The Millionaire’s Club of the Thrift Savings Plan
Who doesn’t want to live a comfortable life after retirement without having to worry about running out of money? How can you find a way to be sure that you’ll be covered throughout the rest of your life in retirement?
One option is to marry another fed. This way they’ll also have a guaranteed lifetime annuity. If you plan strategically, you can maximize your dual contributions to the Thrift Savings Plan. However, an important factor in this method is to stay married to the same person.
As a government worker, you can, in fact, become a self-made millionaire. In the fall of 2016, there were over 16,000 TSP millionaires. Most of those people had careers that spanned an average of 28 years. They invested in the C and S stock indexed funds. They didn’t panic and hide in the Treasury securities G fund, even during the Great Recession. Instead, they held firm, investing the same amounts even during those down years. They bought shares at bargain prices. Now after the recovery, more than 20,000 people have balances between $750,000 and $1 million. And with the stock market still surging, more people are becoming self-made millionaires by the day.
There is also the consideration of couples who both work or worked for the feds. Often their combined TSPs will add up to over $1 million, but won’t separately. It takes time and discipline to learn the tricks to get there. Overall, steady contributions are a vital part of your retirement fund.
If you have questions or concerns regarding your TSP contributions, then it’s always best to reach out to a financial advisor for assistance.