On May 1, 2008, the federal Thrift Savings Plan introduced a rule that limits the number of interfund transfers that participants can make. All returns presented on this website, including simulated historical returns, comply with this rule.
Ours is not a short-term “market timing” system. Neither is it a “buy and hold” system that ignores changes in the market. Instead, our system automatically adjusts the length of its trades to market conditions. In the years in which a particular TSP fund performed well without excessive risk, we stayed in that fund and did not make any interfund transfers at all. For instance, our Balanced allocation made no interfund transfers in 1996, 1997, 2002, 2006, and 2007. On the other hand, in the years in which market conditions were in a flux, we made 24 interfund transfers, the maximum number possible number under our system. This happened for the Balanced allocation in the year 2000.
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