The good news headline is that membership in the Thrift Savings Plans’ Millionaires Club has jumped to 98,879 and is still climbing. Equally good, most of the seven-figure clubbers aren’t wealthy lawyers turned federal judges. Or political appointees or members of Congress. Most are ordinary, upper income feds who’ve been investing for around 30%. Most maxed out their contributions to get the magical government 5% match. And most had most or all of their money in the stock indexed C, S and I funds. And left it there and continued to buy those funds when the market crashed in ’08-’09.
The sub-headline is that there about six million current and retired feds who are NOT millionaires. But many are on the verge. Checkout where you stand as of June 30, 2021:
Many feds consider the G fund (Treasury securities) as the safe investment because they never have a negative return. Critics point out that the G-fund hasn’t, for years, had a good return either. In fact it is mostly outperformed by the F fund (bonds) which as of now has a negative return.
So is it safe to put your retirement nest egg in the never-has-a-bad-day (or many good days) G fund? Or go for the stock index or L funds which go up and down but mostly up in recent years?
Financial planner Arthur Stein has definite ideas about what “safe” means when it comes to building a retirement fund. He’ll be my guest today at 10 a.m. on our Your Turn. The show starts at 10 a.m. EDT. You can stream it at www.federalnewsnetwork.com...
Read Full Story: https://federalnewsnetwork.com/mike-causey-federal-report/2021/09/tsp-roadmap-when-if-ever-should-you-play-it-safe/
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.