New System to Comply with TSP Restrictions

Due to the May 2008 restrictions on interfund transfers, we designed a longer-term TSP system. This system complies with the two-IFTs-per-month limit.

Our revised strategy is a "composite system" based on five models. Each model has historically beaten a buy-and-hold approach and had superior risk-reward metrics. The models incorporate long-term trends; intermarket analysis (relationships between bonds, commodities, stock sectors, etc.) and key price/volume patterns. We've found the individual models work even better when combined into a composite system. We use a weighted score of the timing models to determine if we should be fully invested in stock funds or the G Fund.