More and More TSP Accounts Hit $1M With Smart Investing and Positive Stock Market Streak

More and More TSP Accounts Hit $1M With Smart Investing and Positive Stock Market Streak

Is there any financial advice a person can give a career civil servant who invested money into his Thrift Savings Plan and made millions?


Probably not!


At first, the people who had millions in their TSP accounts were already millionaires before they started working with the government. Some people were fairly expensive lawyers who became a federal judge. They took their outside retirement nest egg and put it into their TSP because of the lower fees and federal oversight.  Then, there were other millionaires who were elected to Congress. Some people made their money before they got into national politics. Some people married into money. Some people made money after being in Congress.

However, with steady investment and an eight-year hot stock market streak, the number of millionaires thanks to the TSP is around 20,000. About 50,000 people have a balance of $750,000 to $999,999. Millionaires tend to invest their money for at least 28 years with the average millionaires club hitting 29 years.

A common thread is being seen with these self-made millionaires, which is this: they invest in good and bad times. They kept their money in the stock market even when the market took a nosedive in the Great Recession. They didn’t trade their stock shares – C, I, and S funds and move them into the G fund (Treasury securities).

The majority of these people had most, if not all, their money in the C and S stock market funds. Some daring investors stayed in the highly-erratic international stock fund, which is on a hot streak right now. It didn’t matter if the market was doing well or bad, they kept investing the same amount of money.

  • When the share prices dropped, they would buy more.
  • If they were up, they would still buy but in less amount.

This is known as dollar-cost averaging.

Several federal people don’t like the discussion of TSP millionaires because they worry their political foes will use the information for their own personal gain.  The reality is that most millionaires made their own money, taking some of their salary (and the matching funds) and investing it. Federal workers should take notice that making smart decisions about their investment can lead to a more than comfortable retirement nest egg.

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