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Globalpack
08-03-2014, 03:30 PM
I read an article that said you should have ten times your annual salary saved by retirement. I don't see that happening personally and was wondering how the folks here compare.

It may also serve as a good motivation tool to save more.

So what's your TSP balance and how old are you?

Me, Im 44 and have $148K.

tsptalk
08-03-2014, 03:42 PM
If you can average 15% a year, your account will double approximately every 5 years (excluding new contributions). That is a reasonable goal but you may have to dodge a few corrections to do it.

That means in 15 years you'd have about about $600K, and $1.2M in 20 - without new contributions. So with contribution included, you might be OK, although inflation will get you.

If you can squeeze out 20% a year (very tough) you would double every 3.6 years. So watch out for those bear markets. :)

OBGibby
08-03-2014, 05:32 PM
You might garner a greater response if you set up a poll. Would love to see a two-pronged poll or survey - 1) How many years contributing to TSP, and 2) TSP balance range ($150K -$200K, etc). Don't know if you can set up a poll/survey for more than one question. Tom probably knows...

k0nkuzh0n
08-03-2014, 06:16 PM
So what's your TSP balance and how old are you?

I've heard of "a/s/l"... but this is a new one :laugh:

tsptalk
08-03-2014, 10:12 PM
Don't know if you can set up a poll/survey for more than one question. Tom probably knows...
I think you have to start a new thread for each poll.

Globalpack
08-04-2014, 06:32 AM
I don't know why the big secret. No need to be embarrassed if your balance is low and if it's high it's not like you're bragging. You know you want to share so just give it up people!:)

Maricar19
08-04-2014, 10:23 AM
Yes- A range of balance $0-$50, $50- $100,000, $100,000-$150,000 and so forth.
and a range of Number of Years - 0-5, 6-10, 11-15, etc.

Maricar19
08-04-2014, 10:25 AM
28.5 years, Between $370K-$400K
Spouse is 20 Yrs., between $200-$230

Lindoug
08-04-2014, 10:28 AM
$550,000-$600,000, 20-25 years

Frixxxx
08-04-2014, 03:34 PM
21 years
$350000

But 8 years are active duty time (no contributions/match)

I have other (private sector) 401Ks

Globalpack
08-04-2014, 06:12 PM
Thanks Maricar19, Lindoug and Frixxxx!

You guys have some serious cash!:)

Frixxxx
08-04-2014, 06:22 PM
Thanks Maricar19, Lindoug and Frixxxx!

You guys have some serious cash!:)
It's perspective, I'm always feeling behind.......It's not what you have, It's what you set your goals to achieve. I could have a LOT less if it wasn't for the great people here and TSPTalk!

Maricar19
08-04-2014, 09:22 PM
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.

PessOptimist
08-04-2014, 10:15 PM
15% a year. Excluding contributions. Show me who can get that for me and sign me up. I mean every year since 1997.

Bullitt
08-05-2014, 08:51 AM
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.

vafunkie
08-05-2014, 10:09 AM
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? :)

scaredstiff
08-06-2014, 08:10 AM
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.

Blarney
08-06-2014, 09:31 AM
54 with 29 years of service. Current TSP $335,000. Took quite a haircut ten years ago in a divorce. OUCH.

WorkFE
08-06-2014, 09:44 AM
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.:D

You all seem to be doing quite well and on track.

fisherhouse
08-06-2014, 10:19 AM
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.

bjean
08-06-2014, 12:05 PM
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.:sick:

alexreb
08-06-2014, 12:31 PM
54 with 21 yrs, $450k tsp.

tom1tom1
08-06-2014, 12:35 PM
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.

weatherweenie
08-06-2014, 01:00 PM
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.

It doesn't mean much, but I think it is complete BULLSHIT that our active military doesn't get matching contributions in TSP.

Holden_Caufield
08-06-2014, 03:11 PM
33 years,12.5 years of service,316K balance.

RazorCat
08-06-2014, 03:45 PM
29.5 years with DOJ (LEO Retired at 56 on 12/31/13)
604K Balance at retirement.
200K moved to an IRA at retirement that's invested with a company I've invested with for years. Permanent income stream at 12% annual rate paid monthly.
The remainder is still in TSP making money with I_T. I attribute a great deal of my success to following Tom and I_T on Tsptalk for many years now. Now better place to be if you have money in TSP. Looks like everyone is doing well. Stay the course. It's worth it.
And I agree with weatherweenie. There is no reason why the great men and women in our military shouldn't be receiving matching funds.

uscfanhawaii
08-06-2014, 04:41 PM
It doesn't mean much, but I think it is complete BULLSHIT that our active military doesn't get matching contributions in TSP.

60 yrs old, 30 years in FERS/TSP, TSP balance 800K. 250K of that is from matching funds (and growth on those funds)!

The matching funds really adds up over time! Never go below 5% contribution, so you never lose out on any matching funds. And YES, YES, YES.......Military should get matching too!! What's up with that!?! :blink:

fisherhouse
08-06-2014, 05:14 PM
I believe in 2006 Congress did start looking into matching contributions for military. They thought it would help with retention. However, I think the final report stated that matching contributions would not be cost effective in regards to boosting retention.

RealMoneyIssues
08-06-2014, 08:44 PM
This was discussed here, but dont remember the thread.
Retirement annuity = no matching

Army did test, no affect on recruitment or retention

Won't ever happen UNLESS the annuity goes away.

I would rather have the annuity, its not based on the stock market ;-)

burrocrat
08-06-2014, 10:21 PM
not to discount the sacrifice of time and commitment and risk and sometimes injury and death of any soul who committed to serve and defend our great nation by contributing their personal effort to a mission larger than any one of us, but i think the logic behind tsp match goes something like this when the policy makers and beancounters put their heads together:

service members can: retire after 20 years of service and begin drawing a pension for the rest of their lives. this can theoretically be at an age of 38 for some. they also have lifetime medical care built into that retirement package. they also qualify for veteren's preference in hiring decisions which can and does for many lead to a second satisfying career serving the mission as a .gov civilian (including tsp match and an additional annuity). also things like housing allowances, discounted shopping opportunities, risk pay, tax free income while serving abroad, etc. help sweeten the pot. at great cost for some if not many, no doubt. but there is great financial and personal and moral value to be gained by serving. it adds up.

a person can possibly gain a military pension, a civilian pension, participate in tsp some of the time with 5% match, earn social security benefits after active duty career, utilize discounted opportunities not available to the general public, and have private investments outside of that to shore up their safety net,

not too bad a deal as it exists now, without the match for service members. and extra tsp match on top just does not make fiscal sense to the actuaries or the dogs they work for when the big broken budget picture is taken into consideration.

that's how it appears to me anyways. i may not be smarter than most, but i'm no dumber than your average working taxpayer. military match does not pencil out from the perspective of the softies who pay most of the bills. that dog don't hunt.

Soupguy
08-06-2014, 11:27 PM
5.5 years in service so far. My current balance is approximately 103,000, of that approximately 57,000 are my personal contributions. The rest is the match and earnings. I was very lucky to come in and start pouring money into the C/S funds after they crashed in 2009. The balance definitely isn't growing as much as it did the past few years but Im able to max my contributions this year and going forward. Im a LEO and can retire in 14 years. The G will kick me out in 17 due to mandatory age.

Im hoping I will be over 650,000 at retirement but I seriously doubt Ill be anywhere close.

Maricar19
08-13-2014, 05:15 AM
I read an article that said you should have ten times your annual salary saved by retirement. I don't see that happening personally and was wondering how the folks here compare.

It may also serve as a good motivation tool to save more.

So what's your TSP balance and how old are you?

Me, Im 44 and have $148K.

I guess your statement is partially true, depending on whether you are using your starting salary as basis. When I started with TSP, my starting salary was $30- $32 thou then. And my TSP is 10x that. However, my salary has gone up since then. And I am nowhere near the 10x, not even 4x.

Unmanned
08-13-2014, 10:18 AM
Age 45 with 16 years of service. TSP of 250K averaging just over 12% annually. Started with just a 5% contribution (started way too low) and have worked my way up to @17% and hope to max out in the next few years. Personal goal is to surpass the 7 figure mark by retirement.

weatherweenie
08-13-2014, 10:27 AM
service members can: retire after 20 years of service and begin drawing a pension for the rest of their lives. this can theoretically be at an age of 38 for some. they also have lifetime medical care built into that retirement package. they also qualify for veteren's preference in hiring decisions which can and does for many lead to a second satisfying career serving the mission as a .gov civilian (including tsp match and an additional annuity). also things like housing allowances, discounted shopping opportunities, risk pay, tax free income while serving abroad, etc. help sweeten the pot. at great cost for some if not many, no doubt. but there is great financial and personal and moral value to be gained by serving. it adds up.


There are other government jobs with similar benefits that receive matching contributions. Air Traffic Controllers are one example. Plus, Air Traffic Controllers, Firefighters, Law Enforcement Officers, Capitol Police, Supreme Court Police, or Nuclear Materials Couriers annuity is computed at 1.7% for their first 20 years of service. That's a HUGE added benefit.

ripper
08-13-2014, 11:03 AM
59 y/o, 29 yrs service. Current balance $656k. I don't have a very high salary and have always contributed just 5%. I lost about 1/3 of my TSP in a divorce 15 yrs ago. :(
I've always contributed the maximum to my IRA since it first became available and have had a better rate of return on my IRA than my TSP, due primarily to the IFT limits.

Frixxxx
08-13-2014, 11:05 AM
I've always contributed the maximum to my IRA since it first became available and have had a better rate of return on my IRA than my TSP.
Did you manage your TSP or go with a set it and forget it approach?

ripper
08-13-2014, 11:38 AM
Did you manage your TSP or go with a set it and forget it approach?

I've always managed it, although my transfers were very infrequent pre-internet.
I made some terrible choices back then. For a few years, I would move to the best performing fund for the year when I received my annual TSP statement. That fund usually was the poorest performing one the following year.
I was among the first FERS employees in 1984. I believe there were just three fund options then - G, F and C.
My returns increased significantly when I found TSP Talk. :)

Globalpack
08-13-2014, 05:05 PM
250K at 45 you are doing phenomenal!

7 figures by retirement sounds like a reasonable figure. Good for you.

thenewguy23
08-14-2014, 12:00 PM
18 months full time and tsp at 6400

Frixxxx
08-14-2014, 12:03 PM
18 months full time and tsp at 6400
Been there done that....retirement is a destination based on execution of goals. You are truly on your way!

I was there, now I'm here....

thenewguy23
08-14-2014, 12:16 PM
What advice would you give to a young guy just starting off

tsptalk
08-14-2014, 12:44 PM
What advice would you give to a young guy just starting off
Getting started early is the main thing, so you're off to a good start. If you're not maxing out your contributions yet, you can get their by adding a percent each time you get any kind of COLA raise. Helps from feeling the pain.

Get aggressive with your allocation whether timing the market or going buy and hold. Although friends don't let friends buy and hold. :)

Good luck!

thenewguy23
08-14-2014, 12:50 PM
Yeah right now I'm at 10 % but next month I will move it up to 15%

Frixxxx
08-14-2014, 12:51 PM
What advice would you give to a young guy just starting off

Simplistic - Budget, Plan (set goals), execute

Seeing where you are now (budget)
Seeing your NEEDS then wants (plan)
Meeting your future with minimal unknowns (execute)

If at anytime one of these three changes, you must review the affect on all actions. These could be static or dynamic, but what's in each of those is yours, you own them.

When these three steps are followed, you are adjusting to risk continuously.

Your next question will probably be unique to each of these, i.e do I use software (if so, which one) to budget or just write it down? Or, do I save for a house or just live in an apartment? Or do I retire here or look somewhere else?

Everything builds on where you are and where you want to go!

thenewguy23
08-14-2014, 01:15 PM
I just want to live comfortable with not worrying about money and is it bad to buy and hold

Frixxxx
08-14-2014, 01:55 PM
I just want to live comfortable with not worrying about money and is it bad to buy and hold

But see, that's the fun part. What is comfortable to you is unique to you.

You're choices are paramount to the map your needs/wants to create and ensure you have enough to support those in the future:

For example: Let's say you never want to own your dwelling. And live in the identical spot 30 years from now.
2014 Rent: $1000/month
2034 Rent: $1485/month (based in 2%/yr inflation) there are a few other factors

So now, you can set your 2034, budget with that number. (planning)

That sets your execution in the direction you need to meet the new budget.

Buy and hold? Only in stocks that pay good dividends.

thenewguy23
08-14-2014, 03:09 PM
So my tsp I should be more active and I bought my home in 2012 I am currently try to go from a 30 to a 15 year mortgage because my goal is to pay it off in 10 years

Frixxxx
08-14-2014, 04:17 PM
So my tsp I should be more active and I bought my home in 2012 I am currently try to go from a 30 to a 15 year mortgage because my goal is to pay it off in 10 years

Good for you, change your plan, adjust the budget......nice!

thenewguy23
08-14-2014, 04:19 PM
Thanks for the advice

tsptalk
08-14-2014, 05:18 PM
So my tsp I should be more active and I bought my home in 2012 I am currently try to go from a 30 to a 15 year mortgage because my goal is to pay it off in 10 years
I'll throw something out there that I read by financial planner Rick Edelman (sp?) years ago...

If you are disciplined, and that is a must, and rates are low, go with the longest mortgage possible and put the difference between what you would be paying with a 15 year mortage, and what you are paying in a 30 year mortgage, into a stock fund. The theory being a mortgage is the cheapest money you can borrow, and if you think that you can obtain a return in the market higher than the interest rate you are paying on your mortgage, then it's a "plus" game.

Your mortgage deduction will be higher, and if you put it in a tax deferred IRA, it reduces your taxes that much more.

But if you go buying cars and boats with the money, it's a losing proposition.

Something to consider.

Forcefed
08-15-2014, 08:15 AM
40 years old, $250k in TSP. Some other retirement funds (IRAs, etc). Basically max contribution at this point, but didn't max my whole career (though always made sure to get full matching).

FF4

elcariso510
08-15-2014, 01:48 PM
31 years old with 4.5 years of service. 30k in tsp and currently contributing about 20% between my contributions and a loan repayment. I feel like a got a late start to my retirement savings so I'm trying to play catch up!

Boghie
08-16-2014, 12:52 PM
Age: 50
Balance: $340K
Investing: Did not start till I was about 32 (What a waste, I would not have to contribute a dime if I started earlier)
Expected Balance at age 65 (using Quicken and DinkyTown.Net):

Age: 65
Expected Return: 8% - Done better, but being conservative and considering I will be more conservative at age 60 or so
Expected Inflation: 3% - For quite some time now it has been in the 2's. That is very nice...
Expected Balance: $1.4 mil - $1.5 mil
Expected Annual Withdraw (20 years): $75K
Expected Annual Withdraw (30 years): $60K


However, unlike my retired military friends, I will have to pay for my medical insurance and I will only receive a pension from age 65 onward (if that is when I retire) and I do not receive commissary privileges nor VA loans and some other niceties. However, I did get a good match and I do not have to hope that a future politician will honor promises of past politicians. Personally, knowing what I know now, if I were a young military dude I would much prefer a matching TSP to the pension. It would transfer for those who get out before a pension, it would not be in view of politicians seeking cash, and I can watch my assets rather than having them slammed into the G Fund. Just my two cents.

Boghie
08-16-2014, 01:04 PM
31 years old with 4.5 years of service. 30k in tsp and currently contributing about 20% between my contributions and a loan repayment. I feel like a got a late start to my retirement savings so I'm trying to play catch up!

Dude, (or Dudette;)),

At age 32 I had a couple of thousand all in the G Fund and not contributing a dime. Yowser. You are doing well. Just don't stick it in the G/F or anything earlier than the L2040 unless we are crashing (and then only move to safety if you move before the crash - you don't want to lock in losses). If you sit in the G Fund you will get another Social Security check when you retire, the F Fund will bump it up a little bit. Those funds set you up for the Alpo Meal Deal Retirement Plan. Also, don't count on future politicians honoring promises of past politicians. You are at an age that you should not care if you get a pension or Social Security. Just consider it either lost money or your tip money at retirement.

Just guessing - based on your numbers - but you will be able to retire on about double your current gross income. Keep investing as you are but only in C/S/I while you are young. If your numbers include a timeframe of minimal or no investment than you will be enjoying your golden years with a Winnebago and a boat with a captain and good scotch. Yummy...

Finally, get into this sites AutoTracker. Not for the smack and competition - unless that is your cup of tea. But for an understanding of how well your account is doing without the pollution of your contributions. At your age and account balance those 20% contributions will dramatically skew what you think your performance it. You should be shooting for 8% - 12% per year. The S&P500 will get you there. That is the C Fund...

seven
08-21-2014, 03:43 PM
I'm 38 and have about $70k so far, but I've only been in 3.5yrs. I also have an IRA.

elcariso510
08-21-2014, 06:59 PM
Thank you Boghie! I like the sound of a winnebago and boat! I'll look into the auto tracker, I haven't had a chance to play around with it yet

law87
08-21-2014, 07:55 PM
27 and $38k aiming for 40 by end of years...
I also own a house with 15 years mortgage @2.125% planning to use as a money maker after I retire from the military, or sell for a profit.

I worried about my financial futures a lot, so much that my psychologist say its not normal. I plan on retiring when I am done with my military service.

InsaneZane1
08-22-2014, 01:09 AM
First, I want to say thanks to Tom for that great idea by Rick Edelman.

To stay on topic, I'm currently age 40 and have just under $89K in my account. I'm pretty aggressive with my account, and even the 10-year historical return rates on the TSP site will show that it's possible to average 15-20% per year - even in bear market years. I'm actually not a fan of TSP, namely because the lag time required for IFTs and because of the 2 IFT/month limit. If it wasn't for agency matching, I wouldn't add a penny to my account and would instead put it in my Ameritrade account. Alas, I contribute 6% of my pay - just a little more than the amount needed to get the max amount of "free" money added in by Uncle Sam.

I'm hoping to have $100K in my account by the end of this year, and at least $2M - if not $3M - by the time I retire.

Advice for newer employees: high interest will get you a MUCH higher account balance over the long run than large, regular contributions with a lower interest yield. If you really want to be well off when you retire, it can definitely be done. But you have to do some homework and actively manage your account yourself. Don't just stick your money in the G Fund (which typically will barely even keep up with inflation, if at all), and don't expect the Lifecycle funds to do all the work for you. When the C, S, and I funds go into bear markets, your account balance will go down with them even though you're in the L Funds.

law87
08-22-2014, 03:51 AM
59 y/o, 29 yrs service. Current balance $656k. I don't have a very high salary and have always contributed just 5%. I lost about 1/3 of my TSP in a divorce 15 yrs ago. :(
I've always contributed the maximum to my IRA since it first became available and have had a better rate of return on my IRA than my TSP, due primarily to the IFT limits.


God that sucks, there should be a rule for that, like... not take any.

law87
08-22-2014, 04:04 AM
I am very very surprised that some of you guys been saving for 20+ years and have not been millionare or close to there. Which make me think if I am saving enough :?

Frixxxx
08-22-2014, 08:14 AM
I am very very surprised that some of you guys been saving for 20+ years and have not been millionare or close to there. Which make me think if I am saving enough :?
Remember, 2008 took 40-50% of some people's money.....recovery has been long and hard. There were also limits on amounts and whten TSP started, I think they had G, F, and C to invest.

Also, goals. Some people are CSRS, some are LEOs (they have a shorter career duration) and most don't start until their 30's because of life changes. The longer you are in the game makes it easier, but the amount being set at the finish line is very unique to the individual.

weatherweenie
08-22-2014, 08:43 AM
I am very very surprised that some of you guys been saving for 20+ years and have not been millionare or close to there. Which make me think if I am saving enough :?
I didn't start maxing out my contributions until 5 or so years ago. I currently have worked 23 years, and started out as a gs5 making $17,000.

Like frixxxx said, the buy and holders had a 50% haircut in 2008. There was also the tech bubble burst in 2000.

Did you see the report that something like 36% of Americans have ZERO saved for retirement?

InsaneZane1
08-22-2014, 10:16 AM
I started my dual-status job in 2000. I've taken out a few loans against mine over the years, plus I paid little attention to my TSP account for quite some time too. Since 2006, I've had EOY numbers of +9.6%, -28.3%, +38.7%, -32.5%, +1.8%, +21.6% and +24.3%. Get rid of deductions for loans and put the negative/flat years more inline with historical fund performances and I'm sure I could have easily had $200K+ in my account already.

The things we have to learn the hard way though.

WorkFE
08-22-2014, 10:28 AM
Did you see the report that something like 36% of Americans have ZERO saved for retirement?

Since such a big chunk of that % is of people ages 18-29 it does not surprise me. I was not much different, there were/are so many other priorities/desires at that age. Retirement is pretty far down the list. I did not consider it a top priority unit I turned 40. I am now 50 with $440K of earnings potential savings. Ten more years and I'm done. Although I won't hit a million I believe I will live comfortably.

What does concern me is the 26% 50-64 with no retirement savings. The clock is ticking and they left some good earnings years on the table especially the right side of that scale.

InsaneZane1
08-22-2014, 10:36 AM
I am now 50 with $440K of earnings potential savings. Ten more years and I'm done. Although I won't hit a million I believe I will live comfortably.

Never say never. With 10 years left and that account balance, you can easily hit $1M by the time you hit 60. Even a modest 10% annual yield will get your balance to $880K - and that's even if you never invest another penny starting now. A 15% annual yield will put you in the $1.7M range with $0 additional invested. You could possibly even push it closer to $3M if you can average 20%/yr.

Boghie
08-22-2014, 10:51 AM
I am very very surprised that some of you guys been saving for 20+ years and have not been millionare or close to there. Which make me think if I am saving enough :?

Our initial salaries at age 20 or so were small or smallish - but they should get better as we gain Gubmint Experience:-}. Also, the indestructible who like to drink beer tend not to save for anything forty five years off. I didn't start saving for retirement till age 34 or so. And, time is money. If your salary at age 30 is $30K and you start contributing 10% (for 15% including match) to TSP and you attain a 10% return than your balance should be around $350K at age 50. You will be well on your way.

To have a million in a similar scenario you would have to contribute $15K/year (including match and increasing by inflation) for the twenty years with a 10% return. That would be tough on a starting salary less than say $65K or so (and even then :-}, yowser). Again, time is money. The same guy contributing $3,000 with a match of $1,500 starting at age 24 would be worth about $700K at age 50 and on his/her way to $3M at age 65.

Boghie
08-22-2014, 11:08 AM
Never say never. With 10 years left and that account balance, you can easily hit $1M by the time you hit 60. Even a modest 10% annual yield will get your balance to $880K - and that's even if you never invest another penny starting now. A 15% annual yield will put you in the $1.7M range with $0 additional invested. You could possibly even push it closer to $3M if you can average 20%/yr.

InsaneZane,

If someone is retiring in 10 years than they should not be investing in a pure equities allocation. The S&P500 has an average annual return of about 10% with a risk/variance of 17%. That means that 2/3rds of the time your return will be between -7% and +27% centering on 10%. But equity investing has 'fat tails', meaning it doesn't respect the tiny odds of a normal bell curve extreme failure. In 2008/9 the S&P500 lost 57% of its value. Someone sitting with $700K at age 60 in 2008/9 would have been sitting at something like $350K at age 61 if they were buy and holders. Would they have stayed invested and made it back by age 66 or would they have bailed after losing $100K (bailing out after losing 15% is probably the best case since there were DAYS the market lost 8%) or so and never got back in? Look in the AT or in any real study of the situation. Folks bailed in didn't get back in.

Losing 15% at age 60 hurts a lot more than losing 15% at age 40.

So, yes, the S&P will return 10%/11% but you need to risk adjust your allocation. This is not gambling and returns are not 'interest' that can be counted on. If you can sleep through two weeks or a month of 2008 style losses than you can adjust or let her ride. If you find your self down 14% in two days you will probably panic out if your golden years are across the doorstep.

WorkFE
08-22-2014, 12:37 PM
I have several calculated goals. At no time have I ever used 15% in the various scenarios. I generally work in the 3-8% range. The goal amount remains unchanged, the age to obtain is what moves.

law87
08-23-2014, 07:30 PM
I have several calculated goals. At no time have I ever used 15% in the various scenarios. I generally work in the 3-8% range. The goal amount remains unchanged, the age to obtain is what moves.


I aimed for 10% because I am using IT system, not that I am advertising his premiums but it hasnt failed me yet. $200 a year for subscription is well worth it IMHO. Just when you think you know the market, it turn around and show u something else I'll let I_T worried about the calculation.

texas
08-25-2014, 07:26 AM
I read an article that said you should have ten times your annual salary saved by retirement. I don't see that happening personally and was wondering how the folks here compare.

It may also serve as a good motivation tool to save more.

So what's your TSP balance and how old are you?

Me, Im 44 and have $148K.




Hi, I'm 57 with 27 almost 28 years. I am 6 years away from retirement. I have 1,000,000 + in the TSP. That came with a lot of saving the max- ALL THE TIME. Good luck.

Frixxxx
08-25-2014, 08:46 AM
Hi, I'm 57 with 27 almost 28 years. I am 6 years away from retirement. I have 1,000,000 + in the TSP. That came with a lot of saving the max- ALL THE TIME. Good luck.

Would love to know more on how you got to that 7 figure number. Especially knowing the limitations you experienced in the beginning of TSP. Thanks for posting, and gratz on such an achievement.

texas
08-25-2014, 01:00 PM
Would love to know more on how you got to that 7 figure number. Especially knowing the limitations you experienced in the beginning of TSP. Thanks for posting, and gratz on such an achievement.

Hi, Thanks. I always put away the maximum and only briefly moved stuff around. I'm a buy and hold- equities. I'm at a point where I'll move some things around but still keep equities for growth.

Frixxxx
08-25-2014, 01:04 PM
Hi, Thanks. I always put away the maximum and only briefly moved stuff around. I'm a buy and hold- equities. I'm at a point where I'll move some things around but still keep equities for growth.

How did you fair through 2008? Were you very active then?

texas
08-25-2014, 01:10 PM
How did you fair through 2008? Were you very active then?

I'm not as savy as the contributors on this site. I watched it go down probably 30 something + %. - continued buying (cheaply) as it was down and didn't panic too much. :-)

dpmp
08-27-2014, 05:08 PM
I'm 54, with almost 29 years of federal service. My TSP balance is $410K. I did not start saving until 33 yo after getting married. I contributed 5% (maxed out) when first offered, and raised to 15% of salary as soon as they offered it. The bulk of the gain was after the tech bust and I had a good run until 2008. 2008 put a 20K dent in my TSP; I bailed out to G fund after Lehman Bros went bust, balance 260K. But I also stayed out of the stock market until 2011, and only messed around with it. Not a full time investor. Now, I really wish that I had joined the recovery as soon as March 2009 though.

Summer 2012, I took a 50K loan to buy a condo in Florida. Balance went down to 300K. But have accumulated to what I have now. I have reduced my contribution from 15% back down to 5% for about a year. No plan to add more savings to it since I plan to retire in 4 yrs, anymore won't make much difference. I figure in another 4 yrs, I could accumulate another 100K (too ambitious, I'd say).

InsaneZane1
08-27-2014, 11:57 PM
My TSP balance is $410K...I have reduced my contribution from 15% back down to 5% for about a year. No plan to add more savings to it since I plan to retire in 4 yrs, anymore won't make much difference. I figure in another 4 yrs, I could accumulate another 100K (too ambitious, I'd say).

I'll give you some numbers that might make it sound like that extra $100K will be easier to get to. $510K/410K = 24% total gain. Without another dime of contributions and factoring in compounding interest, that comes out to about a 5.5% average annual yield (1/4th root of 24). If you add in personal/agency contributions over the course of those years, the required average yield will be even lower. But even without that data, you can likely get that by staying 100% F until you retire. The F Fund is up almost 6% from last year, and it usually does even better when stocks are in bear market conditions. With bull market or even range-bound conditions, you can even get that yield higher by moving quickly in and out of the C/S/I Funds when they start to climb after consolidation periods.

Boghie
08-28-2014, 11:26 PM
Dpmp,

While I 'liked' the above, the thought of jumping quickly between stock and bond funds is market timing... I would recommend an allocation approach. And, I would recommend talking to a financial adviser at this point. Is market timing your cup of tea. Where is my favorite market timer - 12%AYear (I actually value his/her opinion, but it seems that 2008 did em in)...

I was actually in positive territory through the summer of 2008 - then I jumped in!!! The timing just felt right!!! Uh nope, the market timing gods were not in my corner.

Ron55
08-29-2014, 06:33 PM
Hi Guys,

Thought I would throw in my two cents worth. I'm 58 and only started working for the government since 2006 so my TSP balance is about 245K. Before that I worked private industry and my 401K with my old employer is about 600k. When I first started out saving I thought I was doing good by contributing up to the match plus 2%. As I got older (starting in my late 40s) I thought 10% contribution was going to be more than enough. Now that I can see the distant light flickering in the tunnel (i.e. the big R) I max out my contributions, which also includes the catch up portion. My goal is to work maybe another 8-9 years.

InsaneZane1
08-29-2014, 06:47 PM
I'm 58 and only started working for the government since 2006 so my TSP balance is about 245K. Before that I worked private industry and my 401K with my old employer is about 600k. When I first started out saving I thought I was doing good by contributing up to the match plus 2%. As I got older (starting in my late 40s) I thought 10% contribution was going to be more than enough. Now that I can see the distant light flickering in the tunnel (i.e. the big R) I max out my contributions, which also includes the catch up portion. My goal is to work maybe another 8-9 years.

Do you have a goal balance for when you retire yet? $845K is definitely a respectable amount.

Ron55
09-03-2014, 12:27 AM
If I work another 8-9 years I'm hoping to reach double the savings ~ 1.6 million.

MrBowl
09-03-2014, 12:46 PM
I'm 46 and only have around $80,000 in my TSP act :sick:. I will work well into my 70s. I'll be aggressive with my investments to try to catch up to where I think I should be.

I'm an example of what not to do with your retirement acct. When I was single back in the late 1990s I had extra money and started an online acct and did very well. Fast Fwd to 2002 or so and the internet bubble bust had me about a year's salary in debt. I've been chasing the debt ever since. I almost got out of debt by 2006, but then came an expensive wedding, purchasing a house in 2007 in CA (DOH!!!), and a baby. CA is expensive and you have little chance of getting out of debt once you're in deep, outside of a windfall like an inheretence, lotto, or just dedicating yourself to extra jobs for a stretch. I have twice taken disbursements for a total of $83,000 to try and manage the debt. It didn't work - it only shifted debt to an almost equal amount of new taxes. I'm also paying off two TSP loans. One loan was for $50,000 to buy that 2007 home, which had the value cut in half by the time I lost it in 2011. The other was was to manage debt, again.

Its just another version of the same lesson we've all heard - ALWAYS spend less than you have and save more than you think you can. Don't act like your retirement acct is a checking acct. It's ok to rent or to go without some of the things you want. Oh, and its not a bad idea to marry into money.

Frixxxx
09-03-2014, 03:15 PM
Oh, and its not a bad idea to marry into money.

First marriage is for love, second marriage is for money, third marriage is for suckers. :laugh: That was a joke for all you multi-marriage people (me included)!

nnuut
09-03-2014, 03:35 PM
Boy am I glad I was CSRS! My TSP is our emergency fund.

TalkaRound
09-23-2014, 08:12 PM
I'm new to TSP Talk. I'm 51 years old and I've been investing in the TSP for 27 years. I currently have $904,000. I invested aggressively the entire 27 years which includes putting the max amount in my TSP on a yearly basis. I also contribute the max catch up funds, which began when I reached the age of 50. During the 27 years I've been in the TSP I can remember the market taking a dive 2 or 3 times. During that time I NEVER jumped into the G fund. I remained pretty much in the C, S and I funds. I'm going to retire when I am 59. My goal is to hit the 2 million dollar mark before I retire.

Intrepid_Timer
09-23-2014, 09:43 PM
I'm new to TSP Talk. I'm 51 years old and I've been investing in the TSP for 27 years. I currently have $904,000. I invested aggressively the entire 27 years which includes putting the max amount in my TSP on a yearly basis. I also contribute the max catch up funds, which began when I reached the age of 50. During the 27 years I've been in the TSP I can remember the market taking a dive 2 or 3 times. During that time I NEVER jumped into the G fund. I remained pretty much in the C, S and I funds. I'm going to retire when I am 59. My goal is to hit the 2 million dollar mark before I retire.

Good luck. Hopefully equities don't lose 30% when you are 58. Timing is everything and those 2 dives you mentioned both came this century (14 years). This ain't the same kind of market it was when you started.

Welcome to the forum! :)

TalkaRound
09-24-2014, 07:25 PM
Intrepid Timer you are right, it is a different market from when I started. I plan to invest a little safer a couple of years before I retire, which may cause me to fall short of my goal. I will have to really keep an eye on the market around that time or a little sooner in order to try and avoid a 30% or more loss. :)

TangoMike
10-26-2014, 09:07 PM
Intrepid Timer you are right, it is a different market from when I started. I plan to invest a little safer a couple of years before I retire, which may cause me to fall short of my goal. I will have to really keep an eye on the market around that time or a little sooner in order to try and avoid a 30% or more loss. :)

i'm 54yo w/ ~28 yrs of service(3 military time) I have ~410k. I missed the 2yk beat down, sat in the g for a year and took a little bit of a beating (was 20% in C) in 2008, but got it back and more in 2010...but the damage was done; I got scared and sat 100% in G paralyzed for the next 3 years. I've occasionally gone in 5 or 10% on C fund dips, but the craziness of QE pi just spooks me; the musical chairs game will end and it will be as ugly as 2008. My goal is to punch out in 6yrs, with 600k--I just upped my contrib to 15%. I used to trade 8-12 times a month back in the day, I was one of the few that got a letter for excessive trades. Is there a thread to discuss trading strategies--end of month trading versus the first of the month...that kind of thing? The 2x/month is so limited, it can be done but it is frustrating at times. Thanks in advance!:cool:

Handballer
10-27-2014, 11:59 PM
Boy am I glad I was CSRS! My TSP is our emergency fund.
I was not. I am okay with that with that.:laugh:

berg1315
10-28-2014, 01:23 PM
I just turned 30, I have 5.5 years of service and I currently have $130,000 in my TSP. I've always been very interested in learning about personal finance, debt, and the math side of compounding. I've maxed out my TSP for the last 4 years and plan to continue to do so as long as I can. Being that I have a long future ahead of me and that I am somewhat skeptical about my pension being there or at least being as good as it is now when I retire, my goal is to be able to retire off of my TSP alone. I'm a long time lurker on TSPtalk and am very thankful for everyone who has put in the work to maintain the sight and keep the discussions active!

flybaby
10-29-2014, 06:28 PM
I’m 48… with 17 years of service. I plan to retire in 3 years, right at the 20year mark.I’ve got $305,000 in acombination of Civilian and Uniformed accounts.I did what most of us do… contribute some… but not all of the federal maximum limit… also took a loan when I was younger. Basically… everything wrong!
For the last 10 years… contributing the max. Got crushed in 2008-9 because I didn’tunderstand the market, charts, trends and sage advice.
I feel I’ve rectified most of that by joining TSP Talk. Staying informed and not getting too greedy, are the keys.But… if nothing else…. CONTRIBUTE the MAXIMUM allowed under law. Dollar cost average and get that money working.
Hoping to have as close to $500,000 when I retire, as I can… but plan on letting that money work, without using it for years.. One million fun tickets before I really need it? …. Possible.

Globalpack
10-29-2014, 07:11 PM
Thanks for sharing your saving experience.

GUCHI
10-31-2014, 10:22 AM
I'm 55 yrs old and retired 5 months ago with 35 yrs of service. Doing the math I started with NRCS/SCS on 10/1979 two years out of high school. Being 20 years old with no direction other than to live like a 20 year old I had my money in the G fund starting 9/1989. Of course if I knew what I know now things would be different. Anyway back then as it is now we never received any guidance and therefore I put in G fund and left for awhile(dumb dumb move). Fast forward 10 years (9/1999) and I'm in the C fund with $38,977. Another 5 years 9/2004 I'm spread in the C,S!and I fund with $61,438. 9/2010 I had a short stint in the L2040 and I fund with a balance of $108,204. I took out a tsp loan in 3/2011 for $50,000 to consolidate some rental properties and9/2011 I find my balance at $76,756. I know people say not to use tsp for stuff like that , but it worked like a charm for me. 9/2012 my balance rose to $105,350. 9/2013 my balance was $155,887 before loan payoff. I knew that I wanted to retire when I did and I had to pay off the tsp loan or face high penalty tax,so my wife and I went to the bank and took out a equity loan at a low rate and I payed off the balance of my loan 9/26/2013 of $25,940 this brought my tsp to $183,466. Recently my highest was $215ish but has dropped with this recent dip. I'm pretty much a buy and holder and I never had plans of using my tsp for income when I retired,just my pension. So far so good. With that thought in mind I decided to stay fully into equities long time ago and just let the compounding continue. I have talked to my broker at tdameritrade he would like me to move inot an IRA, but I have not as of yet. Retirement has been good and I added a little blip in the retirement forum. My 26 yr old son with his masters in EE ( proud papa)just started with FERC and I told him to go balls to the wall right away since he has many years to accumulate cash and time is on your side with the compounding thingy. I told him to pay himself first from the jump and you won't be sorry. Oh and one more big factor I went to the school of hard knocks and attained gs 10 status before I retired. I don't think that's too shabby for a dummy like me heehee. So you brains out there have a lot more potential,so save early and reach for the stars.

James48843
10-31-2014, 11:09 AM
FYI:

30884

tspnewbie
11-10-2014, 03:43 PM
9 years. $125,000.

Boghie
11-10-2014, 08:32 PM
What advice would you give to a young guy just starting off

You are probably beyond this in the thread, but...

When Tom says 'Get Aggressive' he means investing ALL of your assets and contributions in C/S/I. At your age and at your balance there is NO reason to have assets sitting in the G/F. For the rest of us - those who remember the FDR presidency, yuk, yuk - we should have some G/F.

PessOptimist
12-25-2014, 07:25 PM
Re-reading this from the beginning and making some comments about some of it.

10 times your annual salary. Yikes! Is that starting salary or the last yearís salary? I am doomed! Maybe not, everyoneís situation is different.

Since Iím in the xmas spirit or into the xmas spirits, I will share. I am 62 yo, have 17.5 years fed service and $400-500k in my TSP. I am currently maxing out contributions and hope to continue that until my projected retirement date in December 2017.

The subject of military TSP and matching brings mixed feelings. Old lifer says in my day all we had was savings bonds. True, I retired 30 Nov 96. I appreciated all the sentiment about matching for military but some good points are brought up about why there are none. Burrocrat makes good points but I feel the need to clarify some of them.
they also have lifetime medical care built into that retirement package True but it is not free. It is cheap. At age 65 it becomes a medicare wrap around coverage IF you buy medicare part B. This will be about a 113% increase in premiums for me last time I figured it out. Plus in most cases you are on the street at age 65 looking for a new primary care manager.
tax free income while serving abroad Just want to make sure everyone understands this is only if serving in a hostile fire zone or something like it. I did about 10 years outside the US and paid taxes on every dime of my base pay during that time.
a person can possibly gain a military pension, a civilian pension, participate in tsp some of the time with 5% match, earn social security benefits after active duty career, utilize discounted opportunities not available to the general public, and have private investments outside of that to shore up their safety net Yes, I hope it works out. The discounts are way over rated for what I want to buy. But they are there.

Someone later mentioned the VA home loan. Yes a very nice thing as getting together a down payment was not easy at the pay rates back in the day and is probably not easy now.

Commissary use is also over rated as it is not really a good deal except for a few products. IMO I suppose. The commissary is only 8 miles away but we do most of our shopping at local chains.

At 4.5 years I had 38k in TSP. At 3.5 years I had 32k.

Reading through the thread it doesnít appear I am doing that badly compared to some and better than some. Just like any sampling of anything.

Best of luck everyone.
PO

bmneveu
12-25-2014, 08:09 PM
At 4.5 years I had 38k in TSP. At 3.5 years I had 32k.

Reading through the thread it doesnít appear I am doing that badly compared to some and better than some. Just like any sampling of anything.

Best of luck everyone.
PO

Shoot, better than me! I am closing in on my 4th full year and am behind your pace by a considerable amount.

On a good note, it looks like I will end this year with 400% more $ in interest paid to me than any previous year. 2012 was my best year before this, and I should quadruple that as long as nothing crazy happens here near the end. 2014 Q4 alone has brought me double the total interest $ than all of 2012 combined so far. It's been a good year. Hopefully many more to come.

PessOptimist
12-25-2014, 08:56 PM
Shoot, better than me! I am closing in on my 4th full year and am behind your pace by a considerable amount.

On a good note, it looks like I will end this year with 400% more $ in interest paid to me than any previous year. 2012 was my best year before this, and I should quadruple that as long as nothing crazy happens here near the end. 2014 Q4 alone has brought me double the total interest $ than all of 2012 combined so far. It's been a good year. Hopefully many more to come.

Good deal on the gains and I too hope many more to come. I stated in my overlong post, everyone's situation is different. What I had going for me at the start of my .fed career was 24 years military time and that annuity. It paid PITI and some of the bills so no matter what happened I would have a roof to live under. Plus I lucked in to a .fed job that had a duty description ripped out of the AF classification manual for my specialty. Life has been good to me so far. https://www.youtube.com/watch?v=BXWvKDSwvls

Not as good as Joe Walsh's but my old Dakota does 107 if you are crazy enough to hold you foot down that long. One time experiment since at about 90 it started making funny noises and doing funny things. A brick can only take so much wind.

So back on topic, I was able to contribute a lot to TSP early on. During my first year my balance was below my accumulated contributions at one point and if I had been monitoring it closely I would probably have quit contributing. It turned out OK by me ignoring it until later years. All my best to you and thanks for your service. I am starting to get annoyed with that cliche at times but mean it sincerely.

PO

ATCJeff
12-25-2014, 10:50 PM
49 years old
27.75 years ATC
max since day 1
1.54 million in my TSP

OBGibby
12-26-2014, 08:01 AM
49 years old
27.75 years ATC
max since day 1
1.54 million in my TSP

Very impressive! An excellent example to others of what can be achieved. Can you expound on your TSP management actions (i.e., passive/active, put it on auto-pilot, used a premium service, etc.)? I'm curious to know how much of the $1.54 million balance is your employee contributions.

ATCJeff
12-26-2014, 09:28 AM
Very impressive! An excellent example to others of what can be achieved. Can you expound on your TSP management actions (i.e., passive/active, put it on auto-pilot, used a premium service, etc.)? I'm curious to know how much of the $1.54 million balance is your employee contributions.

I was very active back when we had unlimited trades. I almost always use 100S when in the market. Definitely no auto except in the early days when it was a pain to change funds and account balance was low. I use premium services to back stop my decisions. I'll have to look on a statement to see how much employee contributions. I'm sure it's north of 200K.

Boghie
12-26-2014, 11:17 AM
49 years old
27.75 years ATC
max since day 1
1.54 million in my TSP

That is why he was on my poach spreadsheet with ContrarianJeff and a few others :cheesy:. Not telling :p
But ATCJeff is no longer visible. And if I move to the paid side that dang Burro will shove me off the Ark...:toung:

bmneveu
12-26-2014, 01:47 PM
And if I move to the paid side that dang Burro will shove me off the Ark...:toung:

Me being a cheapo and a Star Wars fan, I like to refer to it as the Dark Side :cheesy:

Frixxxx
12-26-2014, 02:59 PM
49 years old
27.75 years ATC
max since day 1
1.54 million in my TSP
I have always watched you and now I know why!!!!!!

I love to hear that you maxed out day one!

I bet no one wants to hear how you sacrificed to make that happen......That's the meat of all strategies!

maui21ice
12-27-2014, 05:08 AM
Only had my TSP account 1 year so far, I'm 28 years old and have $7,400 so far after this next payday. I put in 8% right now with an agency matching 5%. I'll up it to 11% next year when I get a pay raise. Doing this on only 1 income, when wife graduates college and nails a job, I'll up mine big time.

Looking at a goal of $1 Million myself by retirement age. At least...

jeep364
01-02-2015, 04:10 PM
~38k, 100% L2050.

Have been contributing since Jan or Feb 2013. Roth TSP no match (military). Have tried maxing it out at 17,500 each year but I think the first year I think I was a little short due to processing times after changes are made (take effect only one month later).

Maricar19
01-02-2015, 04:59 PM
28.5 years, Between $370K-$400K
Spouse is 20 Yrs., between $200-$230


Update from August 2014 post:
As of 12/31/2014:
29 yrs of service, $403k; spouse has 20.5 years of service and 244k
Thanks to Intrepid and TSP Talk Plus/Sentiment

hotwings
01-02-2015, 05:22 PM
30.5 years of service in FERs. C, S and a little I pretty much the whole way using mainly a B & H strategy while contributing the max. Doing pretty well and hit my original goal about 6 mos ago. Bottom line, start early, contribute as much as you possibly can, be aggressive and don't look at your portfolio everyday.


Sent from my iPhone using Tapatalk

Itchn2retire
01-02-2015, 05:40 PM
Age: 50
Balance: $533k
Years of Fed Service: 26 years
Investment Strategy: I have been a "buy-and-hold" guy from the beginning investing in aggressive funds and maxed-out my contributions pretty much the whole time. (with a couple of exceptions early in my career) Looking to improve my returns which is how I found this forum.
Misc: I'm already eligible for retirement but will hang around for a few more years (55) then I'm DONE! It is my intent to not draw on TSP until I am 60'sh.

Related Article: Average TSP Balances and How Investors Prepared for April Market Returns : FedSmith.com (http://www.fedsmith.com/2014/05/07/average-tsp-balances-and-how-investors-prepared-for-april-market-returns/)

Regards,
Itch'n

catak
01-13-2015, 02:21 PM
Could you care to elaborate on using B & H strategy?

Itchn2retire
01-13-2015, 05:01 PM
Could you care to elaborate on using B & H strategy?

For me I would not categorize it as a "strategy". For the duration of my career I just saved as much as I could and stayed in the aggressive funds and then I let time and the magic of compounding interest take care of the rest. After going through a few heavy dips in the market I figure I should take a more active role in managing my account which is how I discovered this site.

tsptalk
01-13-2015, 05:19 PM
Perfect! Let it add up and percolate when you're young, and then get on top of it to avoid the disaster as you get older and accumulate something more substantial.

Itchn2retire
01-13-2015, 06:14 PM
Coincidentally, Here is an article on this very subject that was posted today at Fedsmith.com. So all you young whipper-snappers that are new in your careers you should save early and save often.

How to be a TSP Millionaire. How to Be a TSP Millionaire : FedSmith.com Blogs (http://blogs.fedsmith.com/2015/01/13/how-to-be-a-tsp-millionaire/)

Tennvol
01-22-2015, 08:46 AM
6.5 years of service, 39 years old, 104k in TSP. I have this site and Intrepid Timer to thank for being where I am now. I had no retirement prior to my EOD, and the first 2 years of Fed service were just minimum contributions. That changed when I found this site and got serious with thinking about future income.

Maricar19
03-22-2015, 10:04 AM
Only had my TSP account 1 year so far, I'm 28 years old and have $7,400 so far after this next payday. I put in 8% right now with an agency matching 5%. I'll up it to 11% next year when I get a pay raise. Doing this on only 1 income, when wife graduates college and nails a job, I'll up mine big time.

Looking at a goal of $1 Million myself by retirement age. At least...

Hi Maui21ice- I noticed your profile says you are from PA- whereabouts? you don't have to answer if you don't want to--just curious!
You can PM m, too.

Lakebound
03-22-2015, 10:13 AM
49 years old, 31 years of Federal service with military and Fed LE combined. Current TSP balance of 354K and working on getting to 500K in the next two years.

I will retire at 50 next year no matter what my balance is.

Frank

Sent from my XT907 using Tapatalk

Maricar19
03-22-2015, 10:33 AM
49 years old, 31 years of Federal service with military and Fed LE combined. Current TSP balance of 354K and working on getting to 500K in the next two years.

I will retire at 50 next year no matter what my balance is.

Frank

Sent from my XT907 using Tapatalk
And Frank, with the rate you are going, in most probability, you'll exceed your $500k goal.
And as a LEO retiree, you can work an unlimited $amount without affecting your SRS until you reach your MRA, so more 401K instead of TSP...

sushicam
12-27-2015, 07:32 PM
45 years old.
20 years of service.
$465K

Planning to crack the $3M mark by retirement in 20 more years.

Started out contributing 5%, but after my first year of working I was able to afford to max-out my contributions each year and have been doing so ever since.

TwoYrs2Go
12-31-2015, 08:26 PM
49 yo, 580k balance. Retired two years ago with 500k and started withdrawing under the life expectancy rule to avoid the 10% penalty. Hope to have 800k to 1m by the time I am 59 and a half. Also went back to work a few months ago due to boredom.

The 2008 drop didn't hurt me as much as it could have as I left it alone gained it all back and more by 2010. I'd did leave me skittish which caused me to miss out on gains.

OBGibby
12-31-2015, 08:39 PM
49 yo, 580k balance. Retired two years ago with 500k and started withdrawing under the life expectancy rule to avoid the 10% penalty. Hope to have 800k to 1m by the time I am 59 and a half. Also went back to work a few months ago due to boredom.

The 2008 drop didn't hurt me as much as it could have as I left it alone gained it all back and more by 2010. I'd did leave me skittish which caused me to miss out on gains.

Joined the forum in July 2011 and this is your first post - a good one at that!

Christopher
01-03-2016, 12:42 AM
My wife (JD) began her Fed career in 1985 and is a GS-14; I (Chris) began my Fed career in 1989 and am a GS-12. She turned 49 and i turned 47 during December of 2015. Here's our short story:

At the end of 2003, we were invested 100% in G with balances of $7,464.40 and $5,120.29, respectively - only Uncle Sam was contributing to our TSP accounts. All of that changed in early 2004: just prior, my best friend (who worked in commercial banking) kicked me in the derriere when, during a discussion about investing, I told him my wife and I hadn't contributed anything to our Fed "401K accounts". :embarrest: SO ... LOL ... I kick started our contributing to both our TSP accounts and began managing them both, though ignorantly moving $ between funds at first because I lacked any real knowledge. I stumbled across TSPTalk not long after, but didn't become a member for a while - I just stood in the shadows and read a LOT of posts, researched cause and effect between market forces, scrutinized member methodologies, and tried to make some sense of all the chatter and banter - but began actively investing ("trading") the funds in our TSP accounts with my new insights.

Over the years, we've contributed between 5% and 10% to our accounts - I recall reducing the 10% to 5% to aggressively pay off the mortgage Christmas of 2005 and then again as markets began crashing during the Great Recession (where we lost a little better than 5% - mild compared to others we knew who were buy and hold types. We're still contributing 5% now). I'm honored to be among those notorious day traders who received the TSP board's "ultimatum" letter back in the day, and I don't regret a day of aggressively managing our funds during that time - it helped me to help US catch up some to where our TSP accounts would have been if we had contributed prior to 2004. Our combined balance hit $300K last quarter, and we're OK with that considering our "late bloomer" statuses. :smile:

My TSP slacker status regrets in 2015: 1) not consistently watching the markets, and 2) not consistently applying my own investing rules when I DO. I hope to be more intentional in 2016 and onward. :rolleyes:

Raymann1
01-06-2016, 04:28 PM
I expect to retire the beginning of Jan next year. I will be 62.5 years old, with 21 years of Fed Service I am retired USAF officer as well. My TSP balance is 370K. My goal is over 400K by the end of 2016. My wife is also a DoD employee with 34 years in Service. She is 60 and has over 535K in her TSP. She plans on retiring when she is 62. (She wants me to wait for her...which would put me at 63.5 years old) our combined total is 905K....our goal is 1 mil. We recently moved everything into the G fund. Our monthly investments are going into C.

Kjazzinphx
02-19-2016, 09:08 AM
I am a soon to be former postal worker and have contributed for 31 years. My balance is $700,000. I always put in the max allowed. As they allowed more, I contributed more. When they lifted the ceiling altogether I raised it to 16% and have contributed that much for years. Early years mostly in C, but when L Funds came around I moved 70% to L and 30% in C. I didn't try to time the markets except once. Had a feeling the market was going to tank and was losing money fast so lost a lot less than those that stayed the course and got back in at the right time. Just dumb luck. Now fully in L Income because I retire in 10 days!

Lakebound
02-19-2016, 11:16 AM
I am a soon to be former postal worker and have contributed for 31 years. My balance is $700,000. I always put in the max allowed. As they allowed more, I contributed more. When they lifted the ceiling altogether I raised it to 16% and have contributed that much for years. Early years mostly in C, but when L Funds came around I moved 70% to L and 30% in C. I didn't try to time the markets except once. Had a feeling the market was going to tank and was losing money fast so lost a lot less than those that stayed the course and got back in at the right time. Just dumb luck. Now fully in L Income because I retire in 10 days!

Congratulations on both your retirement and your balance. That number is something to be proud of and should provide you and your family with a nice income stream for the remainder of your life.

Frank

burrocrat
02-19-2016, 11:28 AM
I am a soon to be former postal worker and have contributed for 31 years. My balance is $700,000. I always put in the max allowed. As they allowed more, I contributed more. When they lifted the ceiling altogether I raised it to 16% and have contributed that much for years. Early years mostly in C, but when L Funds came around I moved 70% to L and 30% in C. I didn't try to time the markets except once. Had a feeling the market was going to tank and was losing money fast so lost a lot less than those that stayed the course and got back in at the right time. Just dumb luck. Now fully in L Income because I retire in 10 days!

are you single?

Kjazzinphx
02-19-2016, 04:05 PM
Thank you very much Frank! Just one more week to go!

Kjazzinphx
02-19-2016, 04:09 PM
are you single?
LOL! Technically I suppose I am, but no, my partner and I met at the post office 31 years ago and have been together 25 years. He has his own TSP also and has 32 years, balance $400,000. He has another 4 years to reach retirement eligibility.
Guess I was the smarter TSP investor in the family!! ;)

burrocrat
02-19-2016, 05:04 PM
LOL! Technically I suppose I am, but no, my partner and I met at the post office 31 years ago and have been together 25 years. He has his own TSP also and has 32 years, balance $400,000. He has another 4 years to reach retirement eligibility.
Guess I was the smarter TSP investor in the family!! ;)

well, do you folks think you will be hiring a pool boy anytime soon then?

congrats on your retirement (both).

Kjazzinphx
02-19-2016, 06:30 PM
well, do you folks think you will be hiring a pool boy anytime soon then?

congrats on your retirement (both).

Ha! Are you interviewing for the job?
No. But maybe someone to cut the grass when it's 110 degrees.

Kjazzinphx
02-19-2016, 06:33 PM
I expect to retire the beginning of Jan next year. I will be 62.5 years old, with 21 years of Fed Service I am retired USAF officer as well. My TSP balance is 370K. My goal is over 400K by the end of 2016. My wife is also a DoD employee with 34 years in Service. She is 60 and has over 535K in her TSP. She plans on retiring when she is 62. (She wants me to wait for her...which would put me at 63.5 years old) our combined total is 905K....our goal is 1 mil. We recently moved everything into the G fund. Our monthly investments are going into C.
Congratulations! You have done well! I hope the next two years go by quickly for you.

burrocrat
02-19-2016, 06:35 PM
oh i can make hay alright


https://www.youtube.com/watch?v=TVRzk3VWOKY

scsiguru
12-10-2016, 01:36 PM
I'm 56 and covered under FERS. Next year I'll have 29 years of service. My current TSP balance is $555K and I'm contributing the max $24K. My wife is retired under CSRS at 55, due to health issues caused by work stress and her TSP balance right now is $114K. We haven't had any need to touch her TSP, and might tap into it when our daughter gets married. I'll be eligible to retire in 18 months and I'm just taking a "wait and see" approach as to when I will retire.

1mech
12-15-2016, 03:23 AM
I have been employed by the Postal Service for 22 years now, started out saving around 10%, then with each pay increase, I would step it up another percent until reaching the max. I have no military time and my wife is not employed, so she has only my retirement funds.
I now have a balance of about $365,000 with about eight years to go before being a former postal employee.
I mostly stay invested in the C and S funds and have found I lose more by getting out into the G fund than I do by staying in the C & S funds, always bad timing.
Hope the Trump market keeps going strong!

uscfanhawaii
12-15-2016, 04:18 PM
60 yrs old, 30 years in FERS/TSP, TSP balance 800K. 250K of that is from matching funds (and growth on those funds)!

The matching funds really adds up over time! Never go below 5% contribution, so you never lose out on any matching funds.

Okay, update time. And maybe some additional info.

Now 62, still working. All TSP acct is from my contributions and matching (did not roll any into TSP from outside.) Never was in the military, so all is from Federal workplace. Now 32 years in FERS/TSP. (I was one of the few nationwide that switched from CSRS to FERS, when the latter came out!)
TSP Balance $880K. Down from my max of 905K in June of 2015. From the start of FERS, I always put as much as allowed into equities (you will recall that when it started it was all G.) Then I did Dollar Cost Averaging with C/S/I when we were allowed to. As the account grew, I started moving $$ around (yes, I was one of the TSP'ers to get "The Letter".)

Tried to stay at 15% contribution most of the time, and a few times was able to sock away the Max (including max catchup). But mostly 15%.

My goal has always been to get to $1MM. Planning to work 1-2 more years, so goal is still achievable.

I encourage all the younger workers to contribute the max possible, as early as possible. Set your goals high! And stick to your plan! :unitedstates:

gboper
12-17-2016, 12:09 PM
Day one on the site, this seemed like a good place to start. Age 46, gs9, step 2, RUS, balance of $104k, 10 years of FERS. Planning on "retiring" in 10 years. My retirement plans are more like doing something different, possibly in a community service type position. and make just enough money to pay the electric bill. My TSP target is $400k.

tsptalk
12-17-2016, 12:53 PM
Welcome to TSP Talk folks! Thanks for joining us.

Don't forget to get added to the AutoTracker! It's beneficial to start before January 1st so that you can track your 2017 return for the full year.

More info: http://www.tsptalk.com/mb/rules-tos-and-info-please-read/9658-autotracker-rules-how-get-started-post320464.html#post320464

Jqsomera
12-20-2016, 07:14 PM
44 yrs old, 5 yrs with FERS, 20 yr Army retiree, have a balance of approx. $131k, currently contribute 11% in lifecycle, C & S funds. Plan to increase contributions to 14-15% at the beginning of 2017 - thanks to our projected raise - Yay!!

Skorcher
12-21-2016, 02:56 PM
I have been in the TSP since the G fund was created on April 1, 1987. I recall the government started us FERS people off with a 3% match on accumulated wages earned from my July 1984 start date to March 31, 1987. Unfortunately I was only a GS-4, 5 & 7 during that time frame so the free match wasn't much. I usually contributed the max which started out at 10% then through the years went up to 15% then eventually the IRS max for 401k. My balance is about $825K and I am hoping to retire 12/31/17.

sillbeer
12-21-2016, 04:28 PM
37 years old
11 years federal civil service. I'm in the process of buying back 7 years of active duty Air Force time.
I've always contributed 6% or more and am currently at 6%.
$96,770, all since I started civil service, no active duty contributions.
I should be getting a gs-13 in a couple months and will definitely increase my contributions. Goal is in the million plus range.

Globalpack
01-01-2017, 05:34 PM
I read an article that said you should have ten times your annual salary saved by retirement. I don't see that happening personally and was wondering how the folks here compare.

It may also serve as a good motivation tool to save more.

So what's your TSP balance and how old are you?

Me, I'm 44 and have $148K.


Continuing the updates theme...my previous post - August 2014 I was $148K, but now 2.5 years later January 2017 I'm $189.5K (up $41,500) thanks mostly to the economy.

blkflm6888
01-04-2017, 03:30 AM
28 years old, 7 year Active duty, $2X,000. Roth. Last year 8%, this year 9%, then switch to new retirement plan for match. Thinking of coming down to 7%=12%. Currently in a 75% L2050/25% C allocation.

Sent from my SCV32 using Tapatalk

FAB1
01-04-2017, 07:18 AM
Age - too old
time served - too long
tsp - not enuf

reading you guys posts is getting me depressed. I will have to work forever.

FAB1
01-04-2017, 07:51 AM
Before anyone replies to my post let me tell you how NOT to do it.

My first ten years of service did not do anything with the TSP the autos went to the G fund then got laid off about 3 yrs (not my fault, heh.) but after returning to duty status I STILL didn't do anything different. So yeah I missed the Unlimited trades period
but also missed the Crash in 2008-09. :cheesy:

It was late 2009 I think I found this site and with about 5K in G fund after nearly 10 yrs got serious about TSP.

So my balance is a lot lower than most for about 15 yrs service, I have already embarrassed myself
enough suffice to say kicking myself isn't going to do any good....for 8 years of active investing the balance isn't
that bad - would like to retire in about 4-5 years with something north of 100K and keep the account open TSP max.

Jackbnimble
01-04-2017, 09:42 AM
I'm 49, 22 years of service with a balance just north of $400,000. My goal is to save as much as I can for the next 8 years until retirement. I have always stayed invested in the stock funds (except for a short time in 2008-2009), but I have started moving some to G to protect and preserve. My retirement plan calls for me to use some of my TSP immediately when I retire.

Boghie
01-06-2017, 02:52 PM
Age: 50
Balance: $340K
Investing: Did not start till I was about 32 (What a waste, I would not have to contribute a dime if I started earlier)
Expected Balance at age 65 (using Quicken and DinkyTown.Net):

Age: 65
Expected Return: 8% - Done better, but being conservative and considering I will be more conservative at age 60 or so
Expected Inflation: 3% - For quite some time now it has been in the 2's. That is very nice...
Expected Balance: $1.4 mil - $1.5 mil
Expected Annual Withdraw (20 years): $75K
Expected Annual Withdraw (30 years): $60K


However, unlike my retired military friends, I will have to pay for my medical insurance and I will only receive a pension from age 65 onward (if that is when I retire) and I do not receive commissary privileges nor VA loans and some other niceties. However, I did get a good match and I do not have to hope that a future politician will honor promises of past politicians. Personally, knowing what I know now, if I were a young military dude I would much prefer a matching TSP to the pension. It would transfer for those who get out before a pension, it would not be in view of politicians seeking cash, and I can watch my assets rather than having them slammed into the G Fund. Just my two cents.

Since others are posting updates:

Age: 52
Balance: $425K
Investing: Alternate between three allocations (Conservative, Normal, Aggressive)
Expected Balance at age 65 (using Quicken and DinkyTown.Net):

Retirement Age: 65
Expected Return: 7.69% - My actual IRR since 2004. I have obviously gone more conservative...
Expected Inflation: 2.5% - I still expect very muted inflation. Could change, but...
Expected Contributions: 15% of Gross Salary, 10% from me, 5% match
Expected Balance: $1.3 million
Expected Annual Withdraw (20 years): $74K
Expected Annual Withdraw (30 years): $60K


I'm OK with that. My guess is that my IRR will raise over the next 2 - 4 years so the ending balance should be higher. I think my focus should be on keeping my average annual return about 5% higher than inflation. Happy:cheesy:

Pill
01-07-2017, 02:37 AM
Been a few days since I lasted posted. However I still read the site almost daily and keep up with the auto tracker. I feel like I am doing good compared to my coworkers, however I still feel like I need to do more. I guess thats a good thing.

41y/o
13 years of service
$258k TSP balance, with a goal of 800k-1.3m
Plan to retire in 8-13 years, depending on balance.
I could stay to the maximum age for me of 57 in hopes of a 1.7m balance but don't want to stay, but things could change.
From day one started with saving 13%, and increased from there. Reached 25% for a time, but hover around 18% now.
Stayed mostly with a buy and hold approach, currently 30C, 40S, 30I. Plan to stay this way with a slight reduction of the I fund.
I owe a lot of my success to my dad who said I should max tsp out, then TSPtalk!(found in 2004) And now I am addicted to Bogleheads.org

cjmruns
01-11-2017, 08:43 PM
43. Lost it all after a divorce so stated again in 2010.
Current balance is $196,500 - Gradually increased until I got to the full $18k annually.
Buy and hold at 70/20/10 c/s/i.
I'm also contributing $5,500 to an outside Roth hoping to make up for lost time.

coquina
01-14-2017, 12:32 PM
51. In FERS/TSP since before college grad - roughly 32 years. Made max contribution for the past 17 years but before that put at least 10% of pay in. Just crossed $700,000. Could have been better had I aggressively invested in equities but stayed pretty true to a 40% C, 10% S, 10% I, 30% F, 10% G allocation throughout. My main disappointment is the I Fund. I haven't gotten stock market type returns with that piece.

Tsunami
01-15-2017, 01:54 PM
I love this thread, it reads like a therapy session. :smile: Hi, my name is Tsunami, I'm 56, married, and...

I could retire now if I had 3 bad days in a row at work, but I just took a new position with a big promotion and it wouldn't look too cool to leave soon, so my plan now is 12/22/18 or 3/31/19, unless I'm really liking the new job by then in which case I'll go to the end of 2019 to get full benefit of the new pay in my high-3. If I get wiped out by a stock market nosedive, then I'd likely to age 62.

I'm coming up on 33 years as a Fed, almost 8 years under CSRS in the 80s as a nuclear engineer for DOD, then I left for greener pastures, then saw the error of my ways and came back to Uncle Sam in 1991 (and immediately bought back my CSRS years, so my annuity will get about a 10% bump from the CSRS component)...back of the envelope calculations at the time showed I could get to around $1.5M in my TSP by age 56, so with dollar signs in my eyes on my first day at the new job I signed the paper to leave CSRS Offset and go to FERS, argh. A subsequent divorce then stung my TSP growth (I'd started my TSP in Nov 1991), since between that and the high cost of living in California I had to cut my contributions to just 5% for 12 long years. Now my second wife of 20+ years and I are building our empire, and I'm catching up to my goals and in the TSP I max'd out with the $24k contributions last year for the first time...current balance $527K, with projections of $675K by 12/31/17. Our net worth recently topped $1M, so that was a nice milestone. :banana:

Retirement Plan:
- To not follow any more gurus ever again, I've subscribed to over 20 of them since 2001. I'll follow my own plan.
- To stay in the TSP upon retiring and do monthly withdrawals, adjusting annually to whatever 6% of my balance is, assuming 7% returns on average, hopefully I will do a bit better, but after any bad years the budget shows I'd be able to cut way back or stop the withdrawals and be OK.
- For whatever we don't spend from the TSP withdrawals (and non-retirement account investments), I will invest with a 50/50 mix of a dividend stocks portfolio (which I recently started with $100K in my TD Ameritrade account, $5K each of 20 stocks), which should net me 4.8% this year, or $400/month, and will grow from there...and with the other half I'll invest in ETFs using the same strategies I'm beginning to use in my TSP.
- If there's still more leftover after I get my wife her HGTV dream home, all the "stuff" she wants to fill it, and a pool girl for me, and taking a few nice trips each year and/or spending several months each summer away from the Florida heat (Viera, FL is our retirement destination) in places like Puget Sound, then I hope to start gifting the excess to our 3 kids.

CoachGrif
01-16-2017, 04:41 AM
I retired at 59, with 30 years, being a GS 13 for 20 of those years. I put the full amount allowed by IRS in the TSP for all those years and the maximum amount allowed as a catchup contribution. I have been in the TSP premium services since their inceptions and have used either one service or all the services at various times. I have primarily used the S fund for the last 10 years and the C,S and I funds prior to that. I moved in and out of the market (timed it) regularly using a combination of the premium services and my tracking of political and financial news. When I left government I had $800,000 in the TSP and that was after suffering a $200,000 loss in 2007 and 2008. At present I have $1,140,00 in the TSP. I have never withdrawn any funds.


Sent from my iPad using TSP Talk Forums (http://r.tapatalk.com/byo?rid=74921)

MeowPower
01-16-2017, 12:05 PM
Talk is cheap.

37 years old. 14yrs of service. All military (non agency matching). I have been investing since 2004. Just a little over $450K total

I have about ~$227K in my TSP and another ~$227K in my investment (Roth IRA and brokerage) accounts.

Here is my proof since talk is cheap.

http://imagizer.imageshack.us/v2/xq90/924/oej1hX.jpg (https://imageshack.com/i/pooej1hXj)



http://imagizer.imageshack.us/v2/xq90/923/tMv3rc.jpg (https://imageshack.com/i/pntMv3rcj)

RealMoneyIssues
01-16-2017, 03:12 PM
Age - too old
time served - too long
tsp - not enuf

reading you guys posts is getting me depressed. I will have to work forever.

Amen, me too...

drbama
01-17-2017, 08:56 AM
I'm 47 with a current TSP balance of $360K. Had been a buy-n-holder in C/S funds since start of service, but rode the 2008 crash all the way down. Found TSP Talk a couple of years ago, so have been transferring between funds based on input from forum regulars. I also subscribe to Tom's premium service. 2016 was a good year; just prior to the election I was top-50 on autotracker, but was out on election day, so missed a good bit of the post election gains. Still ended the year with 16+%.

I am currently contributing 10% to TSP. No other outside investments. Using Scottrade, I've tried to dabble with individual stocks and ETFs, but end up losing money. At 57 (my MRA), I will have 34+ years of service, with a high-3 average of $150k+.

Question: If I could only do one of these, should I: 1) continue to increase my contributions to TSP to 15%, 2) start contributing to TSP Roth, 3) contribute to Roth outside of TSP, 4) steadily contribute to mutual funds. I know I have to be careful to not exceed the max allowed, and can contribute an extra amount once I reach 50.

I know the answer starts with "it depends", but would appreciate any advice. Thanks much.

evilanne
01-17-2017, 11:14 AM
Question: If I could only do one of these, should I: 1) continue to increase my contributions to TSP to 15%, 2) start contributing to TSP Roth, 3) contribute to Roth outside of TSP, 4) steadily contribute to mutual funds. I know I have to be careful to not exceed the max allowed, and can contribute an extra amount once I reach 50.

I know the answer starts with "it depends", but would appreciate any advice. Thanks much.I wouldn't limit yourself to only one, but my order of preference would be 3, 1, 4. Depending on your AGI, Roth phases out between 117K & 132K. If you are worried about your current/future taxable income with option 4, you might consider municipal bonds as part of your investment strategy.

1965Vintage
01-30-2017, 08:27 PM
I'll be turning 52 in a few days. I have 16 years of Federal Service and have a balance of $170,000 in my TSP. It would be more but I took out a $50,000 TSP loan to build a house last summer and am making minimum payments on it for the next 15 years. ($149 per paycheck)
I don't plan to retire early and may work till I'm well over 70, so I have lots of time to build up my TSP. At this time I am only contributing 6% each paycheck and have never contributed more than 10%.
I actively manage my TSP and really miss the unlimited trades!
I use the G, C & S funds only. I don't understand enough about International Markets or Bonds to mess with the F or I funds.

dhstdog
01-30-2017, 08:51 PM
I assume you all are aware that your TSP is not insured. Money in the bank or credit union or broker accountant yes insured. I won't post that much information in a public forum, definitely don't cut and paste from TSP. If someone drains your account or takes a loan out. You get to file a police report but that money is GONE! Not insured... good luck I have .90c in my puny acct! ��

blueroadster
01-30-2017, 09:41 PM
I assume you all are aware that your TSP is not insured. Money in the bank or credit union or broker accountant yes insured. I won't post that much information in a public forum, definitely don't cut and paste from TSP. If someone drains your account or takes a loan out. You get to file a police report but that money is GONE! Not insured... good luck I have .90c in my puny acct! 😂

Isn't the issue of funds not being insured also true for pretty much all 401k and 403b retirement accounts?

dhstdog
01-30-2017, 11:59 PM
Isn't the issue of funds not being insured also true for pretty much all 401k and 403b retirement accounts?

That depends where the money is parked however I don't see anyone posting their private 401k information here. Just a friendly word of caution my friend. Cheers

badeye28
02-01-2017, 05:59 PM
I'm 51 with $292k in my account. I just started on tsptalk, looking to maximize my returns and avoid the down years.

Sent from my Lenovo TAB 2 A10-70F using TSP Talk Forums mobile app (http://r.tapatalk.com/byo?rid=74921)

uscfanhawaii
02-01-2017, 06:56 PM
I'm 47 with a current TSP balance of $360K. Had been a buy-n-holder in C/S funds since start of service, but rode the 2008 crash all the way down. Found TSP Talk a couple of years ago, so have been transferring between funds based on input from forum regulars. I also subscribe to Tom's premium service. 2016 was a good year; just prior to the election I was top-50 on autotracker, but was out on election day, so missed a good bit of the post election gains. Still ended the year with 16+%.

I am currently contributing 10% to TSP. No other outside investments. Using Scottrade, I've tried to dabble with individual stocks and ETFs, but end up losing money. At 57 (my MRA), I will have 34+ years of service, with a high-3 average of $150k+.

Question: If I could only do one of these, should I: 1) continue to increase my contributions to TSP to 15%, 2) start contributing to TSP Roth, 3) contribute to Roth outside of TSP, 4) steadily contribute to mutual funds. I know I have to be careful to not exceed the max allowed, and can contribute an extra amount once I reach 50.

I know the answer starts with "it depends", but would appreciate any advice. Thanks much.

Sounds like you have a good start!
And asking the question is good , anytime!
Have you looked at the Roth threads and the Investment Strategies threads? There are lots of good points to consider for your personal situation.
I will say (and have said in detail in the Roth vs Traditional IRA/TSP threads) I think everyone should have some Roth exposure for 'tax diversification' reasons, if nothing else. BUT, Roth TSP does NOT appeal to me at all. For Roth, go outside to a good IRA firm (I like Vanguard).
Good Luck in your investing! :D

DrDetroit
02-02-2017, 01:42 AM
Question: If I could only do one of these, should I: 1) continue to increase my contributions to TSP to 15%, 2) start contributing to TSP Roth, 3) contribute to Roth outside of TSP, 4) steadily contribute to mutual funds. I know I have to be careful to not exceed the max allowed, and can contribute an extra amount once I reach 50.

I know the answer starts with "it depends", but would appreciate any advice. Thanks much.

Maxing Roth IRA then TSP traditional at least up to match would probably be my advice. As far as the Roth TSP that does depend on one important thing: will you be in a higher tax bracket when you retire? If the answer is yes then use the Roth TSP, if the answer is no then don't bother with it. No one knows what the tax rates will be 10, 15, 30 years down the road but they aren't likely to be all that different than they are now. In the same vein we don't know if the rules on Roth contributions/distributions will be changed, but that is just as much a threat as the tax rates IMO.

Have an emergency fund too, then fund the TSP up to the max, outside investments, etc. A Roth IRA can also double as an emergency fund because you can always take the principal without taxes or penalty.

DrDetroit
02-02-2017, 01:54 AM
I assume you all are aware that your TSP is not insured. Money in the bank or credit union or broker accountant yes insured. I won't post that much information in a public forum, definitely don't cut and paste from TSP. If someone drains your account or takes a loan out. You get to file a police report but that money is GONE! Not insured... good luck I have .90c in my puny acct! 😂

Doesn't hurt to be safe I guess but stealing money from a TSP account, especially if you haven't yet retired, is pretty tough. TSP needs to go away from the passwords however and go to multi-tiered authentication. I thought they said they were working on that, but haven't heard anything in a while.

This is one password I would never write down anywhere. Memorizing your account number, password, always checking from a fire-walled home/trusted computer, and not telling guys on the train how much you're worth is always smart. I wouldn't be paranoid about someone draining my account though, there are enough security measures in place to make that very difficult.

mbrogz3000
02-17-2017, 09:47 AM
I'm not saying what my balance is, but will give some insight... it's empowering to have a significant base amount saved by the time you are in your mid 30's. You start understanding the big picture of government work, and what's really needed to move up (ie bullshitting and kissing up and managing smart people becomes more important than doing the job itself)...and once you run the numbers and realize campaigning to move up isn't going to 'really' earn you that much more both salary and extra-TSP matching wise... it's just extremely satisfying to know that you don't 'need' to move up for more money. And also that you don't need to leave government work to make more either, unless you get an offer from Google of at least doubling or tripling your salary while keeping the same amount of personnel leave time (very unlikely for most).

Forget saving a percentage folks...drive to save that maximum contribution amount each year.

(Before anyone complains, I wrote this on my own personal leave time, not Govt time.)

Globalpack
02-18-2017, 04:23 PM
Forget saving a percentage folks...drive to save that maximum contribution amount each year.

I agree, aim for max contribution early as possible. I started the maximum about a year ago, then stopped just a few pay periods later because we want a bigger house. Max will happen again hopefully within a year or two.

I'm 46 and TSP balance 198K.

sushicam
12-08-2017, 08:28 AM
46 years old, 21 years of federal civil service, $625K.

Contributed 5% for the first 6 years, then bumped that up to the max for years 7-18, then went back down to 5% once I reached what I determined to be my coast-point. (Coast-point meaning the compounded growth of my existing balance will far out strip any additional contributions over time, but no sense giving up any matching funds.)

Was lucky to avoid a major haircut in 2008. (-14% that year)

47_Dodge
12-08-2017, 10:32 AM
50 years young, 22 years of TSP contributions,and a TSP balance of 610,000.
Not to bad for an old "TURN-KEY" from southern Illinois making less than $69,000 per year.

RazorCat
12-08-2017, 11:07 AM
Hi, my name is Jim and Iím an invest-aholic (Can I get a Hi Jim?). I was a serial TSP contributor most of my working life. I started out as a 5%er and just got worse from there. Before I knew it I was up to 10%, then 15%. When I finally came clean with my wife it was too late. I was rolling all my raises into TSP and contributing the IRS maximum + $5,000 in catch-up contributions + investing heavily in highly profitable outside ventures. Yeah, I had gone over to the dark side of non-TSP investing. It was an addiction with no cure..........
Until I met my retirement counselor. She saved me (but not so much my money) from myself. She convinced me that retirement was the only way to beat my TSP contributions addiction. So, at 56 I retired and stopped contributing. It was hard, and I backslid a couple times. My wife finally gave me an ultimatum when she caught me rolling my annual leave lump sum into my outside 401k. She demanded that I set up monthly withdrawals from TSP or my other 401k and start spending some of the money I had saved over 30+ years. Wait WHAT? NOOOOOOOOO!
I've been clean for about 4 years now (except for the yearly rollover of interest payments back into outside investment accounts that she doesn't know about :27:). I've found other addictions like fishing, boating, regularly sampling a variety of beers, remodeling a lakehouse, and some light posting on various websites.
At 60, I'm retired, permanently unemployed, and have more $$$$$$$ then I can ever possibly spend (unless I buy that Aston Martin I've been eyeing). My TSP and 401k balances are far, far beyond anything I ever dreamed of. Haven't quite reached the million dollar mark, but getting close. Maybe in the next 3-4 years with luck.
I love me some compound interest.

dannyboy
12-08-2017, 01:19 PM
I read an article that said you should have ten times your annual salary saved by retirement. I don't see that happening personally and was wondering how the folks here compare.

It may also serve as a good motivation tool to save more.

So what's your TSP balance and how old are you?

Me, Im 44 and have $148K.

Maybe rename this thread: FANTASY TSP?

GREENBAYPACKERS
12-08-2017, 01:40 PM
31 years old. 8 years service. $117000. 100% stocks but only do 10% since my wife is stay at home with two kids.

1mech
12-12-2017, 08:45 PM
Hi, my name is Jim and Iím an invest-aholic (Can I get a Hi Jim?). I was a serial TSP contributor most of my working life. I started out as a 5%er and just got worse from there. Before I knew it I was up to 10%, then 15%. When I finally came clean with my wife it was too late. I was rolling all my raises into TSP and contributing the IRS maximum + $5,000 in catch-up contributions + investing heavily in highly profitable outside ventures. Yeah, I had gone over to the dark side of non-TSP investing. It was an addiction with no cure..........
Until I met my retirement counselor. She saved me (but not so much my money) from myself. She convinced me that retirement was the only way to beat my TSP contributions addiction. So, at 56 I retired and stopped contributing. It was hard, and I backslid a couple times. My wife finally gave me an ultimatum when she caught me rolling my annual leave lump sum into my outside 401k. She demanded that I set up monthly withdrawals from TSP or my other 401k and start spending some of the money I had saved over 30+ years. Wait WHAT? NOOOOOOOOO!
I've been clean for about 4 years now (except for the yearly rollover of interest payments back into outside investment accounts that she doesn't know about :27:). I've found other addictions like fishing, boating, regularly sampling a variety of beers, remodeling a lakehouse, and some light posting on various websites.
At 60, I'm retired, permanently unemployed, and have more $$$$$$$ then I can ever possibly spend (unless I buy that Aston Martin I've been eyeing). My TSP and 401k balances are far, far beyond anything I ever dreamed of. Haven't quite reached the million dollar mark, but getting close. Maybe in the next 3-4 years with luck.
I love me some compound interest.


Hi Jim, sounds like you are doing ok, I too have been adding to my TSP starting out with 5 or 6 %, I don't really recall, then with each pay or step increase, I would add another 1% to my TSP deposits until I maxed out. Last year I dropped it down a bit so as not to miss out on a couple of year end matches due to exceeding the max. Now I am back to max. My balance grew by about $80,000 since this time last year. I just ran a report on retirement income and it says, with my current balance and amount of contributions, I should retire in seven years, just shy of 1 million $ at a 7% return rate; hopefully it will be better than that. If I withdraw $5000 per month, my account will continue to grow faster than my withdrawals and I will soon be north of 1 Million $ and growing!
Best of success to you in your retirement!

RazorCat
12-12-2017, 11:28 PM
Hi Jim, sounds like you are doing ok, I too have been adding to my TSP starting out with 5 or 6 %, I don't really recall, then with each pay or step increase, I would add another 1% to my TSP deposits until I maxed out. Last year I dropped it down a bit so as not to miss out on a couple of year end matches due to exceeding the max. Now I am back to max. My balance grew by about $80,000 since this time last year. I just ran a report on retirement income and it says, with my current balance and amount of contributions, I should retire in seven years, just shy of 1 million $ at a 7% return rate; hopefully it will be better than that. If I withdraw $5000 per month, my account will continue to grow faster than my withdrawals and I will soon be north of 1 Million $ and growing!
Best of success to you in your retirement!
Youve got a good handle on things. Thatís what your shooting for. Be able to grow your account faster, at reasonable rate of return, than what you plan to withdraw. Youíll do fine in retirement.

felinecrl
12-15-2017, 10:58 AM
50 years young, 22 years of TSP contributions,and a TSP balance of 610,000.
Not to bad for an old "TURN-KEY" from southern Illinois making less than $69,000 per year.

Wow! That is awesome! Based on what you earn, your consistency over the long-tem is looking very nicely. Congratulations!

felinecrl
12-15-2017, 11:04 AM
I'm not saying what my balance is, but will give some insight... it's empowering to have a significant base amount saved by the time you are in your mid 30's. You start understanding the big picture of government work, and what's really needed to move up (ie bullshitting and kissing up and managing smart people becomes more important than doing the job itself)...and once you run the numbers and realize campaigning to move up isn't going to 'really' earn you that much more both salary and extra-TSP matching wise... it's just extremely satisfying to know that you don't 'need' to move up for more money. And also that you don't need to leave government work to make more either, unless you get an offer from Google of at least doubling or tripling your salary while keeping the same amount of personnel leave time (very unlikely for most).


Forget saving a percentage folks...drive to save that maximum contribution amount each year.

(Before anyone complains, I wrote this on my own personal leave time, not Govt time.)

LOL! Good advice. I trust you do have a substantial amount invested, based on your truths.

felinecrl
12-15-2017, 12:32 PM
Hello All: I became 55 y.o. this Nov. I joined TSP Talk sometime last year and don't have enough time to keep up with all the threads, so I generally post to the Fund Talk thread, and just noticed this one today. After reading a bevy of posts, I have to commend everyone for just investing something.
Most of my career has been civilian/corporate and I have been with the federal government since July 2008. Prior to that, I have invested in 401Ks and some without a match. My philosophy was to follow the advice of my grandparents, which was to pay yourself first and save something up for retirement, no matter what the amount. So, while raising two daughters after a short-lived marriage of 6 years and very little child support, I remember investing $25 per month to an investment company during the early 80s through early 90s, when I discovered the fees were eating into my investment.
To fast forward: On average I have Roth and Traditional outside 401Ks and an annuity in the amount of approximately $32K. Since 2008, I started investing 25% of my salary in TSP, lost some of it prior to transferring what was left into the G fund. At some point the next year, I started investing the max as a GS 9, and continued to max as I promoted to GS 13 since two years ago. During the year I turned 50, I contributed the max and catch up, literally trying to catch up, so I can invest as much as I can until my target retirement of MRA + 10, which is December 2018. My TSP balance is approximately $239K, and I generally invest in the C, S, I, L2050 and F, but since April 2017 I have stayed the course in C35, S30, I25, F10.
I plan to continue to invest as aggressive as possible without taking too much risk, so I pay more attention to the market now. Since my husband has a much nicer retirement nest egg, I will not withdraw a pension upon retirement but at age 62 or 65. Also, our plan is to not withdraw funds from TSP until 70, unless we necessarily must. We will travel and do the things we weren't able to, due to raising kids, helping family and working, while we still have our good health. During the times we're not travelling, I will substitute teach high school, in order to keep my teaching certification valid. Our kids are grown, and we have two grand kids who we will spend more time with also.
I didn't see anyone post anything about life insurance options, but they too are part of or financial plan. I also have a life annuity insurance plan with Alliance, formerly Aviva that operates like an annuity or life insurance plan. My plan has a max of $260K, which is payable in lump sum if I depart prior to age 65. After age 65, I becomes an annuity in which I can receive lifetime payments from its appreciated value. Our mortgage will be paid off in 1 year, have a balance on credit cards that an be paid off monthly, and 1 car note. So, I don't think I'm doing too bad on my catch up endeavor.

paulsz28
12-15-2017, 04:18 PM
34yo
10 years service (mid-upper GS-12 equivalent currently)
$179K balance

I didn't watch my balance after I started, didn't know what I was doing, and it took me until the end of 2011 for my gains to really start taking off. At the time my balance was $45K, only $3K of which was gains. Ouch! I was reacting at the wrong times, now watching my balance, just a plain noob throwing money away.

I ended up getting into a contribution allocation I liked for "buy and hold" risk exposure and settled on:
G - 8%
F - 15%
C - 42%
S - 35%
I - 0% (at the time, the Greek thing seemed to be tanking the I-fund, although I realize now I-fund is more interested in British and Japanese markets)

That did reasonably well for me, and I have since gained $56K compared to $69K in contributions, not counting this quarter. I'm now trying to stay in touch with TSPTalk to improve those gains (by getting on board which whichever fund(s) is performing best at the time), and minimize losses during down turns.

Right now, I am contributing 5% matching + 1% Roth, plus maxing out a Roth IRA. I was in the 10%-12% contribution range for a little while, but life expenses have taken me down from that. Planning to up TSP by 2% with each pay raise until max is reached in 5 years.

fretwell
12-15-2017, 04:32 PM
I read an article that said you should have ten times your annual salary saved by retirement. I don't see that happening personally and was wondering how the folks here compare.

It may also serve as a good motivation tool to save more.

So what's your TSP balance and how old are you?

Me, I'm 44 and have $148K.


You don't say what age you want to retire by, but I think you still have very good shoot at $1M+ by age 62.

I put together the attached spreadsheet a couple of years ago. (Hopefully it attaches. And, hopefully my logic putting this together is good too.)

I made an adjustment to use your age and TSP balance. It shows someone that averages a GS-7 Step 1 salary, contributes 5%, gets an annual 10% return, can save $1M+ by age 62.

42612

And, as you probably already know, you're probably going to have to invested in either the C, S, or I funds; or a combination of those funds, to average 10% annually.

fretwell
12-15-2017, 05:17 PM
Some of you will wonder where I came from. Well, I've been one of those viewers in the background for a very long time, probably 20+ years.

I just turned 54 and I have almost 31 years worth of service (started January of '87) and I'm currently a GS-13. My current TSP balance is just over $930k.

I started out in a job series that went GS-5/7/9/11, so I got to GS-11 fairly quick. And, got a GS-12 just a couple years later. I only got my GS-13 a few years ago.

At one time I was contributing about 15% to the TSP, but for about the last 10 years I have only contributed 5%.

You will see I start out conservatively. Luckily, I had a friend /co-worker that basically hounded me to contribute more and to get more aggressive. And, you will see below I did get more aggressive starting about year 5. I got pretty lucky that I did not lose too much between 2007 and 2011. What is not reflected below is that I was early to move to the G-Fund during this time and avoided a big loss. But, I was actually slow to fully move back into the market full-time, so I missed a really big gain too.

And, my thoughts the last few years have been...if I want to retire early, I more afraid of being out the market, than being in the market. If being in the market does not work out, I can always work more years. And, if I decide to be conservative, I will have to work more years anyway. Therefore, to me it is worth the gamble of staying 100% in either the C, S, or I funds.

Also, I created a spreadsheet probably 25 years ago that lead to me believe that $1M+ was possible by my MRA. This probably helped me stay the course.

Below are most of my balances over the years and how I was invested:

Starting working at age 22 in January of 1987.
1/31/1988 - 100%G - $7.20 (first TSP deposit was probably just a 1% match)
1/31/1989 - 100%G - $327
1/31/1990 - 100%G - $3,313
1/31/1991 - 100%G - $7,268
1/31/1992 - 75%G/25%C - $12,886
1/31/1993 - 15%G/85%C - $20,898
1/31/1994 - 10%G/90%C - $30,482
1/31/1995 - 9%G/91%C - $37,941
1/31/1996 - 6%G/94%C - $59,952
1/31/1997 - 100%C - $81,661
1/31/1998 - 100%C - $104,982
... (not much happen here, so I left these years out)
1/31/2003 - 100%C - $134,169
1/31/2004 - 90%C/10I - $195,442
1/31/2005 - 90%C/10I - $223,911
1/31/2006 - 25%C/25%S/50%I - $271,611
1/31/2007 - 28%C/22%S/50%I - $324,858 * (Basically 4 years of almost no growth) *
1/31/2008 - 100%S - $324,034 *
1/31/2009 - 100%I - $294,075 *
1/31/2010 - 100%I - $296,487 *
1/31/2011 - 75%S/25%I - $339,653 *
1/31/2012 - 100%G - $417,926
1/31/2013 - 100%S - $478,460
1/31/2014 - 100%S - $565,458
1/31/2015 - 100%S - $620,055
1/31/2016 - 100%S - $596,869 * (Lost money this year)
1/31/2017 - 100%S - $806,439 ** (Great year! Hopefully get another one just like it soon!) **
12/14/2017 - 50%C/50%I -$930K+

So, I just turned 54 and God willing hope to have $1.2M+ by my MRA of 56.

I have 3 fed friends that are already TSP millionaires. One is a GS-13, another retired as a GS-14, and the last works for the FAA as an Air Traffic Controller (okay, his pay scale is off the chart).

Anyway, it appears $1M+ by retirement is possible by normal fed workers. Actually, I believe it is possible by anyone that averages just a GS-7 Step 1 salary, contributes 5%, averages annual 8% return, and works from age 23 to 62. Attached is spreadsheet I put together in 2016 that shows it is possible. (Hopefully, my logic used to create this spreadsheet was good.)

42613

Hopefully, my story encourages others to just go for it.

Boghie
01-04-2018, 10:16 AM
Since others are posting updates:

Age: 52
Balance: $425K
Investing: Alternate between three allocations (Conservative, Normal, Aggressive)
Expected Balance at age 65 (using Quicken and DinkyTown.Net):

Retirement Age: 65
Expected Return: 7.69% - My actual IRR since 2004. I have obviously gone more conservative...
Expected Inflation: 2.5% - I still expect very muted inflation. Could change, but...
Expected Contributions: 15% of Gross Salary, 10% from me, 5% match
Expected Balance: $1.3 million
Expected Annual Withdraw (20 years): $74K
Expected Annual Withdraw (30 years): $60K


I'm OK with that. My guess is that my IRR will raise over the next 2 - 4 years so the ending balance should be higher. I think my focus should be on keeping my average annual return about 5% higher than inflation. Happy:cheesy:

Have a Great 2018 folks - 2017 was stupendous!!!

Age: 53
Balance: $499K (as of 2017/12/29 - Dang market lost a fraction of a percent)
Investing: Alternate between three allocations (Conservative, Normal, Aggressive)
Expected Balance at age 65 (using Quicken and DinkyTown.Net):

Retirement Age: 65
Expected Return: 8.25% - My actual IRR since 2004.
Expected Inflation: 3.0% - I still expect very muted inflation. Could change, but...
Expected Contributions: 15% of Gross Salary, 10% from me, 5% match
Expected Balance: $1.425 million
Expected Annual Withdraw (20 years): $80K
Expected Annual Withdraw (30 years): $65K


Edelman Financial's VERY Conservative estimations:
Age: 53
Balance: $499K
Investing: Alternate between three allocations (Conservative, Normal, Aggressive)
Expected Balance at age 65 (using Quicken and DinkyTown.Net):

Retirement Age: 65
Expected Return: 5.5% - A disgustingly conservative number.
Expected Inflation: 3.0% - I still expect very muted inflation. Could change, but...
Expected Contributions: 15% of Gross Salary, 10% from me, 5% match
Expected Balance: $1.111 million
Expected Annual Withdraw (20 years): $50K
Expected Annual Withdraw (30 years): $37K

Edelman Financial determined that I need 40K annually inflation adjusted from my TSP account for thirty years of retirement and an additional 8 years for the wifey. There are additional assets ($140K) from the sale of the house that bring the 30 year window distributions to well over that requirement - at 5.5% return. Yowser...

RazorCat
01-04-2018, 11:27 AM
I frequent another website (BBC) where we discuss everything from fishing, to boating, to finance. I have to say, the overwhelming majority of the members on this site should be very satisfied with where they are financially, and how well they're prepared for retirement.
After reading some of the personal accounts regarding retirement savings (or the lack thereof) of some of the folks on that other site all I can say is OUTSTANDING WORK. :bigok:

mboja
01-25-2018, 01:38 PM
What fund(s) are you currently contributing into?
Are you following any TSP strategists, TSP Calculator?
How frequently do you move between fund(s)?

mboja
01-25-2018, 01:41 PM
What fund(s) are you currently contributing into?
Are you following any TSP strategists, TSP Calculator?
How frequently do you move between (inter)fund(s)?

GREENBAYPACKERS
01-25-2018, 04:13 PM
31 years old. 8 years service. $117000. 100% stocks but only do 10% since my wife is stay at home with two kids.

my balance is now $127800 roughly 48 days later...

RazorCat
01-25-2018, 05:44 PM
What fund(s) are you currently contributing into?
Are you following any TSP strategists, TSP Calculator?
How frequently do you move between (inter)fund(s)?
Check out the Premium Services page and pick one that suits your investing style. Move your money between funds according to the signals given by whichever service you pick. Trust me, youíll come ahead.

RazorCat
01-25-2018, 06:27 PM
Meant to say youíll come ďoutĒ ahead.

NH-Native
04-29-2018, 06:48 PM
42 years old. Spent 12 years in the private sector and am now starting my 8th year with the government. TSP approximately $1,090,000. This includes transferring all 401K $$ from my private sector days into my tsp account.

TxNative58
06-10-2018, 10:09 PM
Age 60, starting my 30th year, TSP balance 765k, C 55%, S 35% I 10%,,projected retirement date 68 if I stay in shape.

markerbeacon
06-16-2018, 06:24 PM
$748K, 65 years, all in "S" Fund.

chaingunmike
07-23-2018, 10:36 PM
$716,000 TSP (55% C fund, 16% S, 29% G) w/ 28 years federal service at age 58. Shooting for $1 Million+ in next 5 years and when I reach it I’m gone. Also have $100,000 in a Roth IRA and some individual stock (Apple). Crossed the $1,000,000 net worth milestone early this year after paying off mortgage.

SWAVET
07-24-2018, 05:43 AM
Retired end of June 2017 @ age 47 with 28 years of service (including 4 years of active duty) partial withdrawal $240K and transferred to IRA and Roth IRA on 8/31/2017 left $100k ($100,875) in TSP. As of today my Tsp balance is $118,327 (so far 98% match with my Autotracker since two times I was in or out either a day later or earlier than my real account).

I invested only 5% to get matching during my 24 years of service. Always took a loan for the max available from TSP and continue to take out another loan after paid off the prior one (not recommend to anyone). My IRA and Roth IRA balance are increase more than 64% since September of last year by trading options. If this rate continue hopefully I have a chance to increase my balance to million within 3 years (so far I withdrew over $100k from my IRA for vacation and my two kids college expenses, but at least my younger one will be starting her 3rd year this Fall at the University with expect to withdrawal at least $50k to $100K per year). Very difficult to increase balance faster since I have to wait for 2 days settlement on cash accounts.

This week the signal is bullish on SPX with uncertain, but I have OVER 500 Calls contracts open that including APPL (40 contracts), AMZN (10 contracts or to control 1,000 shares or $2.8M with average between $5 to $6K per contract - very expensive that cost between $2k to over $9k per contract for expiration on 07/27 and 08/31 from $2800 to $2880 will close at least 5 to 8 contract before the earnings - note: this is the 1st time that I use so much money on a single stock normally I use around $2k or $2 per contract for 10 contracts), FB (60 contracts, this is another stock that I break my own rule by using more than 5% of the entire account balance), BAC (10 contracts left are free since I closed 10 contracts for 120% profit), FAST, MA, ADBE, LULU, IDTI, MU, SPX, SPY, XBI, VIX (protection and most of the time August is positive on this one) and more. I'm stay on the sideline for my TSP account since I can't closed out within minute as market direction change as needed like my IRA and Roth IRA.

I used 1% or $1k (sometime up to 2% or $2K) by selling the opposite of what my IFT of TSP fund and earned equivalent to more than $100K that I left in my TSP account. Normally I collect any where from 25% to over 100% profit. the expiration is depend on the time frame I was in the fund (This time I bought VIX instead of credit spread)
Example: If I'm in S fund then I sell puts spread of IWM to collect credit
if C fund then sell SPY
if I fund then sell EFA
if F or G fund then sell call spread of SPY, IWM or EFA depend on the one with the most credit

staussfam
08-15-2018, 03:25 PM
Age 58; 27 yrs. Civil Service + 4 yrs Mil. Active that I purchased into FERS. TSP balance: $1.1 mil. Plan to retire 12/19. Have for past 20 years contributed the IRS max. allowed into TSP. Mostly held at C: 60%, S: 20%, I: 20%. Now have some in F and L2020, but still maintaining about C: 55% and S and I at 10% each.

superdave
08-21-2018, 08:48 AM
I'm 54 1/2 and have been a Postal Employee for 29 years. TSP balance is $690k. 100% in the c-fund at this point. I was lucky enough to get out of the stock fund in the early 2000's and again in 2008 and missed most of that down time. Currently weighing my options on the timing of my retirement.

RealMoneyIssues
08-21-2018, 11:23 AM
Daaaaaang... I am soooooo far behind :(

Sent from my S9+ using Tapatalk

PessOptimist
08-24-2018, 12:44 AM
Daaaaaang... I am soooooo far behind :(

Sent from my S9+ using TapatalkBe of good cheer RMI. I got a late start and over 20 years have managed to accumulate $.6 Mil. All is not lost.

PO

Lindoug
08-24-2018, 11:39 AM
$853000, 58 years old, 30 years of service. Getting closer every day!

James48843
08-30-2018, 07:08 PM
$721,358 and 58, with 29 years,10 months and 4 days of service.

Not that I am counting down to 30 years, or anything.

The plan is - probably 3 more years, or till I hit $1 million, which ever comes first, then parachute out to my next adventure.


Sent from my iPhone using TSP Talk Forums (http://r.tapatalk.com/byo?rid=74921)

James48843
08-30-2018, 07:11 PM
I'm 54 1/2 and have been a Postal Employee for 29 years. TSP balance is $690k. 100% in the c-fund at this point. I was lucky enough to get out of the stock fund in the early 2000's and again in 2008 and missed most of that down time. Currently weighing my options on the timing of my retirement.

Hey super Dave- please be sure to let me know when you decide to bail out of stocks. I got trashed in the crash of 87; the pullback of 91, the dot.com bubble of 2000, and got shellacked in the crash of 2008-2009.

So if you got any idea of a good time to move to safety, Iím all ears!!!


Sent from my iPhone using TSP Talk Forums (http://r.tapatalk.com/byo?rid=74921)

TangoMike
09-02-2018, 11:48 PM
Update:Well i retired in 03/2017 and went contractor my balance update is 520k and another 35k in a sep ira; i've been primarily 70%g with the other percentage in s, c, or 2030. I'm pinging about 3.4 - 4.2% a year and I'll take it cuz it lets me sleep at night. I really don't want to touch my tsp till 2022 (62yo then) so hopefully i'll pickup 100k or so in interest. I enjoy this particular thread very much!

Anthony.l
09-11-2018, 01:01 PM
I am 32 and have been contributing to TSP for almost 5 years now. My balance is about 90k, and always looking for information to help for fund selections and timing.

BRJames63
09-12-2018, 09:54 AM
Hi just turned 55. Balance $1,242,000. Been investing in TSP for 31 years. Invest 17K a year. Use to be at the max, but due mostly to laziness on my part have not kept up with the IRS increases to the max limit. My allocations are spread about 75% C/S/I, with mostly in C and the remaining in 25% spread on the out year L funds. When I first started in TSP, I was focusing on being in a position to retire at my MRA of 56 with 1M balance. Although I hit the 1M mark, it is 50/50 on retirement at 56. Most likely, I will wait to 59 when my house is paid. New target is 1.5M

BRJames63
09-12-2018, 10:24 AM
I am 32 and have been contributing to TSP for almost 5 years now. My balance is about 90k, and always looking for information to help for fund selections and timing. Far from an expert, but my advice: Invest the max allowable or as close to max possible, if you can afford it. If you can't, I would encourage you to increase your TSP % contributions as your salary grows. The key is getting to the max (or close to) a soon as you can. As far as fund selections, given your age, I would suggest C and S, with most in C. If you are looking to reduce some of the risk, then you can add some to one of the L funds. However, I would pick the L 2050 fund, if you choose that route. At your age, I would not have anything in G. As far as timing, I would encourage you to view TSP as a long term vehicle. TSP encourages this and has eliminated the ability to "day-trade" via TSP. Don't sweat the ups and downs of the market at your age. With that said, over my 31 years in TSP, I have made short term moves to protect my balances when there have been significant moves in the S&P index, like in 2008. Not worried about perfect timing, but more asset protection. With that said, I don't change how I buy in the TSP. In fact, in those circumstances I increase the opportunity to buy low. Hope that helps.

RazorCat
09-12-2018, 10:42 AM
I am 32 and have been contributing to TSP for almost 5 years now. My balance is about 90k, and always looking for information to help for fund selections and timing.
Max out your contributions to the extent possible each year. At your age, and with a commendable TSP balance, you have the advantage of compound interest working in your favor for literally decades to come. Iím sure other have compounding calculators that they use to project future balances, but this is one I use. https://financial-calculators.com/compound-interest-calculator
You might also want to set up an account in the TSP Autotracker. A valuable tool for keeping up with percentages throughout the year.
Good look young man.

Anthony.l
09-13-2018, 07:00 AM
Thanks for the insightful information BR James and Razor Cat. Seems the most common factor when asking for advice is to max (as much as possible) contributions as early as possible. Glad I have learned this pretty early in my career.

nnuut
09-13-2018, 09:16 AM
I wish I had done that!!

Cactus
09-13-2018, 10:01 AM
I wish I had done that!!

Don't be too hard on yourself, nnuut. If you remember, we weren't allowed to do that when we were younger. The max we were allowed to contribute was 10% back then. That's always irked me because I could have contributed a lot more early on before getting married. By the time they changed that to the IRS limit I was married and had too many obligations in place. I had to wait for step increases and COLA increases to bump mine up to the limit. It's a lot harder to do it that way.

alexreb
09-13-2018, 11:26 AM
Don't be too hard on yourself, nnuut. If you remember, we weren't allowed to do that when we were younger. The max we were allowed to contribute was 10% back then. That's always irked me because I could have contributed a lot more early on before getting married. By the time they changed that to the IRS limit I was married and had too many obligations in place. I had to wait for step increases and COLA increases to bump mine up to the limit. It's a lot harder to do it that way.

You also had a wait period before you could start investing in TSP. I was hired in Oct 1991 but couldnít begin investing until July 1992, 9 months later. Thatís almost an entire year of not being able to invest ☹️.

Cactus
09-13-2018, 04:20 PM
You also had a wait period before you could start investing in TSP. I was hired in Oct 1991 but couldnít begin investing until July 1992, 9 months later. Thatís almost an entire year of not being able to invest ☹️.

That is a real problem with most 401K plans. If there is any kind of required waiting period most people get used to the extra money and it hurts to start contributing. The government did the right thing when they changed it so new employees are automatically started off in the TSP unless they elect not to. A lot of new employees don't even know they have money going in there, so it doesn't hurt. Never had it, so they don't miss it.

mbrogz3000
09-14-2018, 10:59 AM
If you haven't already, your age now is the best time to max out your contributions to $18500 (or just set the bi-weekly contribution to $711). If you still don't have any hard 'home' requirements like a mortgage or child yet, I would go as far as recommending a lifestyle change to do whatever it is you need to do to save that $18500 per year, regardless of whether its affordable. Make the lifestyle affordable.

I'm 38 and retirement wise, I can say that it doesn't really matter whether I work my way up in Government-work any further. Doesn't matter. In my case I'm at a point where I need to decide whether it makes sense to continue donating $18500 or just the minimum of 5% into the TSP since I can't touch it for other investments for another 20ish years. Its a pretty strange mindset to be in.

Save as much as possible, and also conserve a significant portion of brain power for investing or for something else you love on the side that can generate income!

MrBill
09-14-2018, 10:38 PM
You figured it out, mbrogz3000. Youíve reached the point that managing your TSP is more beneficial than working to increase your high 3 (maybe soon to be high 5).


I just retired this year at age 56 and my EBIS estimates have been telling me that it has been costing me money to go to work every year since age 51. Itís been hard to stay motivated the last 5 years knowing that. Several co-workers I left behind that have not reached their MRA have come to the same conclusion and have the same motivational struggles I had. Now I just try to remember what day of the week it is.

I reduced my TSP to 5% the last 7 years I worked. Doing more didnít really affect the TSP total when I retired. Instead, I bought a new car for the wife and a truck for me. I have been driving beaters to work for 34 years so I could contribute more into TSP when I was younger. Itís nice having a new vehicle. The money I put in back in 1987 is doing a lot more for me now than what I contributed in my last pay check. I have found TSPTalk helpful in managing my TSP account. I have been a member of one of the Premium services for a few years and have benefited from the additional insight it provides.


It is not a strange mindset to be in. It eventually becomes reality.

superdave
09-17-2018, 10:42 AM
Hey super Dave- please be sure to let me know when you decide to bail out of stocks. I got trashed in the crash of 87; the pullback of 91, the dot.com bubble of 2000, and got shellacked in the crash of 2008-2009.

So if you got any idea of a good time to move to safety, Iím all ears!!!


Sent from my iPhone using TSP Talk Forums (http://r.tapatalk.com/byo?rid=74921)

I don't claim to be an expert, but sure. I used to have a much better feel than I do now. What has driven the market for ages is not moving it like it used to. I feel like we are getting dangerously close to a correction, but this is the time of year that stocks generally ramp up. I'm really going to look closely in March 2019 or so.

superdave
09-17-2018, 10:49 AM
I am 32 and have been contributing to TSP for almost 5 years now. My balance is about 90k, and always looking for information to help for fund selections and timing.

I don't know what percentage you are contributing, so this may not be helpful. There is a lot of talk here of maxing out at the $18k allowed. Everybody can't do that. You really need to at least be doing the 5% that is matched, or you are leaving money on the table. If you start with that, and as you get pay increases, increase contribution 1% or so a year until you get to 10%, you'll never miss the money. I'm 54 now and I have pretty much always done the 5%. I'd be so much better off if I had increased it in my early years gradually up to 10%. It really wouldn't be a lot of help to do now for me. The bulk of your TSP balance at retirement will be the result of what you contribute the first half of your career and the compounded earnings from that.

I've been in 29 years and contributing 5% and my balance is $704k. If I had been doing 10%, that would have been right at a million.

chadbixby
02-18-2020, 06:57 AM
This is such a good thread! Any updates out there?

Me:

Current Age: 44
Current TSP Balance: $405,000
Years of Service: 26
Planned Retirement Age: 58 (Hopefully)
TSP Strategy: (C-70%, S-20%, I-10%)
Contribution: Max ($19,500 annually)
Grade - GS14
Planned TSP Balance at Retirement: $1.4M

(always open to any tips/advice to make my portfolio better!)

I notice that a lot of you are 100% in the C fund. Is that recommended?

chadbixby
02-18-2020, 08:01 AM
I lied... I forgot I changed my TSP Strategy and cannot figure out how to edit my post anymore.

Here is the current distribution:

TSP Strategy: (C-55%, S-40%, I-5%)

Let me know if anyone thinks I should make any adjustments.

Mikeyjo
02-19-2020, 10:19 AM
Mine are at
C-34%, S-33%, I-33%

Like you also wondering if that's a good choice considering events in China

chadbixby
02-19-2020, 10:29 AM
Exactly!

James48843
02-19-2020, 03:08 PM
Mine are at
C-34%, S-33%, I-33%

Like you also wondering if that's a good choice considering events in China

Just understand that at the current time, the "I" fund has a high concentration of funds in Japan- it's the stock index of major industrialized nations, and does NOT include any developing markets +(like China, India, Pakistan, etc). It is mostly Japan, along with major European nations. If you are ok with that- that's fine. Japan has underperformed for the last 25 years.

chadbixby
02-19-2020, 04:28 PM
Just understand that at the current time, the "I" fund has a high concentration of funds in Japan- it's the stock index of major industrialized nations, and does NOT include any developing markets +(like China, India, Pakistan, etc). It is mostly Japan, along with major European nations. If you are ok with that- that's fine. Japan has underperformed for the last 25 years.


Would you recommend putting everything in C & S then and not the I? Or is a diverse portfolio still a thing? Thanks!

Bullitt
02-19-2020, 07:12 PM
I'm 46 and only have around $80,000 in my TSP act :sick:. I will work well into my 70s. I'll be aggressive with my investments to try to catch up to where I think I should be.

Be aggressive with what you can control - your savings.

Comparing how much you have saved for retirement compared to others your age is a fruitless endeavor. Everyone's needs and lifestyles are different.

gibsonman
02-21-2020, 06:48 PM
I look at my TSP as not required for retirement, my pension (topped out GS-15), plus SS, plus VA pension + no debt is plenty...not to mention the wifes stuff

James48843
02-21-2020, 07:24 PM
Would you recommend putting everything in C & S then and not the I? Or is a diverse portfolio still a thing? Thanks!

I canít recommend ANY portfolio balance for you- only YOU can decide what you are comfortable with. Big or small, foreign or domestic, stocks or bonds is a decision only you can make.

If you are not comfortable deciding where you want to be, there is nothing wrong with using an age appropriate ďLĒ fund either. Lots of folks have found those to be helpful in their quest to build a long term nest egg.
Good luck!


Sent from my iPhone using TSP Talk Forums (http://r.tapatalk.com/byo?rid=74921)

bjean
02-22-2020, 12:11 PM
.81 %. For me not a good year yet, I have been following free market analysis and his predictions only are correct 50% of the time!

bmneveu
04-12-2020, 01:22 PM
Closing in on 50K and 33yo. Definitely one of those this month, hopefully both!

flalaw97
07-10-2020, 04:26 PM
$375K and 53

Globalpack
07-19-2020, 08:36 AM
July 2020 Update:
50 yrs old. $330K
Moved balance to G Fund to avoid corona correction. Then near bottom 90% S fund, 10% C fund.

Boghie
07-19-2020, 09:15 AM
Based on my previous entries I'm right on target:

Age: 56
Balance: $607K (as of 2019/12/29)
Investing: Alternate between three allocations (Conservative, Normal, Aggressive)
Expected Balance at age 65 (using Quicken and DinkyTown.Net):

Retirement Age: 65
Expected Return: 8.00% - This is under my IRR since 2004.
Expected Inflation: 3.0% - I still expect very muted inflation.
Expected Contributions: 20% of Gross Salary, 15% from me, 5% match
Expected Balance: $1.452 million
Expected Annual Withdraw (20 years): $84K
Expected Annual Withdraw (30 years): $68K


Happy Hunting...

Tim-shot
07-19-2020, 11:02 AM
Iím 57 with 31 years of service. I have $1,211,000 in the TSP. I have contributed 15% and with the 5% match for about 20 years. I put in half of my raises or step increases until I got to 15%. Plan on retiring next spring or about 8 months or so.

chaingunmike
08-15-2020, 06:29 PM
61 yo with 30 years service & GS-13. $910k & retiring late 2021 when it (hopefully) hits $1 million. 52% C, 11% S, 20% F, 17% G. Stood my ground and rode out the March Coronavirus market meltdown, made zero changes but kept up biweekly contributions. Balance is now $30k higher than before the meltdown. Didnít max out contributions until 3 years ago but always got the 5% match even in early years. Will contribute the max until the bitter end. Biweekly contribution has always been 100% C and still is.

edfong
08-16-2020, 01:13 PM
Age 59 years old, retired on small, very small pension with only 16 years federal service, spent most of my working life with contractors and private industry. So my TSP balance is $400 on top of my IRA.

petemalo
08-18-2020, 11:06 PM
Age 47, 25 years in service as GS14, 28 years in army reservists as an E8, 350,000 in tsp, all in CSI. Plan to retire at the age of 57

Seiko141
08-19-2020, 09:44 AM
Age- 60 retired in 2016 with 28 yrs of service and $1,120,000 in TSP. I withdraw $3500 per month from TSP plus retirement pay and supplement. Paid off mortgage ($150K). Paying for two kids in college, traveling wife does not work. Current balance in TSP $900,000. Current allocation 50% C fund, 50% S fund. :-)

LTJPFED
08-19-2020, 10:49 AM
I'm 50 but no where close to anything good. Ashamed of my balance. 23 years of service and have had a couple things happened that I needed to take a loans against my tsp. Everyone has life things so crap happens. I just would like to have more money because I am pretty sure I'll be working until I'm 70 which I'm ok with at this point. No kids and currently no mortgage. Current wife and I are trying to save money for a home but struggling to save. I am not in GS scale so pretty much stuck, capped out, unless I try and get a new job. My problem is I'm a very faithful and committed person, some may say just afraid of trying something new but I don't see if that way. Anyway enough personal stuff.

Just seeing everyone's balances makes me feel even less good about my situation. Not looking for sympathy or anything at all just was stating a fact that my balance is pretty pathetic. I checked this morning and I'm still 100% G, which I knew. Made that 1 transfer last month but missed out on the move higher here in August because thought we weren't moving up. UGH. My account is so low that I get nervous about moving it over to C/S and losing thousands because I can't afford to lose it. Not sure if that makes sense because I know you have to put it there to make money but you can lose it too. Yes, got burned a couple times as well in timing issues.

At least seeing this gives me something to shoot for. If I can somehow get to 500k when I retire I guess that would be good at this point. That is better than nothing. So I will continue to push to increase my percentages, I can't afford putting in the max, just can't. But I could maybe put that COLA in if we get it. Put in that extra percent or two. Maybe then I could get closer to maxing that way.

Bane
08-19-2020, 11:01 AM
Great profile pic, chaingunmike!

Bullitt
08-19-2020, 11:42 AM
Just seeing everyone's balances makes me feel even less good about my situation. Yes, got burned a couple times as well in timing issues.

Other people's balances are not important. I'm impressed by those with $1M in TSP in their 40's not 60's. The ones claiming you need $1M to retire are usually the investment companies that want your money.

Figure out how much you will need per month. No mortgage is good, but are you paying rent? What expenses do you project in the future? These are things only you can answer.

If you've got 10-20 years to go and continue to contribute to TSP, see where you'd be. If you're not going to hit your goal, then you need to take a good hard look at your spending.

I'm not a financial advisor, but I'd say dump all that money into an L fund - today. Before noon. Forget timing. Keep contributing through highs and lows and get on with your life.

Positive note, if you work until 70, you'll get a heck of a lot more than those who take SS at the earliest date possible.

fisherhouse
08-19-2020, 12:03 PM
$225K and 36 years old. I'm active duty military and will be eligible to retire in a couple years. Decisions, decisions....

flalaw97
08-19-2020, 01:22 PM
I checked this morning and I'm still 100% G, which I knew. Made that 1 transfer last month but missed out on the move higher here in August because thought we weren't moving up. UGH. My account is so low that I get nervous about moving it over to C/S and losing thousands because I can't afford to lose it. Not sure if that makes sense because I know you have to put it there to make money but you can lose it too. Yes, got burned a couple times as well in timing issues.

Based on your description of yourself - looks like you have time to weather some of these losses should they happen, in exhange for a much bigger upside. Since you are not able to use it now, "can't afford to lose it" shouldn't stress you out too much - When S or C dip, you haven't lost anything until you withdraw it or move it to the G. Keeping it in G for any length of time means you are losing thousands to inflation. Maximize what contributions you can and remember that if you are able to get to the point where you want to buy that house and you don't have the deposit available, you can take a residential loan from the money you have put in and hopefully it will have gained from being in the stock funds. You can even think of it that way - the extra that you are putting into your TSP is for your downpayment on your house. If you can avoid taking a loan from your TSP you should but it may help your risk aversion to know that you can. I have taken loans to cover me when shutdown occurred and to make up difference in downpayment needed to avoid mortgage insurance. Also given your aversion to risk and nervousness about moving money into and out of stocks, I think that Bullit's suggestion to just move it into the appropriate L fund and let it grow is a good option. It is like having a built in money manager that, over time, has been proven to be pretty effective. Good luck!

rangerray
08-19-2020, 02:13 PM
I have about $330,000 in my account with 26 years working and am relatively ashamed at my balance as well. For the first half of my career I only contributed 5% to get the matching funds and have only put in 10% of my salary for about 10 or 12 years. I recommend to new employees to put in at least 10% from the start if they can swing it. I did at least have my money in an L-Fund for a good part of the time, but I consider it a bad mistake that I was so "hands off" during the years that it was most crucial. For example, I rode the 2008 crash all the way to the bottom (thank goodness I didn't sell at the bottom).

2 things:

- Don't give up, especially if you plan to keep working way past when you are eligible to retire. When you finally get 200-250K in your account, those returns really make a huge difference.

- Don't base your success on those around you. Your needs are unique. Though I may retire with under $400,000 in my TSP, I will be completely debt free. I don't need as much money to live in retirement as I do while working. I will pick up a "fun" job to put more spending money in my pocket.

I WILL CONTINUE TO MANAGE MY TSP IN RETIREMENT. Though, I won't be contributing, I've still got a good balance to build with. Retirement is not the end.

ALRetiree
08-19-2020, 05:50 PM
Hi everyone, just registered to the forums but have read them from time to time.

I'm 55 and my TSP is $810,000. I'm planning to retire in 12 months with 33 years service, 25 in civilian service. Have my TSP fairly conservative the last year but still invested probably at least 50% in stocks. I like reading this thread because it gives me an idea of where I stand going into retirement. You never know if you have "enough" but I guess that's relative to what you want to do.

tsptalk
08-19-2020, 08:27 PM
Welcome ALRetiree!

ALRetiree
08-19-2020, 09:12 PM
Welcome ALRetiree!


Thanks Tom!

Quips
08-22-2020, 01:00 PM
I haven't been here in a very long time. Age 66 still working w/ TSP barely into seven digits. Very aggressive position at the moment in equities (90/10 ... 10% of that 90 in the I fund). I plan to reallocate into a very defensive posture by the end of next week, just before Apple splits 4-1 on Aug. 27. I feel a 10% correction is due sometime in Sept or Oct with little upside remaining.

Apple is going parabolic now, and that's not good. S&P market breadth is horrible with five equities accounting for 22-23% of its total $ assets. The transition from Apple, Microsoft, Facebook, Alphabet & Amazon into more value oriented names will not be smooth. The Covid economy will continue until a vaccine is developed and the transition very bumpy into the other 495 S&P companies

chaingunmike
08-23-2020, 07:22 PM
Great profile pic, chaingunmike!

Thank you Bane!

I just wanted to offer some advice to those who fear the C, S & I funds. In a word, don’t. I recommend that you read the Tony Robbins book “Unshakeable.” In that book he states that stocks have always trended up for the last 50 years. And there will always be large declines and bear markets, but eventually stocks always recover and start their upward climb again. The one thing that I remember the most from the book is this- the greatest danger is being OUT of the market. Sitting on the sidelines (out of stocks) is the costliest mistake of all. You can’t win by sitting on the bench. You HAVE to be in the game. And you have to take the losses from time to time so that you can be there when the gains come. This philosophy has guided my TSP investing for the last three years and the book’s advice on riding out bear markets really helped me through the March coronavirus market meltdown.

So my advice to those who are fearful of stocks is, do whatever you have to do in order to convince yourself to keep investing the bulk of your TSP in CSI. This is especially true for anyone who has 10 or more years to go before retirement. NOW is the time to be making those returns that you will live on when you’re 70.

I will leave you with this quote: “There is the risk that you can’t afford to take, and then there is the risk that you can’t afford not to take.” Investing in the CSI funds is the latter.

bmneveu
08-24-2020, 05:54 AM
Age- 60 retired in 2016 with 28 yrs of service and $1,120,000 in TSP. I withdraw $3500 per month from TSP plus retirement pay and supplement. Paid off mortgage ($150K). Paying for two kids in college, traveling wife does not work. Current balance in TSP $900,000. Current allocation 50% C fund, 50% S fund. :-)

Wow, 100% in stocks in retirement. Good for you, sir! I imagine you have done very well for yourself over these bull years with that approach. Every broker on the planet would probably tell you to be more conservative with your money at your age, but I suppose it is easier to stay in the game when you have other sources of income like your pension and no mortgage. Congrats!

bmneveu
08-24-2020, 06:08 AM
I'm not a financial advisor, but I'd say dump all that money into an L fund - today. Before noon. Forget timing. Keep contributing through highs and lows and get on with your life.

Couldn't agree more. Get in now and forget about the stock market for 20 years. If you are one to worry about your retirement every time you see the market down 1% on the day, then stop looking at the market. Set it and forget it.

Also, its important to note that you have to set both your "allocation" and "contributions" to the new fund. Allocation is your current total balance, while contributions are what come out of your paychecks. They are separate in TSP and have to be adjusted individually. If you move your allocation into the L fund but leave your contributions going to G fund, you are going to miss out on a ton of money in the long run. So set them both, and go enjoy life.

TSPuser
08-27-2020, 09:52 PM
Folks a 10+ year reader of the TSP talk, did not post more than a couple of times. I retired in June at age 61 with 36+ years of FERS service. TSP now equals ~$1.3+, was 100% S, my 1 year gain is ~36%, got cold feet and went 50% S, 30% C and 20% F. Received first TSP paycheck at $3K / month. Unsure of road ahead and yes the commercial fund managers want it all.
thanks for all the terrific insights and lessons learned. Stay in TSP or go. After MUCH internal head-space discussion I stayed put (for now).

Good luck to those in route!

TSPuser
08-27-2020, 10:15 PM
TWO GRAPHICS THAT HAVE HELPED MY INFORMED CHOICES ARE 1) the PER SHARE VALUATION RATIO BETWEEN SPECIFIC FUNDS TO SHOW TRENDING BETWEEN FUND VALUATIONS and 2) VISUAL SLOPE, DIRECTION, AND CLOSING DAY PRICE OF FUNDS FOR S, C, I, L2050, L, F, and G OVER THE YEARS. AN EXCEL WORKBOOK DRIVES THE DAILY GRAPHICS UPDATE 4702447025

James48843
08-28-2020, 08:04 AM
What on your first chart is "GC"? is that a 50-50 mix or something?

TSPuser
08-28-2020, 11:34 AM
Hi James48843 - the first chart on the left, with the legend titled GC, shows the calculated time history comparative valuation of a share of the G fund in contrast to a share of the C fund. You can see how this valuation has changed over time, as one would expect as the C Fund is invested in a stock index fund that tracks the Standard & Poor's 500 (S&P 500) Index, a broad market index made up of the stocks of 500 large to medium-sized U.S. companies rather than the G fund that invests in a special non-marketable treasury security issued specifically for the TSP by the U.S. government. Hope this helps. I used this to assess when it makes sense to shift some $$ into our out of a holding.

coquina
10-01-2020, 07:41 AM
Just turned 55. Have been contributing to the contribution limit for 30 of my 33 years in government. With a $965K balance at the end of Sep 2020 and plans to retire at the end of 2021 I have 85% in the L Income Fund and 5% each in the C, S, I funds. My future contributions are 100% US equities.


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bmneveu
10-01-2020, 07:50 AM
Just turned 55. Have been contributing to the contribution limit for 30 of my 33 years in government. With a $965K balance at the end of Sep 2020 and plans to retire at the end of 2021 I have 85% in the L Income Fund and 5% each in the C, S, I funds. My future contributions are 100% US equities.


Coquina, congrats on doing so well with your retirement account and hopefully you hit that $1M milestone soon!

Radarcontact
10-10-2020, 09:43 PM
Almost 48 yrs old. ATC 18yrs. Eligible to retire in 2 years. Mandatory in 8 yrs. Balance as of 10/9/20 899k. Blessed

weatherweenie
10-11-2020, 07:33 AM
Maxing out the contribution 30 of 33 years is awesome!


Just turned 55. Have been contributing to the contribution limit for 30 of my 33 years in government. With a $965K balance at the end of Sep 2020 and plans to retire at the end of 2021 I have 85% in the L Income Fund and 5% each in the C, S, I funds. My future contributions are 100% US equities.


Sent from my iPhone using TSP Talk Forums (http://r.tapatalk.com/byo?rid=74921)