[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]The millionaires in the Thrift Savings Plan equaled 5,999 people in December of 2016. But, with the stock market inflating over the last few years, that figure has risen exponentially.
December 2017 saw the number of TSP Millionaires just to 23,962. To put that in perspective, that is a 150 percent increase. The next year, in 2018, amidst a market downturn, that same number dropped but not by nearly as much.
As of December 31st, 2018, TSP millionaires were topping off at 21,432 people. Further data shows us that 29.63 years is the average time that you typical TSP millionaire has been contributing to the fund.
If you’re wondering the most significant account value by any TSP participant, that number is $6,086,238
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To see how much of your income is subject to taxes, an employee must wait for their 1099-R form to be issued to them in January. Things such as Roth contributions are not counted towards this, as the taxes on that should have already been deducted.
There are federal employees who may only hit that million dollar mark (or more) if they transfer funds from more lucrative jobs outside of the US Government into their TSP accounts. There are others who began investing funds early in their careers, who accumulated and surpassed the million dollar mark after several decades of thrifty savings.
That leaves one to wonder what some of the most significant factors they might encounter that could affect the dollar amount in their TSP, and whether you work for a private employer or the federal government, there are many things that could greatly impact this number.
Investing in Other Places Besides the G Fund
If you were to look at history, you’d see that money invested in stocks grows more than the same money put into bonds. The problem is, stocks are unreliable, while the G fund is steady, never going down in any given year. Regardless, in the long run, stocks will yield a better return than a bond. Therefore, you should invest in other places besides the G fund. This advice is especially prescient for young employees with their career future still ahead of them.
The Government Can Match Funds – Take Advantage of It!
If you can dodge taking money out of your account or withdrawing a loan against your Thrift Savings Plan fund, you may certainly see your money grow much faster. Also, putting the maximum amount into the TSP is crucial to having a large return on your investment.
Invest Early
A person who invests large sums into the market for a short period of time can be worse off than one who keeps a steady investment of the TSP funds throughout their entire career. Smart planning from the get-go is the key to hitting that million dollar mark.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36168″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
