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:
- They have at least $1 million in their accounts.
- They contributed substantial amounts of that $1 million to their accounts (sometimes by transferring balances from private sector employer-sponsored plans).
- 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.