Stache
  • *****
  • Posts: 1358
  • Location: Long Island, NY
Re: tsp interfund transfer
« Reply #3 on: September 17, 2015, 05:37:35 PM »
Agree with Sol - L fund

m1garand30064

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Re: tsp interfund transfer
« Reply #4 on: September 18, 2015, 09:14:08 AM »
The above suggestions of the L fund are correct.  At your age the 2040 fund would be my pick.  Do an interfund transfer and change your contribution to 100% L2040.  Make it a goal to max out your TSP and dont log into your account again until you near retirement.  Be sure you are sitting down when you do.

ZMonet

  • Stubble
  • **
  • Posts: 209
Re: tsp interfund transfer
« Reply #5 on: September 18, 2015, 10:23:01 AM »
I question whether the L funds aren't aggressive enough for fed workers, especially those who will have some sort of pension when they get out.  I think it is fair to count any pension you would get like a government bond since it is backed by the U.S. Government.  With that said, I don't think it would be crazy at your age to go all in the S fund.

westcl2

  • 5 O'Clock Shadow
  • *
  • Posts: 12
Re: tsp interfund transfer
« Reply #6 on: September 18, 2015, 10:35:21 AM »
Just curious why its all in the G?  but as for split how far are you from retirement?  If you're 37 and going for 57(assumption) you have at least 20 years left so i'd be very aggressive.  You can weather some pretty big recessions over that time and still come out way ahead.  I'd look at the L fund's for your year as a starting point then just wipe out the F and G contributions (e.g. ***made up numbers here*** L2040 is C 40%, S 20%, I 20%, G 10%, F 10% your investment pattern could be C 50% S 25% I 25%)

That's how my TSP looks and i'll leave it that way until i'm closer to retirement. 

Also just personal opinion stay away from the F, when the fed eventually ups rates it'll take a beating

sol

  • Walrus Stache
  • *******
  • Posts: 8486
  • Age: 43
  • Location: Pacific Northwest
Re: tsp interfund transfer
« Reply #7 on: September 18, 2015, 10:47:19 AM »
At your age the 2040 fund would be my pick. 

If he's worried about too much G, he might consider the more aggressive L-2050.

Just curious why its all in the G? 

In this case it's almost certainly because 100% G fund has historically been the default allocation for new hires and he never changed it.  There are motions afoot to make the age-appropriate L-fund the default allocation in the future.

Many current feds are also overexposed to the G right now because the TSP went all market timery a few months back and rotated all of the Ls into G out of the F for about half of the fixed income portion, for the same interest rate prognostication reasons you mentioned at the end of your post.  Though the 2030 and up funds don't have much fixed income anyway so it wasn't as noticeable there as compared to the near term Ls.

westcl2

  • 5 O'Clock Shadow
  • *
  • Posts: 12
Re: tsp interfund transfer
« Reply #8 on: September 18, 2015, 11:04:13 AM »
ugh I forgot that the default contributions were all G.  That blows if he's made that many contributions w/o it seeing the market

RFAAOATB

  • Pencil Stache
  • ****
  • Posts: 617
Re: tsp interfund transfer
« Reply #9 on: September 18, 2015, 11:38:09 AM »
I question whether the L funds aren't aggressive enough for fed workers, especially those who will have some sort of pension when they get out.  I think it is fair to count any pension you would get like a government bond since it is backed by the U.S. Government.  With that said, I don't think it would be crazy at your age to go all in the S fund.

I'm all in the S fund.  Unfortunately my contributions are about 10-15% National Guard drill pay so not much.

tiger002

  • 5 O'Clock Shadow
  • *
  • Posts: 36
Re: tsp interfund transfer
« Reply #10 on: September 18, 2015, 03:07:34 PM »
The C fund tracks the S&P index, while the S fund tracks the Dow. From what I've heard, the C fund is a bit less volatile.

sol

  • Walrus Stache
  • *******
  • Posts: 8486
  • Age: 43
  • Location: Pacific Northwest
Re: tsp interfund transfer
« Reply #11 on: September 18, 2015, 03:11:42 PM »
The C fund tracks the S&P index, while the S fund tracks the Dow. From what I've heard, the C fund is a bit less volatile.

The S fund does not track the Dow, that would be stupid for a small cap fund.  It tracks everything in the US market except the biggest 500 stocks, so everything not covered by the C.

forummm

  • Walrus Stache
  • *******
  • Posts: 7389
  • Senior Mustachian
Re: tsp interfund transfer
« Reply #12 on: September 19, 2015, 11:44:02 AM »
The C fund tracks the S&P index, while the S fund tracks the Dow. From what I've heard, the C fund is a bit less volatile.

The S fund does not track the Dow, that would be stupid for a small cap fund.  It tracks everything in the US market except the biggest 500 stocks, so everything not covered by the C.

Yes, C is essentially VFIAX and S is essentially VEXAX. C and S have a slightly lower expense ratio than the already incredible small one that those Vanguard funds have.

tiger002

  • 5 O'Clock Shadow
  • *
  • Posts: 36
Re: tsp interfund transfer
« Reply #13 on: September 19, 2015, 04:06:19 PM »
The C fund tracks the S&P index, while the S fund tracks the Dow. From what I've heard, the C fund is a bit less volatile.

The S fund does not track the Dow, that would be stupid for a small cap fund.  It tracks everything in the US market except the biggest 500 stocks, so everything not covered by the C.

Ah okay, thank you for clarifying that for me.