Foolishly moved (inter fund) amount to G on 8/24/15

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board Foolishly moved (inter fund) amount to G on 8/24/15

  • This topic has 9 replies, 4 voices, and was last updated 4 years ago by Anne.
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    Jana H

    Should I keep hanging in the G? My contribution allocation is still C and S. How do you know or cut losses and put inter fund back in the market?


    This entire month is going to be volatile. You probably made a good move and dodged some losses. Some indicators are predicting there will be more steep losses in the coming weeks, but as far as long term investing is concerned, “buy early, buy on dips, and buy often.” In other words, leave your contribution as it is, don’t buy all at once when you move back in, maybe once a month divided evenly(5-10%), and get back in the market.

    TS Paul

    I can’t give individual advice, but in general I do tell people not to ever try to time the market (timing the economy is something completely different). This is one of dozens of similar corrections you will see in your investing career. Unless an investor has worked out a secret system more reliable than their “gut”, all the studies show that they are much better off just ignoring corrections and letting their investments ride.

    The TSP Allocation Guide

    Joe Warner

    First off it depends on your horizon to retire. If it is soon or in retirement keep at least 3 years of disbursement in the G fund. Some call this a bucket. This will allow you to weather out the changes in the market if there is a downturn.

    For the money outside of your bucket you like to invest decide on a long term allocation. TS Paul’s allocation recommendation is nice as over a long run it has given better return than just a fixed allocation. But any allocation method that is good over a long period can give negative returns over even a year or so.

    I completely agree with TS Paul do not use a gut feeling to move money. If you want to develop your own algorithm you can but you will need to do a lot of analyze and cumulate market information and understand trends and such.

    I know this is late but it is general advice good at anytime.



    Are you reallocating now that the S fund is below its price of 8/24/15? If so, what entry price are you targeting?


    Would you please explain to me what “locking your losses” mean? I often hear subscribers discussing the value of their Thrift going down on recent market sell offs followed by the expression “i’m not moving to G since I’ll end up locking in my losses. Does this mean the value of your Thrift remains the same as long as you don’t move your balance?



    There are 2 responses on the other thread; however, when you do an IFT, changing the percentage allocation of funds in your account; what happens is that TSP calculates your total balance at the end of the day and adjusts your number of shares in each fund based on total dollars X allocation percentage.

    For example, if you had 12000 shares of S Fund and you made IFT (prior to 12:00 EST) to put 50% in G Fund and keep 50% S Fund. At close of business today you would have 12,000 x $31.5979 = $379,174.80

    IFT calculation would result as follows:

    $189,587.40/$14.9272 = 12,700.8012 Shares G Fund
    $189,587.40/$31.5979 = 6,000.00 Shares S Fund

    The total amount in your account does not change based on the IFT, it will change daily based on the number of shares times share price. G Fund will increase very slowly whereas, S fund can go either up or down. A $1 increase or decrease in the S fund will result in either a $6,000 gain or loss. You can change it back, but just remember that you only have 2 unrestricted IFTs per month.

    In this example, if the S fund is increasing, a move of 50% to G Fund results in a missed opportunity = 1/2 the gain you would have gotten by remaining in S Fund. If the S fund is decreasing you limit your loss by 1/2. With TSP there is no actual cost to move between funds. Sometimes it is better to accept the loss if there is a better opportunity to making more money elsewhere or limiting the downside and getting back in when it bottoms out at a lower price.


    Anne, thanks so much for explaining this process.


    can you please change your name? I have been on here for a while now and I do not want to get mixed up


    I’m seeing double! LOL

    Maybe you could add a picture so we can distinguish one from the other. Anyone know how to add an image?

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