Who’s a TSP Millionaire?

February 25, 2018

The Thrift Savings Plan had a total of 9,599 millionaires by the end of December 2016, and this was beyond the expectations of many stakeholders. Since then, there has been rapid growth in the number of millionaires joining the plan and this is largely attributed to the rising stock market.

By the end of 2017, the number of TPS millionaires had grown by close to 150% when compared to the 2016 figure. According to the Federal Retirement Thrift Investment Board (FRTIB) data, most of the millionaires have been TPS participants for an average of 28.87 years.

The TPS plan has over five million participants, and millionaires form close to 0.48 percent of the total participants. This is an impressive number considering the number of millionaire participants before 2012. The stock market has been on the rise in recent months and entities such as the Dow Jones Industrial average registered their highest ever gain in over seven decades during Donald Trump’s one-year anniversary.

It is interesting to know that in January 2012, there were only 208 TPS millionaires in the country. Since then, there has been a rapid increase in the number of TPS millionaires in ac passing year. The following is a summary of the number of TPS millionaires since 2017;

Date TPS millionaires

December 2017	23,962
December 2016	9,599
February 2016	3,272
February 2015	4,167
December 2013	1,695
March 2013	562
January 2012	208

Taking Managed Risks is Critical in Becoming a Millionaire

It takes some risk for one to become a millionaire. The G fund is considered as a TPS investment option with less risk. The only way you can lose money in the G fund is through inflation and one can end up losing a substantial their retirement savings.

However, it is not clear where the over 23,962 TSP millionaires in TPS plan put their funds as everyone has the liberty to make their personal investment choices. It is believed that most of the millionaires invest their money in TPS stock funds with only a small percentage of their investment going to the G fund.

The TPS stock fund guarantees quick returns as compared to other TPS investment options and that is why it is the choice of most TPS millionaires. Millionaires that are willing to take more risk invest in the $1 million dollar TPS club. It is important to point out that investing in TPS as its own risks considering the 2008 loses that were recorded by the G fund and the C fund.