You Can Too!

General TSP Discussion.

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jdeacon
Posts: 136
Joined: Fri Mar 05, 2010 4:38 pm

You Can Too!

Post by jdeacon »

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!

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Ruystar
Posts: 18
Joined: Tue Jul 23, 2013 9:20 pm

Re: You Can Too!

Post by Ruystar »

Thanks for the encouragement!!! :0)
"Liars can figure and figures can lie..."

Ruy

PhilJohn
Posts: 392
Joined: Tue Apr 25, 2017 10:38 am

Re: You Can Too!

Post by PhilJohn »

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.

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: You Can Too!

Post by crondanet5 »

When are you moving to Costa Rico?

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: You Can Too!

Post by crondanet5 »

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?

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: You Can Too!

Post by crondanet5 »

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?

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mhende2
Posts: 87
Joined: Wed Oct 12, 2016 12:32 pm

Re: You Can Too!

Post by mhende2 »

Congratulations on reaching that awesome goal that many of us also hope to achieve.
Thanks for your encouragement!

Octjan2
Posts: 332
Joined: Thu Feb 25, 2016 8:01 pm

Re: You Can Too!

Post by Octjan2 »

Congratulation! Did you achieve this by utilizing the buy and hold strategy or did you time the market?

jdeacon
Posts: 136
Joined: Fri Mar 05, 2010 4:38 pm

Re: You Can Too!

Post by jdeacon »

I used the seasonal approach for the most part but sometimes deviated from it.

23V23C
Posts: 72
Joined: Sun Sep 24, 2017 2:13 pm

Re: You Can Too!

Post by 23V23C »

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.

jdeacon
Posts: 136
Joined: Fri Mar 05, 2010 4:38 pm

Re: You Can Too!

Post by jdeacon »

You are very welcome and goodluck!

tspme
Posts: 12
Joined: Thu Oct 07, 2010 3:51 pm

Re: You Can Too!

Post by tspme »

Thanks for the encouragement :)

Scout
Posts: 15
Joined: Mon Apr 16, 2012 9:51 am

Re: You Can Too!

Post by Scout »

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.

Efire
Posts: 42
Joined: Wed Jun 08, 2011 9:22 pm

Re: You Can Too!

Post by Efire »

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.

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mjedlin66
Site Admin
Posts: 1569
Joined: Wed Oct 02, 2013 7:51 pm

Re: You Can Too!

Post by mjedlin66 »

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.
It is quite likely that the market will grow 30-40% or more before dropping 20%.
Owner/creator of TSPcalc.com - "Know your numbers"

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Fund Prices2024-03-28

FundPriceDayYTD
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%

Live Charts

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".