With the ongoing economic crisis in America, it is not surprising that the stock market has declined significantly.
Millions of people have gone unemployed as companies are closing down (some closed temporarily, and some permanently). People are sitting idle at home watching TV and immersing themselves in the all-time coronavirus news. Almost everything is suffering due to coronavirus pandemic.
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
Number of TSP Millionaires as per the latest reports
The number of millionaires in the TSP plan significantly declined from 49,620 in December 2019 to 27,212 as of 31st March. This drop is more than 45%.
According to the latest reports, the person with the highest TSP balance had $7,395,476.29 on 31st December. A person with the highest account balance was $6,375,795 on 31st March. There is a significant drop of almost 14%. We have no idea if the person with the highest account balance in December is the same with the highest account balance in March 2019.
Let us study the changing Number of TSP Millionaires
Talking about data we saw in January 2012, there were over 200 TSP millionaires. A considerable increase in the stock market prices increased the number of TSP millionaires to 512 in March 2013 and 4,617 in February 2015.
In 2016, according to FedSmith reports, the stock market declined, and the number of TSP millionaires dropped with a reported number of 3,272—at least 21.5% drop from one year to the next but this is still a more significant number than what we have seen in the last several years. In March, the C Fund declined by 12.4% and was 19.65% less than the first part of the year. The S Fund saw a dramatic drop and was 21.40% in March and 28.14% year-to-date.
According to FedSmith, the only TSP funds that are not declining is the G Fund. This increased by 0.4%, and the F Fund increased by 3.10%.
The number of TSP millionaires in 2015 dropped, but the number of millionaires continued to increase as the bull market in stocks lasted for years.
Though the latest number of millionaires is very discouraging, history suggests that we will see an increase in the number when the bear market ends and stocks market return stringer. No one has any idea, of course, when this will happen. For those who want to become a TSP millionaire one day, you are advised to cancel your stock investments during this time when the economy is down and not raising your TSP investments.
