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.
Most experts say it is essential that people under the Federal Employees Retirement System put at least 5% into the Thrift Savings Plan.
Many of the nation’s smartest rank-and-file retirement investors may not be on Wall Street but rather in the cubicle next to yours, in your carpool or even in the mirror.
Despite a decade of mostly good-to-excellent returns in the stock-indexed C, S and I funds, most of the money feds have invested in their in-house 401(k) plan is in the fund which typically had the lowest returns.
As more companies scale-back or more often eliminate retirement plans for their workers, the government’s benefits package looks better and better to many private sector employees. But all comparisons are relative.
If you are associated with the government there are a couple of ways to become a millionaire — legally: Buy a lottery ticket or max out in the Thrift Savings Plan.
The average self-made millionaire had been contributing for 29 years, and more than 64,000 people had account balances ranging from $750,000 to $999,000.
Washington, D.C. area financial planner Arthur Stein joins host Mike Causey on this week's Your Turn discuss how volatility in the U.S. stock market is affecting federal workers' TSP accounts, and whether feds should head for the ‘safety’ of the Treasury securities fund, or stay the course. October 17, 2018
Financial planner Arthur Stein said the last 12 months of TSP returns were not all bad.
Senior Correspondent Mike Causey says TSP millionaires all did the same thing: invest regularly, don't panic when the market hiccups and stay the course.