Re: [TSPStrategy] Red Model Update

Boy did I mess up! Two days ago I pulled out of S and went to G since I'm retired. Ugh....

On Thursday, November 5, 2020, 11:46 AM, Locutusoftexas <mrweyl@hotmail.com> wrote:

Because the stimulus package is in limbo, the Fed announced on October 30 that it was (as near as I can tell) loosening restrictions to the so-called Main Street Loan Program for small businesses. I continue to interpret this as another of the previously unconventional Fed policies that Zweig would have addressed in his book, if he could have imagined it. At the time, all the Fed did was to change the discount and fed funds rate and modify bank reserve requirements. So I have increased the Monetary Model Indicator by plus one. However, the monetary model is already pegged at its most bullish level.

Meanwhile, the trend obviously moved back to bullish, which is the problem with trend indicators. So the Zweig model has returned to its most bullish level.

Now I return to watching paint dry -- oops, I mean the election results.

Good luck,
Tex

[TSPStrategy] Fed Model Update

Because the stimulus package is in limbo, the Fed announced on October 30 that it was (as near as I can tell) loosening restrictions to the so-called Main Street Loan Program for small businesses. I continue to interpret this as another of the previously unconventional Fed policies that Zweig would have addressed in his book, if he could have imagined them. At the time of publication, all the Fed did was to change the discount and fed funds rate and modify bank reserve requirements. So I have increased the Monetary Model Indicator by one. However, the monetary model is already pegged at its most bullish level.

Meanwhile, the trend obviously moved back to bullish, which is the problem with trend indicators. So the Zweig model has returned to its most bullish level.

Now I return to watching paint dry -- oops, I mean the election results.

Good luck,
Tex

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Re: [TSPStrategy] New Catch Up and Matching

I can start catch-up in 13 months (2022). Hopefully if there are any kinks, they'll be ironed out by then. If I was doing spillover for 2021, I'd definitely be looking at PP20 very closely to make sure you're still getting the 5% match on your spillover. 

On Thu, Nov 5, 2020 at 10:05 AM Yahoo! Mail via groups.io <bnancyanne=yahoo.com@groups.io> wrote:

We "used to" have to be very careful to run the deduction the full year to receive the full contribution match, by carefully planning the deduction the full year without exceeding.  Hopefully it is that simple now, including if you change agencies in the middle of the year and the pay periods are different.

We'll see.

On Thursday, November 5, 2020, 11:01:59 AM EST, Mike VanAmburgh <mjv325@gmail.com> wrote:

Yep, it is that simple. TSP sent an email just a couple weeks ago about it:

Catch-up contributions will soon get easier

Starting in January 2021, we will make the catch-up process easier: if you're turning 50 or older, you'll no longer need to make two separate elections each year in order to take advantage of catch-up contributions.

Instead, your contributions will automatically count toward the IRS catch-up limit if you meet the elective deferral limit and keep saving. If you're eligible for an agency or service match, contributions spilling over toward the catch-up limit will qualify for the match on up to 5% of your salary. Your election will carry over each year unless you submit a new election.

For 2020 catch-up contributions, you do still need to complete the current process and make a separate election. Check current contribution limits to make sure you're on track this year.

On Thu, Nov 5, 2020 at 6:59 AM Mark Faust <mfaust350@gmail.com> wrote:

Good Morning All,
So, I have read numerous versions of the new catchup contribution rule going into effect.
I have no problem with it...In fact, I think it is a great idea....
But I am having a hard time wrapping my head around the matching portion of it...

In the past, I divided the max contributions by the number of pay periods to ensure I was getting the full benefit of the match.
I then setup the Catch Up separately which had no bearing on matching....

Now I am trying to decide how to setup my bi weekly allocation next year which will include regular and catch so as not to tap out my matching too early.....

is it as simple as (19500+6500)/pay periods?  Will that still ensure I get the full match???

Sorry if this was discussed before.....
thx

Bama

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[TSPStrategy] Red Model Update

Because the stimulus package is in limbo, the Fed announced on October 30 that it was (as near as I can tell) loosening restrictions to the so-called Main Street Loan Program for small businesses. I continue to interpret this as another of the previously unconventional Fed policies that Zweig would have addressed in his book, if he could have imagined it. At the time, all the Fed did was to change the discount and fed funds rate and modify bank reserve requirements. So I have increased the Monetary Model Indicator by plus one. However, the monetary model is already pegged at its most bullish level.

Meanwhile, the trend obviously moved back to bullish, which is the problem with trend indicators. So the Zweig model has returned to its most bullish level.

Now I return to watching paint dry -- oops, I mean the election results.

Good luck,
Tex

_._,_._,_

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Re: [TSPStrategy] New Catch Up and Matching

We "used to" have to be very careful to run the deduction the full year to receive the full contribution match, by carefully planning the deduction the full year without exceeding.  Hopefully it is that simple now, including if you change agencies in the middle of the year and the pay periods are different.

We'll see.

On Thursday, November 5, 2020, 11:01:59 AM EST, Mike VanAmburgh <mjv325@gmail.com> wrote:

Yep, it is that simple. TSP sent an email just a couple weeks ago about it:

Catch-up contributions will soon get easier

Starting in January 2021, we will make the catch-up process easier: if you're turning 50 or older, you'll no longer need to make two separate elections each year in order to take advantage of catch-up contributions.

Instead, your contributions will automatically count toward the IRS catch-up limit if you meet the elective deferral limit and keep saving. If you're eligible for an agency or service match, contributions spilling over toward the catch-up limit will qualify for the match on up to 5% of your salary. Your election will carry over each year unless you submit a new election.

For 2020 catch-up contributions, you do still need to complete the current process and make a separate election. Check current contribution limits to make sure you're on track this year.

On Thu, Nov 5, 2020 at 6:59 AM Mark Faust <mfaust350@gmail.com> wrote:

Good Morning All,
So, I have read numerous versions of the new catchup contribution rule going into effect.
I have no problem with it...In fact, I think it is a great idea....
But I am having a hard time wrapping my head around the matching portion of it...

In the past, I divided the max contributions by the number of pay periods to ensure I was getting the full benefit of the match.
I then setup the Catch Up separately which had no bearing on matching....

Now I am trying to decide how to setup my bi weekly allocation next year which will include regular and catch so as not to tap out my matching too early.....

is it as simple as (19500+6500)/pay periods?  Will that still ensure I get the full match???

Sorry if this was discussed before.....
thx

Bama

Re: [TSPStrategy] New Catch Up and Matching

Yep, it is that simple. TSP sent an email just a couple weeks ago about it:

Catch-up contributions will soon get easier

Starting in January 2021, we will make the catch-up process easier: if you're turning 50 or older, you'll no longer need to make two separate elections each year in order to take advantage of catch-up contributions.

Instead, your contributions will automatically count toward the IRS catch-up limit if you meet the elective deferral limit and keep saving. If you're eligible for an agency or service match, contributions spilling over toward the catch-up limit will qualify for the match on up to 5% of your salary. Your election will carry over each year unless you submit a new election.

For 2020 catch-up contributions, you do still need to complete the current process and make a separate election. Check current contribution limits to make sure you're on track this year.

On Thu, Nov 5, 2020 at 6:59 AM Mark Faust <mfaust350@gmail.com> wrote:

Good Morning All,
So, I have read numerous versions of the new catchup contribution rule going into effect.
I have no problem with it...In fact, I think it is a great idea....
But I am having a hard time wrapping my head around the matching portion of it...

In the past, I divided the max contributions by the number of pay periods to ensure I was getting the full benefit of the match.
I then setup the Catch Up separately which had no bearing on matching....

Now I am trying to decide how to setup my bi weekly allocation next year which will include regular and catch so as not to tap out my matching too early.....

is it as simple as (19500+6500)/pay periods?  Will that still ensure I get the full match???

Sorry if this was discussed before.....
thx

Bama

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Re: [TSPStrategy] New Catch Up and Matching

That is my same concern- I don't think the infographic in a subsequent email response, or anything else I have found addresses that concern.

On Thursday, November 5, 2020, 07:59:52 AM EST, Mark Faust <mfaust350@gmail.com> wrote:

Good Morning All,
So, I have read numerous versions of the new catchup contribution rule going into effect.
I have no problem with it...In fact, I think it is a great idea....
But I am having a hard time wrapping my head around the matching portion of it...

In the past, I divided the max contributions by the number of pay periods to ensure I was getting the full benefit of the match.
I then setup the Catch Up separately which had no bearing on matching....

Now I am trying to decide how to setup my bi weekly allocation next year which will include regular and catch so as not to tap out my matching too early.....

is it as simple as (19500+6500)/pay periods?  Will that still ensure I get the full match???

Sorry if this was discussed before.....
thx

Bama