Who is a Govie and a Millionaire?

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This topic contains 8 replies, has 5 voices, and was last updated by  Andrew Krzmarzick 8 years ago.

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  • #103252

    Steve Ressler
    Keymaster

    One extreme federal saver has more than $3 million tucked away for retirement.

    Crazy…


    Full story: http://www.govexec.com/story_page.cfm?articleid=45514&dcn=e_gvet

  • #103268

    I like the comment where someone asks about what they did…good question. While you can’t mirror exactly, there are probably some lessons learned there that can be replicated…

  • #103266

    Nichole Henley
    Participant

    haha!! I saw this too and was like “whaaaaaaaa”

  • #103264

    Unintended consequence of this article: Might add fuel to the fire of people asking for the slashing of Fed pay/benefits or downsizing.

  • #103262

    Henry Brown
    Participant

    lets see about 2,000,000 federal employees of which 10,000 employees who have 500,000 dollars in their retirement/TSP account (less than 1/2 of 1 Percent) which they could have had since 1986 which if you massage numbers (I know numbers never lie just liars use numbers) 500,000 /24 = 21,000 per year and at least 5 percent of that was “provided” by the government to account for the fact that FERS employees only get a little over 1 percent per year in their “retirement” account…

    Would offer that if anyone uses this information to move forward with downsizing/pay cutting that perhaps they would intend to do it any case and numbers are not going to make a lick of difference to those who want to lower the cost of government by any means necessary.

  • #103260

    I love these stories about the “Millionaires Next Door”. Often the people who have money are not the ones who appear to. While they may spend money on nicer items, entertainment, etc., they do not necessarily have the biggest houses, fanciest cars, or most lavish vacations. These individuals look for value, and they save for a rainy day, education for their children, retirement, etc.

  • #103258

    Paul
    Participant

    It is shame that more people are not using this benefit. I am new to the gov and based on 5% I calculate that my tsp will be worth somewhere between 8k and 10k at the end of year 2. If you keep this plan up it would be easy for someone who can devote 5% consistantly to get to the millionare level especially if you can earn at least 10% return each year. The key to success I have always taught is goal is double digit return long term. There will be years where you may get 18% and there will be years when you get 5%. The key is long term.

  • #103256

    Paul
    Participant

    You may not get 3 million but if you will donate 5% which allows you the max match over a 20 year period you will be very well off with a planned retirement account. Again there are times when you can increase ubove 5% adn there will be times when you will need to lower your contribution but the key to success is continuety of putting in and if at all possible do the 5% to maximize the match

  • #103254

    Follow-up article from GovExec columnist: “How To Become a TSP Millionaire”
    http://www.govexec.com/story_page.cfm?filepath=/dailyfed/0710/070210rp.htm

    In a nutshell: “…diversify.”

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