![]() ![]() It took me 30 years to obtain a portfolio of $1 million. My TSP performance is shown in the graph below, with the black line showing my TSP portfolio value versus years of investing. I invested in the TSP continuously for 32½ years. Four years later, I revised my portfolio for the final time as shown in the table. Ten years later, I added the G fund back into my portfolio and added one of the Lifecycle funds, the L2020 fund. First, I increased my contribution percentage from 5% to 11%, and second, I changed my investments from low and medium financial risk investments (G, F, and C funds) to medium to high financial risk investments (C, S, and I funds) as shown in the table below (an “X” indicates where I was invested in at that time):Ĭlick here to see the chart in a new window. In 2003 or 2004 (after investing for about 15 years) I made two important changes to my investment strategy to increase my prospects of retiring with at least $1 million in my TSP. I continued investing in the TSP every payday until my final contribution on Jan. My wife and I thought it was important to invest for the future, so I invested 5% of my pay into the TSP. I was, at the time, a GS-11 making about $40,000 a year, married with a wife and two young children. I made my first TSP contribution in the amount of $148.08 on Jat that time, I contributed 5% to take advantage of the government’s matching contributions. I left active duty Navy service in October 1987 and began working as a Department of the Navy civilian employee under FERS. The TSP has also been a valuable benefit for federal civil service employees under the Federal Employees Retirement System (FERS), enabling federal civil service employees to use the TSP to save for retirement.įEDweek reported in January 2021 that there were 75,420 TSP account holders with assets greater than $1 million I’m one of them, and I’d like to share with you my story and some of my lessons learned.Īlthough I invested in the TSP as a civilian civil service employee, I believe that my experiences are applicable to military personnel who are also investing in the TSP. In her recent article on the Thrift Savings Plan (TSP), Kimberly Lankford noted the TSP has always been a valuable benefit for military members. Vaughan – a retired Navy captain, recently retired federal employee, and Life Member of MOAA – expounds on an important lesson we explain in many MOAA finance articles and publications. The following article (and graphics) by C. Shane Ostrom, USAF (Ret), CFP®, MOAA program director, financial and benefits education/counseling: MOAA hears from many members about their financial situations, and while we cannot offer personal financial advice or planning, we try to help with their understanding of financial issues or with their consumer advice needs. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |