Winners and Losers: Frequent TSP Trading, Balancing LifeCycle Funds and Money

Recent articles have generated considerable discussion on the site about the cost incurred by those who try to time the market with frequent buying and selling of their TSP funds. A few readers contend that it costs the TSP considerably more to balance the lifecycle funds than the costs incurred by those trading frequently. Does anyone know the actual costs of the lifecycle fund rebalancing and how do these costs compare to the costs created by those frequently trading the I fund?

Whistleblower Gets a Win in Court

A financial economist complained that her supervisor took adverse personnel actions against her in retaliation for whistleblowing. The administrative judge and the MSPB blew off the allegations but a federal court sends the case back to the Board. It found, among other things, that the Board erred in holding that an action that never actually occurred cannot serve as the basis for a protected disclosure.

Traders Taking Bite From TSP Returns

Out of a few million Thrift Savings Plan participants, there are several thousand who trade their funds on a frequent basis. This activity is costing a few million dollars a year in additional expenses. The TSP is considering a recommendation to limit the number of TSP trades that a participant could make during a month.

If I Had Known They Could Fire Me, I Would Not Have Done It

In addition to the typical defense that he was fired because he was a “whistleblower”, this Air Force employee argued that his “employment contract” with the government did not outline the standard of review for indefinite suspensions. Fortunately for agencies, the court held that an agency is not required prior to hiring a new employee “to provide…all the case law that may become relevant….”