TSP millionaires


Q. A newsletter I received states there are several TSP millionaires. What is the general characteristics of a TSP millionaire? Are they in management? Upper G-level ratings? Is it the amount that is allocated and the way in which it is invested?

I have invested the total amount that I can, plus investing the total amount to catch up after 50 for 31 years, and I am not close to being millionaire.

A. I work for more than a few of those “TSP millionaires,” and I can tell you that the only things they have in common are:

  1. They have at least $1 million in their accounts.
  2. They contributed substantial amounts of that $1 million to their accounts (sometimes by transferring balances from private sector employer-sponsored plans).
  3. They left significant portions of their accounts invested in the C, S or I funds over long periods of time. None of them relied on outside investment advice, or engaged in what would usually be considered active-market timing, to get there. In fact, most of them just used a “set it and forget it” approach.

About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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