Proven Tips to become a TSP millionaire by Bill Eager
Bill Eager, As we know, inflation march has impacted one and everyone slowly, but steadily year after year, the stock market has become unpredictable. Nobody knows what will happen next, how low it will stay?
Nowadays, the increase or the decrease in the number of federal investors or we can say self-dependent millionaires highly depend on the rise or fall of the stock market. According to the survey, a currently working civil servant in Florida is expecting to save almost $2 million in his TSP in a few months’ time. Officially, the next millionaire will declare his savings, the next month. The highest saving point to date was counted in September 2018 when somebody reported 34,128 in the club. Latest reports as of last Dec. 31, state that the percentage was corrected to 19% mid-month and dropped down to 21,432.
Bill Eager, As per the latest estimates, the average TSP balance for the participants of the Federal Employees Retirement System plan that includes around 3.3 million people were calculated to be $138,933 in January, this year. That can be easily compared to the average TSP account balance of $146,642 for the participants of the Civil Service Retirement System that are around 314,193 people.
Surprisingly, all self-made TSP millionaires of the club, except for a few, have in common from the day they were appointed to serve their jobs. All of them have been in a job for a long duration of over 30 years. All of them invested in bulk in the C, S, and I stock indexed funds and stayed with their funds during the Great Recession of 2008-2009, the time when the stock funds were depreciating.
The long-time haul and the stock market pushed many elected service holders into the TSP millionaire category.
But it would be great if we could know how they did it and it can be done? We have a March email from a long-time federal employee who is a retiree and is happily living his life. Yes, we are talking about Steve, who wanted to share his part of becoming a TSP millionaire, according to Bill Eager.
In his March email, he mentioned that he knew lots of storied would come up on the subject matter, but he wanted to share his. He stated that he started from ‘zero’ at the age of 35 and had seen Reagan cuts, unemployment, and a returned call to school. He was broken but fortunate enough to get a federal job. He got his job after FERS became mandatory for all new job-seekers, and he took full advantage of that time.
He invested in the C fund as soon as it was available, and soon he invested in the S and I funds when they were available too. He gave maximum contribution from every paycheck, and when the rules allowed him to add more, he did add more.
Though his account dropped in 2008 and early 2009, one of his coworkers advised him to take his money out of C fund, if he still had some. He replied to his advisor that he rode it down and will ride it back up. He decided to stay on the course and continued investing in C, S, and I funds.
Bill Eager, By 2014 at the age of 62, he got retired. Some ongoing budget and political fights declared his work unsatisfying, and he had some family issues to look after. He thanked his good savings habits and the smart decision that he didn’t withdraw anything from his TSP yet. Yesterday only, he checked his TSP balance, and it says $1,225,000.
He further added that it doesn’t matter when you start. Even a late start can give you success provided you follow the right approach.”