Here’s an unscientific but quick test that may improve your odds of building a very comfortable retirement nest egg: An extra million (or two), in addition to your federal retirement annuity and Social Security. The book — still in the writing stage — will be called “How To Build a Million Dollar TSP?”
Here Is the test part. The question is, would you buy a book about how to make a million dollars from:
A) An individual who hopes to make a million dollars by selling you a book about how to make a million dollars.
B) A long-time fellow fed who’s TSP account just passed the million dollar mark.
B is the correct answer!
Fortunately, you won’t need a book to tell you how most of the TSPs 75,000 plus millionaires got there. With a few exceptions (rich political appointees . some federal judges and wealthy politicians, most people hit the 7-figure mark the old fashioned way. They didn’t time the market or buy low and sell high. They invested for an average of just over 29 years, put their money and the government match into the stock market and stayed there through good times and bad. Like today’s guest, one of the newest members of the Million Dollar Club. He’s a senior mid-level manager with 23 years of civilian federal service and a retired Navy reservist. He’s told his story to fellow employees in hopes it will encourage them to get the most out of their TSP and the government’s 5 percent match. Here’s what he wrote:
“Saw both your recent TSP articles.
Oddly enough – I recently “joined the $1M club” – and decided to share my experience with my co-workers.
I presented it to my Division last month at an “All Hands” meeting because:
– I think it is incumbent upon those of us in Supervisory positions to share these lessons with our younger workforce. I don’t recall people doing that for me, frankly, and while I realize that many people would consider this too private a topic to share, but if you don’t learn this from family & friends, or an investment course (or one of the TSP seminars) how would you ever know?
By personalizing it – I think the lesson has more value.
– I didn’t come from money. TSP is my only investment, and as you can see from the attached talking points – I started in 1998 when I joined the Federal gov’t and have been pretty much maximizing my contributions since then (23 years). As I bought back 2.3 years of Active Duty military time, I will retire at age 58 & some months, with 30 years of service in late 2025, and this amount in TSP makes me financially and mentally comfortable.
Thanks for your articles – one of my team fwd’d both. I think my presentation has perked up their interest a little.
Remember, the actual presentation will appear here Tuesday. You’ll want to check it out and your agency may want to adopt something like it for your coworkers.
Nearly Useless Factoid
By Alazar Moges
Robert Pershing Wadlow is recorded as the tallest man in medical history. The American man was recorded at 8 feet 11.1 inches tall. He passed in July of 1940 in a hotel in Manistee, Michigan, due to a septic blister on his right ankle caused by a brace.
Source: Guinness World Records