Thanks to the booming stock market the number of federal-postal workers with $1 million or more Thrift Savings Plan accounts jumped to 49,620 at the end of 2019.
Many people decided to ride out the Great Recession so they could miss the downside and return to the TSP's C, S and I stock funds when things got better. Eleven years later, some still haven’t returned.
Mike Causey asked Abraham Grungold, a 34-year civil servant, why so many TSP investors have account balances that are so relatively small?
To protect their annuities from the ups and downs of the stock market, many active and most retired federal-postal workers have a major chunk of their Thrift Savings Plan account in the Treasury securities G fund.
Most people know the rule is buy low, sell high. If you buy that, the problem is knowing when the market has peaked or bottomed out.
Just about everybody knows the stock market is long overdue for a correction of 20% or more — maybe a lot more.
Experts on Wall Street and world financial markets have been predicting another recession, some almost daily, since the last one ended more than 10 years ago.
Could the next government shutdown end the record 10-year bull market and trigger another recession? It may not be long until we find out.
This is the longest bull market in history. But eventually it will change, the market will tank.
Fans of the Thrift Savings Plan hope new withdrawal rules encourage more people to stick with it when they move to another job or retire.
A growing number of Thrift Savings Plan investors are nervously wondering how much longer the current bull market will last, and can last.
Last month the Thrift Savings Plan implemented a series of changes in withdrawal rules it hopes/expects will lead to more people leaving their investments in the TSP when they leave government.
So how’s the retirement nest egg you’re building one paycheck at a time going?
Most of the 34,000 active and retired feds with million-dollar-plus Thrift Savings Plan accounts got there by keeping cool. Most have been steady investors for decades.
The first TSP millionaires were all alike and today, they still have a lot in common. The vast majority have been investing the maximum for 29-plus years.