Share Your TSP Balance and Your Age Thread

[Frixxxx]

I am very very surprised that some of you guys been saving for 20+ years and have not been millionare or close to there. Which make me think if I am saving enough :?

Remember, 2008 took 40-50% of some people's money.....recovery has been long and hard. There were also limits on amounts and whten TSP started, I think they had G, F, and C to invest.

Also, goals. Some people are CSRS, some are LEOs (they have a shorter career duration) and most don't start until their 30's because of life changes. The longer you are in the game makes it easier, but the amount being set at the finish line is very unique to the individual.

 

[weatherweenie]

I am very very surprised that some of you guys been saving for 20+ years and have not been millionare or close to there. Which make me think if I am saving enough :?

I didn't start maxing out my contributions until 5 or so years ago. I currently have worked 23 years, and started out as a gs5 making $17,000.

Like frixxxx said, the buy and holders had a 50% haircut in 2008. There was also the tech bubble burst in 2000.

Did you see the report that something like 36% of Americans have ZERO saved for retirement?

 

[InsaneZane1]

I started my dual-status job in 2000. I've taken out a few loans against mine over the years, plus I paid little attention to my TSP account for quite some time too. Since 2006, I've had EOY numbers of +9.6%, -28.3%, +38.7%, -32.5%, +1.8%, +21.6% and +24.3%. Get rid of deductions for loans and put the negative/flat years more inline with historical fund performances and I'm sure I could have easily had $200K+ in my account already.

The things we have to learn the hard way though.

 

[WorkFE]

Did you see the report that something like 36% of Americans have ZERO saved for retirement?

Since such a big chunk of that % is of people ages 18-29 it does not surprise me. I was not much different, there were/are so many other priorities/desires at that age. Retirement is pretty far down the list. I did not consider it a top priority unit I turned 40. I am now 50 with $440K of earnings potential savings. Ten more years and I'm done. Although I won't hit a million I believe I will live comfortably.

What does concern me is the 26% 50-64 with no retirement savings. The clock is ticking and they left some good earnings years on the table especially the right side of that scale.

 

[InsaneZane1]

I am now 50 with $440K of earnings potential savings. Ten more years and I'm done. Although I won't hit a million I believe I will live comfortably.

Never say never. With 10 years left and that account balance, you can easily hit $1M by the time you hit 60. Even a modest 10% annual yield will get your balance to $880K - and that's even if you never invest another penny starting now. A 15% annual yield will put you in the $1.7M range with $0 additional invested. You could possibly even push it closer to $3M if you can average 20%/yr.

 

[Boghie]

I am very very surprised that some of you guys been saving for 20+ years and have not been millionare or close to there. Which make me think if I am saving enough :?

Our initial salaries at age 20 or so were small or smallish - but they should get better as we gain Gubmint Experience:-}. Also, the indestructible who like to drink beer tend not to save for anything forty five years off. I didn't start saving for retirement till age 34 or so. And, time is money. If your salary at age 30 is $30K and you start contributing 10% (for 15% including match) to TSP and you attain a 10% return than your balance should be around $350K at age 50. You will be well on your way.

To have a million in a similar scenario you would have to contribute $15K/year (including match and increasing by inflation) for the twenty years with a 10% return. That would be tough on a starting salary less than say $65K or so (and even then :-}, yowser). Again, time is money. The same guy contributing $3,000 with a match of $1,500 starting at age 24 would be worth about $700K at age 50 and on his/her way to $3M at age 65.

 

[Boghie]

Never say never. With 10 years left and that account balance, you can easily hit $1M by the time you hit 60. Even a modest 10% annual yield will get your balance to $880K - and that's even if you never invest another penny starting now. A 15% annual yield will put you in the $1.7M range with $0 additional invested. You could possibly even push it closer to $3M if you can average 20%/yr.

InsaneZane,

If someone is retiring in 10 years than they should not be investing in a pure equities allocation. The S&P500 has an average annual return of about 10% with a risk/variance of 17%. That means that 2/3rds of the time your return will be between -7% and +27% centering on 10%. But equity investing has 'fat tails', meaning it doesn't respect the tiny odds of a normal bell curve extreme failure. In 2008/9 the S&P500 lost 57% of its value. Someone sitting with $700K at age 60 in 2008/9 would have been sitting at something like $350K at age 61 if they were buy and holders. Would they have stayed invested and made it back by age 66 or would they have bailed after losing $100K (bailing out after losing 15% is probably the best case since there were DAYS the market lost 8%) or so and never got back in? Look in the AT or in any real study of the situation. Folks bailed in didn't get back in.

Losing 15% at age 60 hurts a lot more than losing 15% at age 40.

So, yes, the S&P will return 10%/11% but you need to risk adjust your allocation. This is not gambling and returns are not 'interest' that can be counted on. If you can sleep through two weeks or a month of 2008 style losses than you can adjust or let her ride. If you find your self down 14% in two days you will probably panic out if your golden years are across the doorstep.

 

[WorkFE]

I have several calculated goals. At no time have I ever used 15% in the various scenarios. I generally work in the 3-8% range. The goal amount remains unchanged, the age to obtain is what moves.

 

[law87]

I have several calculated goals. At no time have I ever used 15% in the various scenarios. I generally work in the 3-8% range. The goal amount remains unchanged, the age to obtain is what moves.

I aimed for 10% because I am using IT system, not that I am advertising his premiums but it hasnt failed me yet. $200 a year for subscription is well worth it IMHO. Just when you think you know the market, it turn around and show u something else I'll let I_T worried about the calculation.

 

[texas]

I read an article that said you should have ten times your annual salary saved by retirement. I don't see that happening personally and was wondering how the folks here compare.

It may also serve as a good motivation tool to save more.

So what's your TSP balance and how old are you?

Me, Im 44 and have $148K.

Hi, I'm 57 with 27 almost 28 years. I am 6 years away from retirement. I have 1,000,000 + in the TSP. That came with a lot of saving the max- ALL THE TIME. Good luck.

 

[Frixxxx]

Hi, I'm 57 with 27 almost 28 years. I am 6 years away from retirement. I have 1,000,000 + in the TSP. That came with a lot of saving the max- ALL THE TIME. Good luck.

Would love to know more on how you got to that 7 figure number. Especially knowing the limitations you experienced in the beginning of TSP. Thanks for posting, and gratz on such an achievement.

 

[texas]

Would love to know more on how you got to that 7 figure number. Especially knowing the limitations you experienced in the beginning of TSP. Thanks for posting, and gratz on such an achievement.

Hi, Thanks. I always put away the maximum and only briefly moved stuff around. I'm a buy and hold- equities. I'm at a point where I'll move some things around but still keep equities for growth.

 

[Frixxxx]

Hi, Thanks. I always put away the maximum and only briefly moved stuff around. I'm a buy and hold- equities. I'm at a point where I'll move some things around but still keep equities for growth.

How did you fair through 2008? Were you very active then?

 

[texas]

How did you fair through 2008? Were you very active then?

I'm not as savy as the contributors on this site. I watched it go down probably 30 something + %. - continued buying (cheaply) as it was down and didn't panic too much.

 

[dpmp]

I'm 54, with almost 29 years of federal service. My TSP balance is $410K. I did not start saving until 33 yo after getting married. I contributed 5% (maxed out) when first offered, and raised to 15% of salary as soon as they offered it. The bulk of the gain was after the tech bust and I had a good run until 2008. 2008 put a 20K dent in my TSP; I bailed out to G fund after Lehman Bros went bust, balance 260K. But I also stayed out of the stock market until 2011, and only messed around with it. Not a full time investor. Now, I really wish that I had joined the recovery as soon as March 2009 though.

Summer 2012, I took a 50K loan to buy a condo in Florida. Balance went down to 300K. But have accumulated to what I have now. I have reduced my contribution from 15% back down to 5% for about a year. No plan to add more savings to it since I plan to retire in 4 yrs, anymore won't make much difference. I figure in another 4 yrs, I could accumulate another 100K (too ambitious, I'd say).

 

[InsaneZane1]

My TSP balance is $410K...I have reduced my contribution from 15% back down to 5% for about a year. No plan to add more savings to it since I plan to retire in 4 yrs, anymore won't make much difference. I figure in another 4 yrs, I could accumulate another 100K (too ambitious, I'd say).

I'll give you some numbers that might make it sound like that extra $100K will be easier to get to. $510K/410K = 24% total gain. Without another dime of contributions and factoring in compounding interest, that comes out to about a 5.5% average annual yield (1/4th root of 24). If you add in personal/agency contributions over the course of those years, the required average yield will be even lower. But even without that data, you can likely get that by staying 100% F until you retire. The F Fund is up almost 6% from last year, and it usually does even better when stocks are in bear market conditions. With bull market or even range-bound conditions, you can even get that yield higher by moving quickly in and out of the C/S/I Funds when they start to climb after consolidation periods.

 

[Boghie]

Dpmp,

While I 'liked' the above, the thought of jumping quickly between stock and bond funds is market timing... I would recommend an allocation approach. And, I would recommend talking to a financial adviser at this point. Is market timing your cup of tea. Where is my favorite market timer - 12%AYear (I actually value his/her opinion, but it seems that 2008 did em in)...

I was actually in positive territory through the summer of 2008 - then I jumped in!!! The timing just felt right!!! Uh nope, the market timing gods were not in my corner.

 

[Ron55]

Hi Guys,

Thought I would throw in my two cents worth. I'm 58 and only started working for the government since 2006 so my TSP balance is about 245K. Before that I worked private industry and my 401K with my old employer is about 600k. When I first started out saving I thought I was doing good by contributing up to the match plus 2%. As I got older (starting in my late 40s) I thought 10% contribution was going to be more than enough. Now that I can see the distant light flickering in the tunnel (i.e. the big R) I max out my contributions, which also includes the catch up portion. My goal is to work maybe another 8-9 years.

 

[InsaneZane1]

I'm 58 and only started working for the government since 2006 so my TSP balance is about 245K. Before that I worked private industry and my 401K with my old employer is about 600k. When I first started out saving I thought I was doing good by contributing up to the match plus 2%. As I got older (starting in my late 40s) I thought 10% contribution was going to be more than enough. Now that I can see the distant light flickering in the tunnel (i.e. the big R) I max out my contributions, which also includes the catch up portion. My goal is to work maybe another 8-9 years.

Do you have a goal balance for when you retire yet? $845K is definitely a respectable amount.

 

[Ron55]

If I work another 8-9 years I'm hoping to reach double the savings ~ 1.6 million.