Who wants to be a Millionaire?

[Frixxxx]

2020’s Bull Market Leads to More Federal Employee Millionaires

[FONT=&quot]by: Ian Smith [/FONT]
[FONT=&quot]January 6, 2021 2:08 PM

[/FONT]
https://www.fedsmith.com/2021/01/06/2020s-bull-market-leads-more-federal-employee-millionaires/

"The number of federal employees who have become millionaires by consistently investing in the Thrift Savings Plan has continued to increase sharply thanks to the surging stock market in 2020.
As of December 31, 2020, there are now 75,420 TSP participants with balances in excess of $1 million. The largest account balance is now a whopping $8,804,030."
...
[TABLE="width: 100%"]
[TR]
[TD="class: has-text-align-center, align: center"]Account Balance[/TD]
[TD="class: has-text-align-center, align: center"]Number of Participants[/TD]
[TD="class: has-text-align-center, align: center"]Average Years of Contributions[/TD]
[/TR]
[TR]
[TD="class: has-text-align-center, align: center"]< $50k[/TD]
[TD="class: has-text-align-center, align: center"]3,591,860[/TD]
[TD="class: has-text-align-center, align: center"]5.86[/TD]
[/TR]
[TR]
[TD="class: has-text-align-center, align: center"]$50k-$249k[/TD]
[TD="class: has-text-align-center, align: center"]1,513,635[/TD]
[TD="class: has-text-align-center, align: center"]15.36[/TD]
[/TR]
[TR]
[TD="class: has-text-align-center, align: center"]$250k-$499k[/TD]
[TD="class: has-text-align-center, align: center"]513,389[/TD]
[TD="class: has-text-align-center, align: center"]20.73[/TD]
[/TR]
[TR]
[TD="class: has-text-align-center, align: center"]$500k-$749k[/TD]
[TD="class: has-text-align-center, align: center"]197,713[/TD]
[TD="class: has-text-align-center, align: center"]23.55[/TD]
[/TR]
[TR]
[TD="class: has-text-align-center, align: center"]$750k-$999k[/TD]
[TD="class: has-text-align-center, align: center"]88,923[/TD]
[TD="class: has-text-align-center, align: center"]25.88[/TD]
[/TR]
[TR]
[TD="class: has-text-align-center, align: center"]≥ $1 million[/TD]
[TD="class: has-text-align-center, align: center"]75,420[/TD]
[TD="class: has-text-align-center, align: center"]28.74[/TD]
[/TR]
[TR]
[TD="class: has-text-align-center, align: center"]Total[/TD]
[TD="class: has-text-align-center, align: center"]5,980,940[/TD]
[TD="class: has-text-align-center, align: center"]10.75[/TD]
[/TR]
[/TABLE]

 

[Frixxxx]

I added a percentage column to the fedsmith article. Just for more clarity.
[TABLE="width: 483"]
[TR]
[TD="align: center"]Account Balance[/TD]
[TD="align: center"]Number of Participants[/TD]
[TD]Percentages[/TD]
[TD="align: center"]Average Years of Contributions[/TD]
[/TR]
[TR]
[TD="align: center"]< $50k[/TD]
[TD="align: center"]3,591,860[/TD]
[TD]60.06[/TD]
[TD="align: center"]5.86[/TD]
[/TR]
[TR]
[TD="align: center"]$50k-$249k[/TD]
[TD="align: center"]1,513,635[/TD]
[TD]25.31[/TD]
[TD="align: center"]15.36[/TD]
[/TR]
[TR]
[TD="align: center"]$250k-$499k[/TD]
[TD="align: center"]513,389[/TD]
[TD]8.58[/TD]
[TD="align: center"]20.73[/TD]
[/TR]
[TR]
[TD="align: center"]$500k-$749k[/TD]
[TD="align: center"]197,713[/TD]
[TD]3.31[/TD]
[TD="align: center"]23.55[/TD]
[/TR]
[TR]
[TD="align: center"]$750k-$999k[/TD]
[TD="align: center"]88,923[/TD]
[TD]1.49[/TD]
[TD="align: center"]25.88[/TD]
[/TR]
[TR]
[TD="align: center"]≥ $1 million[/TD]
[TD="align: center"]75,420[/TD]
[TD]1.26[/TD]
[TD="align: center"]28.74[/TD]
[/TR]
[TR]
[TD="align: center"]Total[/TD]
[TD="align: center"]5,980,940[/TD]
[TD]100[/TD]
[TD="align: center"]10.75[/TD]
[/TR]
[/TABLE]

 

[James48843]

Thanks for posting that!

Woo Hoo! I made it to the top 1.26% and hit the mark, thanks in part, to everybody here. I’ve learned a hell of a lot in the last 20 m+ years, including a tin since I found TSPTALK .

They say the first million dollars is the hardest part, that they get easier after that. We shall see! ;-)

 

[Frixxxx]

FEDERAL REPORT
[h=1]Secrets of the TSP’s $2M man![/h]
By Mike Causey @mcauseyWFED

https://federalnewsnetwork.com/mike-causey-federal-report/2021/01/secrets-of-the-tsps-2-million-man/
...
As most federal/postal workers and retirees know, the Thrift Savings Plan is a good deal. About 2% of the 75,000-plus people have become TSP millionaires in the course of their federal service. They didn’t have big salaries, but they had time and patience. And it worked. A growing number have hit the $2 million mark. And these are not rich, hot shot political appointees who brought 401k cash with them.
...

 

[weatherweenie]

I found out the other day that I work with someone who claims to have a tsp balance of $2.5 million. He said that he started contributing to tsp when he was 19, and has left it in the C fund for his whole career. I think he is in his mid to late 40s.

 

[Bullitt]

From the article, I find it interesting that it took 27 years to hit $1M then six years later $2M. It's time in the market and steady savings that will get you to your goals.

It took 27 years (at a starting salary of about $21,000) to make his first million.

So much will ultimately depend on what kind of market you have during your career.

I agree with him about maxing the 401k out. It's unnecessary. Do it a few years, but don't go putting yourself in the poor house doing it.

He doesn't sound like a fan of diversification though.

 

[weatherweenie]

I agree with him about maxing the 401k out. It's unnecessary. Do it a few years, but don't go putting yourself in the poor house doing it.

Then he follows it up with, in getting from 1 to 2 million he was maxed out along with over 50 catch-up contributions.

 

[nasa1974]

From the article, I find it interesting that it took 27 years to hit $1M then six years later $2M. It's time in the market and steady savings that will get you to your goals.

So much will ultimately depend on what kind of market you have during your career.

I agree with him about maxing the 401k out. It's unnecessary. Do it a few years, but don't go putting yourself in the poor house doing it.

He doesn't sound like a fan of diversification though.

If you have a million invested I can see how you can reach $2M in six years. Especially since the market has earned double digits over the last 10 years (with a miner hiccup or two). It takes money to make money.

 

[Bullitt]

He did contradict that maxing out statement later on. I felt this guy's goal was just to have more. He's already working in retirement and seems to be well off without the 401k.

Causey is a tough one to listen to also. Always cheerleading the TSP millionaires as if that's a number everyone needs to reach no matter what he cost. He spends more time talking about how wonderful it is to have all these millionaires when he'd be better off telling listeners to map out a plan for what their needs and goals are in retirement and NOT worry about what someone else has. The thought that everyone needs more is partially what is causing rampant speculation today.

Time in the market is very important, but a good tailwind (bull market) during the drawdown years is even more more important.

 

[ALRetiree]

I used to read Causey’s column in the Washington Post twenty years ago when I was in the Washington area. His columns seemed to be better back then. I read him now and his pieces seem to be repetitive and pretty thin in information. Almost seems like he’s just phoning it in. I think I’ve read his millionaires article a few times in the last year or so.

 

[SteelSaving]

I used to read Causey’s column in the Washington Post twenty years ago when I was in the Washington area. His columns seemed to be better back then. I read him now and his pieces seem to be repetitive and pretty thin in information. Almost seems like he’s just phoning it in. I think I’ve read his millionaires article a few times in the last year or so.

He also carries over the same mistakes from article to article. He always seems to misinterpret what he's looking at.

 

[Frixxxx]

[h=1]The TSP’s million dollar escalator: Better odds than the Powerball[/h]
By Mike Causey @mcauseyWFEDJanuary 26, 2021 1:00 am






Like most of you, I’m sure, I’m way too smart and sophisticated to play the lottery. To stand in line in the evening with a bunch of desperate looking people and wait my turn Look at the odds!

https://federalnewsnetwork.com/mike-causey-federal-report/2021/01/the-tsps-million-dollar-escalator-better-odds-than-the-powerball/

(Spoiler: another Mike Causey article)

 

[Bullitt]

Too bad he wasn't on this afternoon, he could be advising worried TSP'ers not to panic because "stocks are on sale right now."

 

[Frixxxx]

[h=1]More than 8% of American adults are millionaires. Here’s how they got wealthy[/h]Odds are you know at least one millionaire.
More than 8% of adults in the U.S. have enough assets to fit the definition, according to the Global Wealth Report 2020 by Credit Suisse. That works out to more than 20 million Americans.

...


https://www.cnbc.com/2021/02/09/more-than-8-percent-of-american-adults-are-millionaires-heres-how-they-got-wealthy.html

 

[Bullitt]

I think some people give themselves too much credit. How many of them found their way into some Silicon Valley startup that got bought out by Google?

Causey has another podcast out today. Guess what he's talking about?

Most of the 75,420 (as of Dec. 30, 2020) feds with $1 million-plus Thrift Savings Plan accounts have three things in common. And none of which is age, occupation, sex, geographic location or agency.

The vast majority got Club Millionaire status by doing the same three things...

https://federalnewsnetwork.com/mike...t/2021/02/tsp-investors-overlooking-a-winner/

 

[Frixxxx]

New interesting count on TSP Millionaires!

https://federalnewsnetwork.com/mike...021/04/long-range-tsp-investors-set-the-pace/
Long range TSP investors set the pace


By Mike Causey @mcauseyWFEDApril 13, 2021 1:00 am

...

 

[James48843]

The number of retirement account millionaires has never been higher.

Fidelity Investments says their clients are doing well- increasing in number of millionaires by 16% over the last year. TSP also reporting higher numbers.,

Good article in the Washington Post-

https://wapo.st/3K7tvjm

From the article:

“The number of 401(k) accounts with $1 million or more rose 16.2 percent to 595,000 in the second quarter compared with the previous quarter, according to the company’s latest retirement analysis. Year-over-year, the number of 401(k) millionaires increased by nearly 20 percent. Meanwhile, the average 401(k) balance increased by 8.4 percent from a year earlier, reaching a high of $137,800.“

 

[Boghie]

This is still an interesting thread - and one where I can read the commentary of the oldsters out there

I thought I commented early on, but I guess I didn't. I probably did in another similar thread. My only issue with the initial thread post was using a 15% annual return. My annual return is north of 9% since I started tracking in 2003. Not all of those years were great. Some of them were great . But, most of them were meh .

If you are a buy and holder I would probably use a 7% or 8% expected return on a 60/40 allocation. If you can kinda sus things and are willing to swing a bit to avoid kinda predictable crashes you can get to the 10%. If you are Aviator_Guy, ContrarianJeff, and some others around here you might get to the 12% - 15% range. Rolling a 7% return doubles your assets in 10 years, a 10% doubles in 7 years, and a 14% doubles in 5 years. Set your account based on the variance/risk your stomach can handle and spend some time in C/S/I when things are not in chaos (by definition normal) and watch your account grow.

If however, you swing on hope and despair then expect a 3% - 5% annual return. Many, many, many folks get those returns by being smart - but, they ain't. They don't let the market move around and they gimp themselves by rapid trading. A 5% return requires more than 15 years to double. That will decimate you in retirement.

Hang in there during the meh and you will be on this list of millionaires.

GLHF.

 

[nasa1974]

I'm just short of this club but from 2003 to the end of 2024 I averaged 11.95%/year. Now of course I had some bad years and some good years but that's not a bad average.