15% a year. Excluding contributions. Show me who can get that for me and sign me up. I mean every year since 1997.
PS. 28.5 is not my age. That's number of years of service. You guessed it right, I am already in my MRA. You are still young and has plenty of time to catch up, plus you are part of TSP talk. Wish I've known TSP talk years ago. Just joined 2 months ago. Probably would have made more.
Emotions should never play a role in one's investing strategy!
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15% a year. Excluding contributions. Show me who can get that for me and sign me up. I mean every year since 1997.
15% a year return sounds fun and exciting but very unlikely. Wasn't Madoff pulling in 15% a year?
The media and brokerage firms want you to believe investing is a game because it equates to more money for them. Retirement is not a Cialis commercial.
There was a poll done on this a few years ago. It's just an arbitrary number and really, it doesn't matter what somebody in a magazine or blog says you need in retirement. It only matters what you as individual will need in retirement. Will your house be paid off? Will you be leasing a car every 3 years in retirement? Will you be living in a region where prices for everything are astronomically inflated (LA, NYC)?
Other considerations are social security payments and possible pension payments, though with my time frame (I'm 34), I don't plan on social security being there for everyone. Depending on your horizon, pension reform is also highly likely scenario (see Detroit) and worth considering in your long term planning if applicable.
Some smart minds such as Bach, Siegel, Clements, and Tobias have said that if you do a 10%-15% savings rate over the course of your working years you'll be living comfortable in retirement. Easy on paper but not so easy when you have children, car payments and other obligations that come before saving. Of course with any savings goal, the longer your time frame the higher likelihood of success.
A good place to try is financialengines.com. You can set up a free account, plug in your 401k numbers, earning assumptions and goals, and their calculator will tell you the probability of attaining it. Not a bad site to check in on periodically to keep it in perspective. I also suggest you not set your earnings assumptions too optimistically high.
I'll share .... 39yr old - 13 years in service - 5% contribution - current balance is 140K - had borrowed ~100K from it during the past 13 years and still have around 28K loan balance. How am I doing so far?
59 yrs old next week and $361,000 in tsp and have IRA on outside retiring soon I hope have 28 yrs now with the gov and ready to leave. Company already talking sequesters again where I work.
54 with 29 years of service. Current TSP $335,000. Took quite a haircut ten years ago in a divorce. OUCH.
TSP/401K balances and age are important when paired with other assets/income. If you are relying on SS and 401K/TSP only then 1 million seems reasonable. If you have pensions, IRA's, stocks etc. that would impact the neccessary balance.
I prefer to calculate my need at an desired annual intake and factor in all the incomes to achieve that. Nothing wrong with making the Goal a million though.
You all seem to be doing quite well and on track.
In Dog Beers I've only had two.
Been in TSP for about 9 yrs. Currently have about $61K. I'm active duty, so no matching. I really started upping contributions over the last 1.5 years. Currently throwing 32% of my pay towards TSP. Next year I'll up it to 37% and max out contributions. Hopefully I'm able to do that until I retire from the military. I also have about $210K between my Roth IRA and another taxable investment account.
Funny how I'm actually saving more now then when my wife was still working and we didn't have our 2 kids.
16 years in TSP with $247,000.,probably wont make 15% this year!
I have not been able to dodge corrections, every time my account reaches a balance of $258,000 which has been around 4 or 5 times this year there is a correction. I read an article that mentioned there is a slow melt up and then market sells off and takes profits in 1-2 days. This really sucks, I need another strategy and use discipline to sell when market reaches new high. Right around July 4th, my husband told me to sell and did I listen, no, unfortunately.
54 with 21 yrs, $450k tsp.
Contributed 24 yrs and have $350,000 in tsp have total 32 yrs including forest service time and I'm 60 getting RIF Oct. 1st.
tom1
Weatherweenie's Account Talk
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