Unless the stock market tanks, big time, during the next 51 days the number of federal Thrift Savings Plan millionaires is expected to skyrocket.
At the current pace, some long-time federal investors with relatively modest salaries will become double millionaires. And a few will move into the $3 million-plus category, or move into the $3 million club.
As of June 30, 2021 there were 98,879 millionaires. That was up from 45,219 in June of 2020.
With few exceptions, their investment “secret” is not much of a secret. Buy and hold, through good times and bad. Max out contributions to ensure you get the full 5% match offered most workers who are under the FERS retirement plan. And Stick with the stock indexed C-fund ( S&P 500 large cap stocks) and the small cap market represented by the S-fund.
During the 2008-9 Recession, tens of thousands of TSP holders moved from stocks into what many felt was a much safer — as in less volatile — place: The G-fund. They invested in special government securities.
Many also shifted their future allocations to the G-fund, even as the others — especially the C-fund and S-fund — were on “sale” (compared to their pre-recession value) by more than 30%. Many who rode out the recession entered it with modest account balances, but emerged with massive gains.
And now, number of federal and postal...
Read Full Story: https://federalnewsnetwork.com/mike-causey-federal-report/2021/08/bumper-crop-of-tsp-millionaires-ahead/
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