TSP Millionaires

[Frixxxx]

Thrift Savings Plan spawns millionaires
Officials who oversee the Thrift Savings Plan, the 401(k)-style investment plan for federal employees, always have encouraged employees to take the long view, putting away money throughout their careers to draw on when they retire.
As Government Executive's Retirement Planning columnist, Tammy Flanagan, noted a couple of weeks ago, every dime employees contribute to their TSP accounts belongs to them. Also, employees under the Federal Employees Retirement System receive matching contributions on the first 5 percent of salary that they contribute biweekly (dollar-for-dollar matching on the first 3 percent and 50 cents on the dollar for the rest).
Clearly, some employees are doing the math and realizing that long-term TSP investments can add up. Figures supplied by the Federal Retirement Thrift Investment Board, which oversees the TSP, show that 75 participants in the TSP currently have accounts valued at $1 million or more. And one savvy investor has at least $3 million socked away. All told, more than 10,000 participants have at least $500,000 in their accounts.
See more:
http://www.govexec.com/story_page.cfm?articleid=45514&oref=todaysnews

 

[Minnow]

And one savvy investor has at least $3 million socked away.

Glad to see you finally fessing up Frixxxx!!!

 

[Frixxxx]

Glad to see you finally fessing up Frixxxx!!!

I WISH!!!:nuts:

But I was thinking that if a person out of college (23) got into TSP this year at 16,500/year:
16,500 * (65 -23 = 42) = 693,000
Catchup
5,500 * 15 = 82,500

Contributions alone would be = $795,500

In the G Fund it could easily be 2 Mil!
Anywhere else 3-4 Mil!!

 

[Bullitt]

I'd like to know how many of these million dollar men initiated their 401K by investing in TSP. I'd guess that most of these people rolled in some kind of 401K from a prior job/company that was worth some righteous bucks to begin with.

Either way, it took some element of timing in addition to maximum contributions to reach most of those milestones.

 

[Birchtree]

All it takes is time and a solid buy and hold discipline - keep the money going even when the funds drop in value - that's how more shares are accumulated.

 

[jimijr]

When I was hired the max was 10% and my salary was ~$15,000. Hard to get to a million at that rate, $1500/yr. They rolled a bunch in, certainly.

 

[OBGibby]

Federal judges that came from lucrative private practice law careers before sitting on the bench often bring large retirement packages that in some cases can be rolled into the TSP. I would not at all be surprised if that accounted for most if not all of those high valuations.

 

[jswright]

I remember back in 2000 the TSP people were about to celebrate the first million dollar TSP account then Bush became President and at least 5 people put over a million in the TSP. Don't know if they moved it out.

 

[WorkFE]

For the record, just so there is NO confusion, I am not one of those millionaires

 

[Frixxxx]

I was until 3 today

J/K

I had 5 years in the private sector between Military an civil service time, I racked up over 100K when it finally moved into TSP.

Being single at the time helped Immensely!:laugh:

But I know I have a few more years and maintaining a yearly PIP of 42% is difficult!

 

[Viva_La_Migra]

Depending upon the calculator and market performance, I may just be one by the time I retire. The real question is, should that happen, will I be able to buy a loaf of bread for that $1 million?:blink:

 

[Frixxxx]

Depending upon the calculator and market performance, I may just be one by the time I retire. The real question is, should that happen, will I be able to buy a loaf of bread for that $1 million?:blink:

Yes, but it will be a government healthy loaf.....all others will be banned due to healthcare restraints!:suspicious:

 

[peterson82]

My goal is to top the tsp list (without rolling in) at the end of my career.

 

[Frixxxx]

My goal is to top the tsp list (without rolling in) at the end of my career.

If my goal makes me the top of the list, then so be it!

Hey peterson, great to see you!

 

[amoeba]

I WISH!!!:nuts:

But I was thinking that if a person out of college (23) got into TSP this year at 16,500/year:
16,500 * (65 -23 = 42) = 693,000
Catchup
5,500 * 15 = 82,500

Contributions alone would be = $795,500

In the G Fund it could easily be 2 Mil!
Anywhere else 3-4 Mil!!

anywhere else, could be 0.5 million, depending on the future return of the fund, which hasn't been positive over the last decade plus. I remember 1,100 in 1997. C-fund buying and holding is no sure bet of a long term return now or ever.

 

[Frixxxx]

anywhere else, could be 0.5 million, depending on the future return of the fund, which hasn't been positive over the last decade plus. I remember 1,100 in 1997. C-fund buying and holding is no sure bet of a long term return now or ever.

B&H yes, you are right, but I don't prescribe to that.....It's my future and I'm not setting it on autopilot......

 

[Boghie]

To make a mil,

Starting from zippo
from 1990 through 2009
Average Return: 10.16%

The chap needed to invest $14,000 / year. I don't think that was possible nor legal.

Thus, let us back up to 1988 when TSP came into existence:

Starting from zippo
from 1988 through 2009
Average Return: 11.44%

Now, the chap needs to invest $9,500 / year. I think that is legal and possible.

That additional 2 years and the 1.28% make a massive difference, eh...

 

[jimijr]

I had a chance to be a "net-worth" millionaire until Wilma in 2005 which started the housing crisis early down here. Suddenly my $100k home was no longer worth $400k -$600k, and the prospects for the TSP soon had to scaled back, too.

It seemed wrong somehow that a humble civil servant could amass a million bucks. Now we know -- it was!

 

[Silverbird]

The only way this is conceivable is during the days when "I" fluctuated wildly, and we were able to change our EFTs an unlimited number of times a month. If you played that right, you could see huge gains in one day, and get out and in quick. This ended in 2007 or 2008.

 

[tsptalk]