By Mike Miles
April 22nd, 2013 | Uncategorized
Q. I have money going into G, F and C funds. I recently changed my distribution to 65 percent and 35 percent for G and F funds, respectively. With C Fund losing money, how can I transfer my existing C Fund balance into the F Fund so I’ll stop losing money from my existing C Fund?
I see the procedure to change distribution between the funds. I don’t see a procedure to transfer all of my existing balance from one particular fund into another fund.
A. I’m a financial planner. This is a question for the Thrift Savings Plan’s website tech support staff.
USPS Letter Carrier Says:
April 27th, 2013 at 11:39 pm
The next lower option below Contribution Allocation is Interfund Transfer. Click the link for Interfund Transfer to move your money around.
The C Fund has not lost money this year as it is up 10% for the year, up 14% the last 12 months and up for the month of Apr.
May 27th, 2013 at 3:02 pm
You can change you asset allocation with an interfund transfer option, which should be located next to the contribution allocation change.
However, I would advise against moving out of a particular fund just because it is losing money in the short term. All you’re doing is selling low and buying high, which can damage your returns in the long run. Instead, you should be setting an asset allocation that is suitable for your age and risk tolerance and stick with it.
June 20th, 2013 at 12:36 am
Whatever you do, don’t put it into the F Fund right now with interest rates rising and poised to continue to rise for the foreseeable future. At this point in the market cycle, in my opinion you should be invested in the stock funds (S and C).