You Can Too!
Moderator: Aitrus
You Can Too!
This spring I became a TSP millionaire. I am not saying this to brag. I am saying it to encourage you younger members of this forum. I started my TSP 11.5 years ago, in Jan 2007. I was 53 at the time, hence I had the advantage of being able to do the over 50 catch up contribution. I alway maxed out my TSP. Further, a few years after I started my tsp, I transfered about $250K from the two 401Ks I had created during my 7 years with industry. Please note that my fantasy TSP results are not that good. I did a few percentage points better than what you can see because in the earlier years my real TSP balance did not mimic my fantasy balance. Regardless, even with an average annual return of less than 6% and with the utilization of dollar cost averaging, the goal was achieved.
My main point here is that you can do it too! Most will work 20-30 years in civil service. In that time you can easily achieve a similar goal IF you strive to pay yourself first and do so religiously.
My current balance is fully in the G fund generating roughly $80 per day or $30K per year risk free. I am taking a breather at the moment but will jump back in more conservatively, as time goes on. For those of you in your 20s-50s, I want to encourage you to enjoy life, but also save aggressively. I promise you that good things are bound to happen!
My main point here is that you can do it too! Most will work 20-30 years in civil service. In that time you can easily achieve a similar goal IF you strive to pay yourself first and do so religiously.
My current balance is fully in the G fund generating roughly $80 per day or $30K per year risk free. I am taking a breather at the moment but will jump back in more conservatively, as time goes on. For those of you in your 20s-50s, I want to encourage you to enjoy life, but also save aggressively. I promise you that good things are bound to happen!
Re: You Can Too!
That's bad ass. And encouraging. I have 9 years left and only got serious about 2 years ago. From reviewing all of the information on this website, I have nearly doubled my TSP account and have set new goals. Awesome job and congrats.
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Re: You Can Too!
When are you moving to Costa Rico?
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- Posts: 4330
- Joined: Tue Aug 19, 2008 8:51 pm
Re: You Can Too!
Seriously, jd, what are your financial plans now? Should you continue to invest in the TSP or should you be investing in taxable things on which you would pay capital gains at a lower tax rate then tacking on mandatory withdrawals from TSP onto your postcard 1040 taxed at ordinary income rate?
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- Posts: 4330
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Re: You Can Too!
What did you do about estate planning? Seems to me the rules on how many generations 401ks can be stretched changed, as did how long your beneficiaries have to deplete your million dollars. Any thoughts?
Re: You Can Too!
Congratulations on reaching that awesome goal that many of us also hope to achieve.
Thanks for your encouragement!
Thanks for your encouragement!
Re: You Can Too!
Congratulation! Did you achieve this by utilizing the buy and hold strategy or did you time the market?
Re: You Can Too!
I used the seasonal approach for the most part but sometimes deviated from it.
Re: You Can Too!
Congratulation and thanks for the encouragement. I have 11 years to go until I retire from civil service and seeing what you have achieved tells me to keep pressing forward. So here I go full steam ahead in hopes of making it to the Millionaires club when I am ready to retire.
Re: You Can Too!
You are very welcome and goodluck!
Re: You Can Too!
Wow, very encouraging, and disheartening too. I think I must be just below the plateau where 6 percent return would be real money. I started in 2009, had two kids and one divorce, and contributed just the min. to get full matching. Now, I'm at a scootch over 110k. But I'm not 50, and by assessing my timeline to yours, I guess that still puts me in the timeframe you were still coming up with that first 250k.
Re: You Can Too!
It helps that you had 250K even AFTER the 2008 crisis hit. It also helps if you do not have a spouse that objected to maxing out your TSP. Unfortunate for us who have not divorced, and who are always holding back for that 20% market drop around the corner.
Re: You Can Too!
It is quite likely that the market will grow 30-40% or more before dropping 20%.Efire wrote:It helps that you had 250K even AFTER the 2008 crisis hit. It also helps if you do not have a spouse that objected to maxing out your TSP. Unfortunate for us who have not divorced, and who are always holding back for that 20% market drop around the corner.
Owner/creator of TSPcalc.com - "Know your numbers"
Fund Prices2024-03-28
Fund | Price | Day | YTD |
G | $18.15 | 0.05% | 1.05% |
F | $19.08 | -0.06% | -0.74% |
C | $82.21 | 0.11% | 10.55% |
S | $82.43 | 0.30% | 6.92% |
I | $42.57 | -0.24% | 5.95% |
L2065 | $16.38 | 0.02% | 8.37% |
L2060 | $16.39 | 0.02% | 8.38% |
L2055 | $16.39 | 0.02% | 8.38% |
L2050 | $32.73 | 0.01% | 6.95% |
L2045 | $14.91 | 0.02% | 6.58% |
L2040 | $54.38 | 0.02% | 6.22% |
L2035 | $14.34 | 0.02% | 5.79% |
L2030 | $47.67 | 0.02% | 5.38% |
L2025 | $13.15 | 0.03% | 3.43% |
Linc | $25.61 | 0.03% | 2.82% |