New to TSP Talk

[JBM1654]

Hello everyone! I am a new federal employee with a lot of time left before I retire. I just joined TSP Talk and I am looking forward to growing our retirement nest eggs together.

Just out of curiousity: What are realistic annual returns for projecting account balance when trying to determine the growth of one's contributions to the TSP? I understand that can vary greatly depending on how aggressive (and lucky) one is, but I am relatively new to investing and I would like to get some idea as to what to expect.

"Enter (as a whole percent) the annual rate of return you expect your investment to earn:"

Thanks!

JBM

 

[nnuut]

Hello everyone! I am a new federal employee with a lot of time left before I retire. I just joined TSP Talk and I am looking forward to growing our retirement nest eggs together.

Just out of curiousity: What are realistic annual returns for projecting account balance when trying to determine the growth of one's contributions to the TSP? I understand that can vary greatly depending on how aggressive (and lucky) one is, but I am relatively new to investing and I would like to get some idea as to what to expect.

"Enter (as a whole percent) the annual rate of return you expect your investment to earn:"

Thanks!

JBM

BOY THAT'S a tough Question!!!! As much as we can get!!! I'll have to refer you to an EXPERT, TOM, hey TOM you better answer this one.
Welcome to the Message Board and Best of luck with your TSP!!
Norman

 

[FAB1]

Hi! Welcome to TSPtalk.

Id better get + 6%

or inflation will just gobble it up.

 

[XL-entLady]

Welcome!

Returns can also vary wildly based on whether we are in a period of expansion or of consolidation. One way to do this would be to use three numbers for estimates, a 3 to 4% conservative return, a 6% moderate return and an 8% higher return. I think that over a career it would be hard to average any more than 8%. But with the magic of compound interest, you probably wouldn't need more.

 

[Frixxxx]

Welcome to the board.....

If you're lucky enough to be an average invester shoot for 8% a year.

But, if you follow the top 25 in the autotracker...you might make a little more than that......

The biggest part of the whole equation is you and your habits.

If you are new to the investing world this math should get you started:

$16,500 * 30 = $495,000

If you retire at 65 and withdrew $1500/month. It would last 330 months or until you are 97. That's just your part....remember you get 5% matching.

So, Good Luck and here's a chart to figure out percentages based on income and remember....GET THE MATCHING...you earn 100% Everytime!:

 

[tsptalk]

Welcome JBM!

 

[Pistol]

Frixxxx, I was looking at your contributions spreadsheet and there where numbers blacked out on the right. What does the blacked out numbers mean?

 

[merlin]

Welcome to the MB. Good luck.

 

[SWAVET]

Hello everyone! I am a new federal employee with a lot of time left before I retire. I just joined TSP Talk and I am looking forward to growing our retirement nest eggs together.

Just out of curiousity: What are realistic annual returns for projecting account balance when trying to determine the growth of one's contributions to the TSP? I understand that can vary greatly depending on how aggressive (and lucky) one is, but I am relatively new to investing and I would like to get some idea as to what to expect.

"Enter (as a whole percent) the annual rate of return you expect your investment to earn:"

Thanks!

JBM

There is another website tspcenter and he has a strategy called "seasonal" with six allocations (100%) per year and the history (1988-2009) show the average return 16.24/annually as follows:
F JAN (Interfund transfer by noon EST on the last business day of previous month)
G FEB
C MAR-MAY
F JUN-OCT
C NOV
S DEC

You may want to give this a try as I found this website and tspcenter about the same time. I wish I found the strategy sooner as I compare to tsp monthly with minimal risk and my own formula and invest only 5%-7% of my income for almost 20 yrs with average 12%/yr return by guessing/luck.

You can gain 8%-10%, but depend how much risk you willing to take.

I'm currently follow the seasonal strategy, but also follow all the pro from both websites when they make they move and hopefully I will out perform all of them someday. I used this to keep track my real tsp account to have 500K within 5 yrs if I be able to keep up with an average 12% as I have 20 yrs to go and still not be able to collect social security at that time.

Good Luck