No (sane) person pursues a federal career in hopes of (legally) making really big bucks. That said…

It is possible to sign on as a lifer with Uncle Sam and, while working and getting paid every two weeks, slowly build a portfolio that is worth more than a million dollars. That’s $1,000,000.00-plus folks!!

One of last week’s columns dealt with the growing number of Thrift Savings Plan investors with million-dollar-plus accounts.

Most of them, we thought, came into government after lucrative careers in the private sector, swelling their TSP accounts with rollovers. But the inspiring news is that not all of them were loaded when they came in.

At least one TSP investor, a career fed, made his the hard way. That is, by investing the maximum amount each year in the stock-indexed C, S and I funds. He stuck with them (buying low) when the markets were down.

Here’s his story:

“I was interested in your piece about TSP millionaires (TSP Millionaires & Record Rollovers, April 14, 2010). According to it, 75 federal workers have balances of $1 million or more. ‘TSP watchers say that the millionaire accounts are the result of rollovers by people coming into government from very, very high paying jobs.’

“I retired in the middle of 2009. I began investing in the TSP in 1987. At the end of that year, I had a balance of $2,009, all in the G fund. Back in those days, you were REQUIRED to put most of your money in the G or F fund. You could put only a small percentage of your TSP money in the C fund (I think it was 10% at first; the cap grew every year and finally was removed altogether.) I invested the maximum percentage in the C fund, when the percentage cap was lifted, put 100% in the C fund, or later, also in the S and I funds. I put no money in the G or F funds, except in the early years when you were required to put money there.

“I would be curious about how many of the 75 people with balances over $1 million got their balances that high without the benefit of rollovers. Without any rollover, my TSP balance reached $1.23 million by the end of 2006, $1.37 million at the end of 2007. It fell to $660,000 at the end of 2008, but grew to $887,000 by the end of 2009, and is currently just a shade short of $1 million.

“Granted, I was able to invest more than many employees because of my SES salary. But I did not roll over any money into the TSP plan. I attribute the size of my TSP balance to a) putting the maximum contribution into my account throughout my career, and b) except for the early years when I was required to put money in the G or F fund, putting all my contributions in the C, S, and I funds, whereas it appears from your article that federal employees invest most of their money in the safe-but-low-return G fund.

“I think that the majority of federal employees are missing out on a great opportunity by failing to put more money in the funds (C, S, I) that over time pay the highest returns. Sure, there is more risk. I lost almost half in 2008, and high percentages in some other years. But overall, growth was very good, and I am glad that I pursued the strategy of putting my money in the ‘risky’ C, S, and I funds.

“I also think that federal employees usually fail to see what a great deal FERS is. Note: if you use this in a future column, please do not use my name.

        Read more: Mike Causey

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To reach me: mcausey@federalnewsradio.com

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by Suzanne Kubota

The CDC estimates there were 86,629 fall injuries associated with cats and dogs in the United States in 2006.

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