A million dollar TSP account

**DCguy** · 11-01-2007, 08:54 PM

I go to tsp.gov and use the calculator to figure out how long it will take to accumulate a million dollars in tsp at 5% annual rate of return. It says under fers, it takes 27 years. If that is indeed true, most tsptalkers should be millionaires because average tsptalker annual rate of return seems to be much higher than 5%. But how come no one here seems to have a million dollar account?

**FundSurfer** · 11-01-2007, 09:18 PM

First of all, that figure assumes today's money moving forward not money put in 27 years ago. Second, we do have a couple of people who have broken that barrier. Third, I expect to exceed that barrier by the time I retire.

Listing the amount in your account is considered bad form.

**SCHAGAN** · 11-01-2007, 09:23 PM

Originally Posted by FundSurfer

Listing the amount in your account is considered bad form.

Ditto

**DCguy** · 11-01-2007, 09:31 PM

oh no. I'm just wondering if it's really possible. I guess it's possible then.

**oreo** · 11-01-2007, 09:49 PM

You also have to remember that FERS and TSP were not around 27 years ago and even when TSP started, you didn't have the options you have now such as you could only make an interfund transfer once a month in the beginning. The matching wasn't there in the beginning of TSP either.

**Birchtree** · 11-02-2007, 12:03 AM

I plan to be there in two more years and that's without further contributions. Newer employees have a greater potential to build balances faster because there is no longer a percentage cap. Now anyone can put in $15,500 plus agency matching. And if you are over 50 you can put in $5000 more. Time in grade plus portfolio performance will definitely get you there.

**pyriel** · 11-02-2007, 06:14 AM

Hmmmm... how much would a million dollars be worth lets say 10 or 20 years from now? Value of our currency is in the decline and if you factor in inflation, I would bet a dollar that it will actually worth less. I'm not too worried about making that magic million dollars but rather the passive income that are coming in now and later down the line. We should be more concern about how much money (every month) do we need to live comfortably and would we be able to sustain it until the day we hit the dirt;-).
Think what $$ amount you will need to live comfortably and work to attain that goal. Forget about the figure amount in your TSP or your other portfolio, but rather start working on attaining that magic number that will let you live life to its fullest.

As for me, I set $10k a month with everything paid for as my target. I call this play money;-) I seem to be on track to making it...

Pls be careful...

Pyriel

**khunk** · 11-02-2007, 01:07 PM

pyriel, 10k a month ???? I wish I had 10k a month to play with

**Birchtree** · 11-02-2007, 04:28 PM

I got $600K in CD cash and I'm waiting for land values in the Blue Ridge to start breaking. I long to be known as a halfback retiring to North Carolina's western region. I need cooler summers.

**Minnow** · 11-02-2007, 04:34 PM

Originally Posted by Birchtree

I got $600K in CD cash and I'm waiting for land values in the Blue Ridge to start breaking. I long to be known as a halfback retiring to North Carolina's western region. I need cooler summers.

Summers in the BR Mountains, and winters here in FLA... ahhh I share your dream. --- but I got a ways to go my friend --- and plenty of living to do.

**weatherweenie** · 11-02-2007, 04:38 PM

Originally Posted by DCguy

oh no. I'm just wondering if it's really possible. I guess it's possible then.

Definitely possible. The longer time until retirement, the more likely it is.

**James48843** · 11-02-2007, 08:54 PM

Yes- it is very possible, and there are some Federal Employees who currently have million dollar plus TSP balances.

I am not there.

Yet.

But I hope to be if I make it old enough to retire.
(The power of positive thinking

)

Here are some quick links to stories about what average and high account balances are.

Median account balances by age:
http://federalnewsradio.com/docs/med_acct_bal.ppt

A recent story about typical federal employee TSP fund balances:

http://www.federalnewsradio.com/inde...1281662&nid=22

A story from earlier this summer that said at least 40 Federal Employees were already carrying more than a million dollars in their TSP account:

http://www3.washingtontimes.com/nati...1437-5692r.htm

And every the "Average Joe" federal employee, making just 35K a year, can become a millionaire, if he stays in the system long enough. That is the power of time, if you start early.