The stock market slowdown and its return from its lowest point in March had a positive impact on the number of millionaires in the Thrift Savings Plan. Surprisingly, the number of TSP millionaires increased by 66% in the last three months.
According to the TSP statistics, there are now 45,219 TSP participants with a balance of more than $1 million in their accounts.
At the end of Q1, in 2020, the number of TSP millionaires was only 27,212. This number represented a sharp decrease in the number from the end of 2019 when their number was 46,620.
The TSP has released a list providing data on the number of millionaires. That datasheet also proves that slow and steady wins the race.
This data highlights the number of remaining investors who have invested in funds long-term despite the difficulties of the short-term stock market. In 2020, we see the stock market going from its all-time high to a bear market and now back to normal again in just a couple of months.
These frequent swings in the stock market may force employees to spend hours on their account balances each day. But, remember one thing, over a long term of federal career, continuous investment in funds will always give prosperous retirement results.
The TSP data says something else- note that the TSP participants with $1 million or more have contributed for almost 30 years. That means, these people started providing early in their federal services and kept saving for their retirements. Some of our readers have reached this critical milestone and discussed their achievement plan with us.
The S&P 500 (tracked by the C Fund) has approximately 12% annual return on average over the last 30 years. Since its incorporation in 1926, the funds have an average of around 10-11%. To get maximum benefits of these funds over the long-term, a person must invest over many years, move in and out of the stock market to get the best possible returns and nearly end up getting poor returns.
It may be a long process, but the TSP data of millionaires proves that achieving your goals of becoming a TSP millionaire is a real possibility.
