TSP Millionaires

[SWAVET]

A couple of years like 2009 with 60%+ gain, then I will make the list in 5 yrs and have 20 more yrs to go to get 42 yrs of services.:nuts:

 

[tsptalk]

I think a $3 million + account might cut off some of those 20 years you need. Good luck!

 

[Boghie]

You know what is scary about Tom's stats...


Just over 10,000 of us have over $500,000 in our TSP retirement accounts.


That is a purty penny...

But, ain't there millions of us?

 

[SWAVET]

My current account balance (20K away from double the value from Annual statement for 2006). Base on the calculation from another website that I invest 16% of my income (almost max out at $16,500) & my current balance in TSP with average of 12% return, then I'll have over 500K in 5 years and the estimate show below:

"Your TSP could be worth $2,712,698 after 18 years. *"

 

[Frixxxx]

My current account balance (20K away from double the value from Annual statement for 2006). Base on the calculation from another website that I invest 16% of my income (almost max out at $16,500) & my current balance in TSP with average of 12% return, then I'll have over 500K in 5 years and the estimate show below:

"Your TSP could be worth $2,712,698 after 18 years. *"

Preach it, good!!! I feel the power of your suggestion.

 

[OBGibby]

My current account balance (20K away from double the value from Annual statement for 2006). Base on the calculation from another website that I invest 16% of my income (almost max out at $16,500) & my current balance in TSP with average of 12% return, then I'll have over 500K in 5 years and the estimate show below:

"Your TSP could be worth $2,712,698 after 18 years. *"

An average 12% may be a bit optimistic...But hey, I wouldn't turn it down!

 

[Frixxxx]

I went back and have been reading the comments on this story. It is readily apparent that the civil service community is very ignorant of the abilities of accounts and how they grow based on the activity.

I've seen comments that say that the G Fund has lost money. (Really?)

I've seen CSRS employees talk about a match that they never see.

I've seen the FERS cry about administration fees because of day trading.

I've seen people beg for the roadmap to get to that level.

What I've not seen is the TSP classes and investment classes offered to civilians to ensure they have a future after retirement.

I take a freaking IA test once a year to keep the precious computer commodity safe and protected so it can be a reliable source for future endeavors. But do I see anything about investing in MY future from the government? A once a year seminar for people already past the prime of investing and what they should have done before retirement. Pathetic!

I don't need half of the EAP crap available to me and I want all my fellow employees to get on with their HR departments and DEMAND investing seminars and make it mandatory. If they are going to mandatarily put people in upon hire @ 3%, they better explain why!

Priorities, it helps to have them...

No one is breathing down my neck to invest, but I'll be damned if I don't at least try to be smart on the one thing that will allow me to STOP working and enjoy life.

 

[jdphx]

And there were choruses of "Amens" from the masses!!!


Well said Frixxxx!

 

[alevin]

what dumbfounds me is that TSP has existed for 25 years now (my tenure)-and all they ever said was SAVE! It never occurred to them during the years when it would have made the most difference for me-to offer classes in calculating how much we might need to have by the time retirement hits, much less what it would take to get there.

Only in the past 5 years or so have I seen calculators that give me even a hint-just about the time I discover it's going to be touch and go on having enough-esp if they reneg on SS and/or the annuity (due to gov going broke). FRTIB never called attention to the calculators when they became available, either. Sure wish they had. Ok, enough "poor me/poor us" for the day.

 

[crws]

not to forget the match....

 

[peterson82]

I think a basic Finance class should be a requirement in HS/College curriculums. As alevin said above-just showing how compounding works over a period of 30 years would make many people believers.

 

[Zebe]

Investment classes and employee finance discussion groups would be a good idea. But, I think we are very late getting this into action. The problem for Government and even private sector employers going forward is that employees will not voluntarily retire from employment if they cannot live on their retirement. Effectively they will retire-in-place. What I anticipate are employees that decide not to retire and continue their employment into their 70's, 80's, or 90's. The reality is that if people conclude that they cannot live on their retirement income and unless health problems prevent them from getting to work, they will stay. This means that they may contribute more and more for longer periods of time, adding to the wealth of experience in their job setting. They could be an invaluable asset to the agency or company. But eventually, they will start to be less productive and they may in effect retire-in-place. They may hold an FTE, in government or the private sector, but progressively not be as effective in their position. Assuming this happens on a larger and larger scale with no mandatory retirement age, then management in Government and private companies will have a problem. How will they encourage employees to retire to insecurity? I think that this will be a growing management problem, not just a personal problem for the employee.

 

[Frixxxx]

...Assuming this happens on a larger and larger scale with no mandatory retirement age, then management in Government and private companies will have a problem. How will they encourage employees to retire to insecurity? I think that this will be a growing management problem, not just a personal problem for the employee.

Interesting quandry, Here is how I view it:

Teach people to invest and save. They in turn save smartly and retire early. Their salary is reduce to bring in another hire. like a reset button, except this hire has a different, modernized toolbox for the position. Hire saves and invests and retires a little earlier. This resets the salary for the next hire. And so on, and so on.
Creating a system that creates fluid movement in the personnel hire/retire process makes a better situation than creating a sit and wait until the person dies or is unable to perform the duties.
(I know, generalizations are not the easiest to talk about)
Imagine talking about retirement like most people talk about the weekends?
Also, earlier retirements cause less stress on the system because each person reitires for less.

 

[tsptalk]

I have always said that I don't believe it is an employers responsibility to teach us how to save for retirement. They give retirement benefits voluntarily to attract better employees and to me, that is where the relationship should end.

If they did taught us how to manage our retirement money, the next thing you'd know is you'd have to take a class on how to spend your paycheck.

Plus, there is no one way to do it. They would never teach what many of us here do, which is to move money around. They would likely push us into the L-funds or preach buy and hold, and I don't believe that is their place. It's our money. We need to decide what to do with it.

Like peterson said, it should be taught in school (both retirement savings and how to spend you paycheck) as an elective class.

JMHO

 

[Frixxxx]

Like peterson said, it should be taught in school (both retirement savings and how to spend you paycheck) as an elective class.

JMHO

I guess I look at an employee as a whole picture and not just a worker. I know that most people where I work have security clearances and that a financial issue can remove their clearance and affect their job. Hence, I believe that it would be part of the job for the employer to "ensure" financial stability of their employees.

 

[tsptalk]

I know that most people where I work have security clearances and that a financial issue can remove their clearance and affect their job.

I can see the concern there. Maybe a pamplet?

Can you imagine the costs associated with schooling every TSP participant? And with the gov't as the employer, that means tax payers would have to flip the bill.

We're back to our favorite Rush song Frixxxx, "We've taken care of everything. The words you read, the songs you sing..."

P.S. Did you see there's a new Rush documentary DVD coming out? Beyond the Lighted Stage. VH1 has been playing it over the last week. Pretty cool stuff.

 

[jimijr]

For the last five years or so, I have given a TSP - talk here in my office. I outline the previous year's market performance, how I shifted my funds around, what would've been the best strategy in hindsight. There is a solid core of 6-8 people (out of 21) who attend each year. The other dozen have no interest, seemingly. My main message has always been, it takes money to make money so contribute all you possibly can.

I'll be gone in December. Quite unlike those (above) who will be working into their 70s and 80s, I'm willing to chance it at age 60! My pension will pay my bills, the supplement will pay my taxes, the TSP will supply my walking-around money, ~$20k per year. In two years SS will give me a nice raise, and at 65 medicare will provide some cost savings.

I 'retired in place' in Jan, just counting it down.

 

[Frixxxx]

P.S. Did you see there's a new Rush documentary DVD coming out? Beyond the Lighted Stage. VH1 has been playing it over the last week. Pretty cool stuff.

I don't watch TV often, but I'll look for it!

TSP: Yeah, I guess offering it and having to search for information are two different things and I need to remember that hand-holding is not a requirement.....separate the big dogs from little.:nuts:

~and the meek shall inherit the earth...

 

[tsptalk]

For the last five years or so, I have given a TSP - talk here in my office. I outline the previous year's market performance, how I shifted my funds around, what would've been the best strategy in hindsight. There is a solid core of 6-8 people (out of 21) who attend each year. The other dozen have no interest, seemingly. My main message has always been, it takes money to make money so contribute all you possibly can.

I'll be gone in December. Quite unlike those (above) who will be working into their 70s and 80s, I'm willing to chance it at age 60! My pension will pay my bills, the supplement will pay my taxes, the TSP will supply my walking-around money, ~$20k per year. In two years SS will give me a nice raise, and at 65 medicare will provide some cost savings.

I 'retired in place' in Jan, just counting it down.

Congrats on your impending retirement jimijr!

I did something similar. I gave a free TSP class off site to a women's group in the gov't. A friend of mine asked if I'd be interested. I was thinking there would be dozens or hundreds of people. It turned out to be about 12. But it was fun.

Except for one younger lady (20's or early 30's) who seemed bored to death, they seemed very interested in what I had to say. I showed some basic tech analysis and I think I may have turned a few from buy and holders into investors who wanted to be more active in the management of their accounts.

 

[Mike]

Except for one younger lady (20's or early 30's) who seemed bored to death,

Was she attractive?

I showed some basic tech analysis and I think I may have turned a few from buy and holders into investors who wanted to be more active in the management of their accounts.

... and now they're all broke?