How to Become a TSP Millionaire as a Government Employee or Military

[@FIREPsyChat]

Do you have what it takes to join the TSP millionaire club? Get your FREE FIRE resources at www.firepsychat.com/contact!

[@silverowlthrifter]

Happy to be a TSP Millionaire, listened to my mom and dollar cost averaged 100% C S and I (mostly C) fund until last year now getting close to retirement and going to move about 30% total( already have 20% in there) to G fund. Will let the rest sit and keep growning. We maxed out our investments for 20 years.

[@FIREPsyChat]

That is so awesome and congratulations! You just proved my point that it works 😁

[@kurpal8904]

Did you invest under ROTH TSP and ROTH IRA?

[@silverowlthrifter]

@@kurpal8904 no

[@StevenTorres.NYC-CA]

@@silverowlthrifter by just investing it and letting it sit?

[@silverowlthrifter]

@@StevenTorres.NYC-CA Yes, we maxed out our contributions for 20 years, and then maxed out the catch up contributions. Now we are 20% G fund and 80% C Fund...

[@kenneencail]

Nice video; reallyed like the background music. I've been in the military for 12 years but just start contributing to my TSP last year cause I didn't really understand finances glad you have these resources out there for folks like me, who dont know any better.

[@FIREPsyChat]

I’m trying to spread the words! I didn’t know any better when I first joined too

[@1911gsb9365]

I currently have my TSP in 100% C Fund…I am 17 years away from retirement age…Thank you for sharing these videos. They have been very helpful in my research of TSP retirement.

[@globright9127]

This is great information. One of the best and actually makes sense! Also very practical information!

[@dshep832]

Thanks for sharing! I’d love to hear from the TSP person that has 11 million in their account.

[@FIREPsyChat]

I know right!

[@DYang96]

I got 80% in c and 20% s!

[@GNYC77]

💯

[@K95747]

Great honest information! I am proud of you my brother.

[@FIREPsyChat]

Appreciate you!

[@Jcruz388]

"Government employees are underpaid compared to private sector equivalents." I'm a government employee myself, and I'll tell you, a lot of my coworkers are OVERPAID compared to the work I see from them.

[@akeemg7711]

😂 funny

[@rasulsamad5860]

This is true

[@tangoone4669]

Currently I have 80% in the C, 10% in the S and I with $358,867.74. At 22 years of service, I kept it in the G fund for the most part until I recently moved it to the C. Not retiring any time soon. Am I in the best position for it to grown or should I drop the I fund?

[@anthonyh465]

Great info! Thank you! I’ve been in the military for a little under 3 years now. Been staying in C fund with about 20-30% of investments, rest going into G fund. Should I invest more? Especially with going into the new year? Most if not all funds have had a negative return and I’m still learning as I go! Thank you!

[@FIREPsyChat]

Remember that your retirement is probably not for another 20-30 years, right? Look at the historical returns for 20-30 years instead of what’s going on short term. Investing more now will pay off in the long run. Look up my other TSP video specifically for the military and it should help you ✌️

[@johnp2909]

I'm assuming you are very young. You should put all of it on c s I fund for now. Let it ride. Specially now it's very low price. It will grow so much and like he said you will be a millionaire

[@kevinmahoney4000]

You are probably young... IMO 100% C fund for you. Put in most you can and still pay bills & enjoy life. That for the next 20 to 25 years

[@dannydvaughn]

Thank you for the tips and info, I appreciate it.

[@esenciadelcaribe]

As a 23 year old service member, I am investing in C(70%) and S(30%) with a 10% contribution. Hopefully I’ll become a millionaire in the next 17 years

[@cohoanglervancouverwa6755]

When the markets are down, your TSP is losing value but it’s not losing money. So, when the market is down, as it is now, there is only one thing to do: BUY! Buy when prices (markets) are down. So when the markets go back up, the value of your portfolio will increase dramatically. That’s how you get to $1M.

[@FIREPsyChat]

The classic buy low sell high strategy but people abandon it when the market gets low

[@cohoanglervancouverwa6755]

@@FIREPsyChat Thanks. My TSP is almost $2M. 35 years in TSP. Straight C-Fund. Just recently moved to L funds since retirement is very close.

[@FIREPsyChat]

Hey congratulations to a multi millionaire retiree! 🍻

[@homehere9817]

What do you mean buy?! Do you mean move my money to the G fund? Or I fund?

[@cohoanglervancouverwa6755]

@@homehere9817 If you’re not close to retirement, put all your TSP into the C fund. Leave it there. When the markets are down, your TSP will lose value but you’re not losing money as long as you leave it alone. You will be buying shares in the C fund (the TSP managers do this for you) when the prices are lower. Once the markets go back up, your portfolio will be worth considerably more.

[@dlyroadrunner]

Thanks for this video! When I started, I was in the G fund for the longest time 🤦🏿‍♂️

[@FIREPsyChat]

You aren’t the only one 😅

[@InspireRise300]

Awesome, thank you so much!

[@maxmake254]

Hi, great job on the videos, and thank you for sharing.I have maxed out my tsp since day one, and got to $1.75M on 2020 when the market went down. Currently my balance is $1.56M. The only regret is that I never consider ROTH TSP. All my contributions have been to traditional tsp, unfortunately. I wish I knew what I know now and would have at least 1/2 of that money in Roth. Would you kindly let me know how I would be able to get a copy of your spreadsheet (calculations)? I would love the way it response to your inputs. Thank you again.

[@eric2394]

Which fund were u in?

[@FIREPsyChat]

Well done! Roth or not, I would take $1.75M any day. For the spreadsheets, please visit www.firepsychat.com/resources

[@dshep832]

Thanks for sharing. Where did you find the information about number of TSP millionaires? Also, where did you find the Excel spreadsheet on TSP?

[@FIREPsyChat]

FRTIB. I made the spreadsheet for my projections

[@dshep832]

@@FIREPsyChat you did an outstanding job! I’m going to try to do something similar, thanks!

[@22TVJ]

I’m new to the whole TSP & I need guidance/advice to set myself up for 2050.. So far I have L, G, & F fund..

[@FIREPsyChat]

You can schedule a complimentary coaching session with us at www.firepsychat.com/coaching 🙌

[@iancanava7033]

i would recommend using the c fund and s fund as those have the best rate of returns compared to the G and F fund

[@Martin-og9zg]

Any TSP investments ever return over 13% on average (over a 15-20 year span)? 43 with ~45k in retirement funds (rolling over roth 401k from blackrock invests, yes I hate that too into Roth TSP soon)

[@miguelresto8169]

Hello! Thanks for your content! AD military members don’t qualify for HSA, correct?

[@FIREPsyChat]

Hey! As far as I know that’s correct because of Tricare

[@ndb407]

Great video and explanation but to address one thing, starting out you will not get the 5% employee match until you hit your 2 year mark but you can still put money in the TSP, you just wouldn’t get that extra 5% .

[@FIREPsyChat]

Good point however it also depends on the agency or department you work for

[@ndb407]

@@FIREPsyChat Thanks for the clarification, I'm active duty military and just started getting the additional 5%, I didn't realize that was the same for all agencies.

[@gimmpy91]

I feel bad for anyone who switched over or is receiving the BRS because they are new. I kept my High 3. Id rather keep the extra $500 a month at 41.

[@RC94332]

Very good video

[@FIREPsyChat]

Thank you!

[@Maybemaybexyz]

Is that spreadsheet avaiable?

[@fauxmixedhair]

Not sure if you figured it out but here's how he's calculating the columns (beginning balance + annual contribution) * annual return = interest interest + (beginning balance + annual contribution) = total with interest The next year your beginning balance is the previous year's total with interest. Then you do it all over again.

[@todwinminas9512]

I'm a new enlisted guy and I just put 10% on my traditional and 10% on my roth, is that a good move?

[@FIREPsyChat]

TSP gives you a 100% match when you contribute 5% to either Traditional or Roth. So if you do a 5% personal contribution, then your employer gives you another 5% contribution of your gross income. You can download my free TSP calculator by visiting www.firepsychat.com/resources.

[@glasshalffull2930]

Do 100% in the C Fund or maybe 80% C Fund and 20% S Fund.

[@TheOne-dw3ys]

Is Roth tsp better than traditional tsp at the age of 32?

[@FIREPsyChat]

It’s not about the age. Do you want to pay taxes now or pay taxes when you’re retired?

[@TheOne-dw3ys]

@@FIREPsyChat now I guess but I want to get the most out of my 401k

[@alrocky]

@@TheOne-dw3ys Contribute to Roth TSP when in relatively low tax backet and contribute to traditional TSP when in relatively high tax bracket.

[@RC94332]

Would you recommend doing 100% Roth in a high tax state like CA? GS 13 with OT… I definitely don’t plan to stay in ca much longer nor in retirement

[@FIREPsyChat]

Do you expect to have higher or lower income in retirement?

[@RC94332]

@@FIREPsyChat most likely lower… FERS will be 34-39%. After that I plan to be out of the US completely

[@RC94332]

But I definitely don’t think US taxes will be going lower any time soon

[@FIREPsyChat]

It really depends on your other income sources too. You can also contact us by visiting www.firepsychat.com/introductory

[@alrocky]

@@RC94332 Default option is $20,500 traditional TSP + $6,000 Roth IRA

[@kurpal8904]

Is it correct that government Matches 5% only under the traditional TSP (not ROTH)?

[@alrocky]

Gov 5% match goes toward your traditional TSP balance regardless of whether you contribute to traditional or Roth TSP. This may change next year.

[@shizzyB12]

I'm currently serving I'm happy I've started my tsp my first 2 yrs in my military career and I have 100% invested have 6 yrs of service and now trying to figure out where else should I send the TSP to grow it before I'm 45 or 40

[@FIREPsyChat]

Nice! Well done

[@briananderson9242]

Question for anyone that can help - my spouse age 38 has 225k in TSP all C fund from 15 years of government service. She may be calling it a career to be a stay at home mom. Is it realistic to think that amount may grow to 1 million in 16-17 years? I was thinking an average 9 percent rate of return and if she hits that number earlier move everything to G fund and be done with the stock market. Spoke with a financial advisor who told me that this was unrealistic. Thoughts?

[@FIREPsyChat]

At age 38, $225K with a 9% average annual return will reach the balance of $1 Million by age 55. The only variable is the 9% return. We could see a 7%, 8%, or 10%, right? Why did your financial advisor say that it's unrealistic? Also, by moving your entire fund from C to G fund, how long do you anticipate that TSP to last?

[@briananderson9242]

Thank you so much for taking the time to respond! Really want to state how much I appreciate your channel and words of wisdom! Advisor was pushing very conservative numbers and running 5-7 percent rate of return. I’m thinking 9 percent is average/realistic for the C fund. It was recently decided to do the stay at home mother part so for the TSP can’t rely on contributions and just market growth of course so advisor really burst my bubble a bit. Do you feel that 9 percent is a fair number for C fund growth long term (17-18 years)? The TSP will last for our lifetime. We will be going with a MetLife joint annuity. Based on our ages at that time (57 and 55) with 1 million it will provide $4500-$5200 a month which will be close to her current salary.

[@kurpal8904]

ROTH IRA is same as ROTH TSP? Or

[@FIREPsyChat]

Nope they're completely separate!

[@KrypticPatriot]

What happens in 2022 when your TSP averages a -30% ?

[@FIREPsyChat]

Then I’m buying TSP funds with a 30% discount!

[@johnp2909]

It never stays negative forever. Buy more while it's cheap.

[@immigrationlaw1984]

But stocks are down how can you invest in I, C, and S funds? You would be losing all the money

[@FIREPsyChat]

Sounds like they’re selling at a discount! Do you buy when the price is high or low?

[@immigrationlaw1984]

@@FIREPsyChat no. I invest I have Roth IRA. I have 75% stocks, 20% cash, and 5% bonds.

[@epauloconnor]

I thought it was $6,000 for Roth and $20,500 for Traditional... you're putting $20,500 POST TAX funds into your TSP?

[@FIREPsyChat]

This video is from 2022. The contribution limit for the TSP is $22,500 and Roth IRA is $6,500. You can do either Roth or Traditional for your TSP as long as it’s totaled at $22,500. And yes I’m putting $22,500 into my post tax or Roth TSP in 2023

[@FuturesWithKT]

@@FIREPsyChat Thanks for commenting with the 2023 contribution limits. Why are you placing all of your TSP contributions into the Roth TSP? Seeking to better understand your strategy.

[@maxmake254]

Hi, great job on the videos, and thank you for sharing.I have maxed out my tsp since day one, and got to $1.75M on 2020 when the market went down. Currently my balance is $1.56M. The only regret is that I never consider ROTH TSP. All my contributions have been to traditional tsp, unfortunately. I wish I knew what I know now and would have at least 1/2 of that money in Roth. Would you kindly let me know how I would be able to get a copy of your spreadsheet (calculations)? I would love the way it response to your inputs. Thank you again.

[@Roh-c8e]

What the heck is a TSP?

[@CaliKidd1001]

Same thing as 401k just for government and military workers