The number of TSP millionaires has risen sharply over the past year thanks to the performance of the stock market in 2023.
According to the latest figures from the Federal Retirement Thrift Investment Board (FRTIB), the agency that oversees the Thrift Savings Plan (TSP), there are now 94,873 TSP millionaires as of the end of September 30, 2023. This is a 23.4% increase since December 31, 2022when there were 76,889 TSP millionaires. This also represents an 8.5% increase since the end of the first quarter of 2023 when there were 88,265 TSP millionaires at the end of March.
Although there was a decline in the number of TSP millionaires since the end of the second quarter, the overall total is up sharply over 2022. At the end of June 2023, the total number was 100,534.
What is the largest TSP account balance? According to the latest figures, the biggest TSP account balance was $7,226,814.30 at the end of September. This is up from $7,170,226.61 at the end of March, an increase of 0.89%.
There were 6,914,622 total TSP participants and $783 billion in total assets in the TSP as of September 30, 2023.
16% Drop in TSP Millionaires Since December 2021
Despite the turnaround in 2023, the total number of TSP millionaires is still lower than it was two years ago. As ofDecember 31, 2021, there were 112,880 millionairesin the federal government’s Thrift Savings Plan (TSP). It may be a while before that number is reached again, especially given the more shaky performance of the stock market during the past three months.
How Has the Number of TSP Millionaires Changed Over the Last Decade?
The first time FedSmith reported on the number of TSP millionaires was inJanuary 2012. At the end of December 2011, there were only 208 TSP millionaires.
The number has increased rapidly since then through the inevitable ups and downs of the stock market. The figure at the end of 2022 was the lowest number of TSP millionaires since December 2020.
This table displays how the number has changed over time.
Breakdown of TSP Account Balances and Average Years of Contributions
As one might expect, federal employees who have become TSP millionaires have been investing in the TSP a lot longer. The average years of contributions for those who have achieved millionaire status is 29.43 as of the end of September 2023.
The average number of contributing years for all TSP participants is 10.66.
Account Balance
Total Participants
Average Years of Contributions
< $50,000
4,273,183
6.01
$50k – $249k
1,693,144
15.42
$250-$499k
546,447
21.11
$500k-749k
210,508
24.15
$750-999k
96,467
26.38
>= $1 million
94,873
29.43
Total
6,914,622
10.66
2023 TSP Performance
Better performance of the stock market so far in 2023 has bolstered the performance of the TSP funds which led to an increase in the number of TSP millionaires. As of the close of markets on November 2, 2023,all but one of the TSP funds (F Fund) have had a positive return so far this year.
The stock market has declined over the last three months, but the year-to-date returns along with the growing number of TSP millionaires are evidence of the importance of keeping invested for the long term and riding out the inevitable short-term increases and decreases of the stock market.
2023 TSP Performance as of November 2, 2023
Fund
YTD
G Fund
3.42%
F Fund
-1.06%
C Fund
13.95%
S Fund
5.04%
I Fund
6.62%
L Income
4.96%
L 2025
6.01%
L 2030
7.42%
L 2035
7.76%
L 2040
8.12%
L 2045
8.40%
L 2050
8.72%
L 2055
10.14%
L 2060
10.14%
L 2065
10.13%
TSP Millionaires FAQ’s
How many TSP millionaires are there?
There are 94,873 TSP millionaires as of September 30, 2023.
What is the largest TSP account balance?
The largest TSP account balance was $7,226,814.30 as of September 30, 2023.
According to the latest figures from the Federal Retirement Thrift Investment Board (FRTIB), the agency that oversees the Thrift Savings Plan (TSP), there are now 94,873 TSP millionaires as of the end of September 30, 2023. This is a 23.4% increase since December 31, 2022 when there were 76,889 TSP millionaires.
As of year-end 2023 just under 117,000 TSP investors had $1 million or more in their accounts, an increase of some 40,000 during the year, another impact of the rebound in stock-based investment funds during the year making up for their losses of 2022.
Over the course of 2023, the S Fund increased 25.30%. The common stocks of the C Fund finished December 4.54% in the black, while boasting gains of 26.25% for the year. The international (I) fund saw the second-best monthly performance of the TSP's core offerings, growing 5.39%.
Here are a few of the outstanding statistics: Total TSP assets at the end of 2023 were $845 billion. 4,060,009 FERS TSP accounts with an average account balance of $175,692.
The largest TSP account balance is now $8,007,210. This is up from $7,226,814.30 at the end of September and from $7,170,226.61 at the end of March. The average years of contributions to the TSP among the $1 million and up account balances is 28.91 years.
Currently, about 1.4% of TSP participants have portfolios worth a million dollars or more. As of March 31, 2021, the number of participants with at least a million dollars in their TSP accounts increased to 84,808 from 27,212 the prior year. That is a 212% increase!
Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.
But to summarize that article, the 5 core funds can be broken down into conservative and aggressive funds. The conservative funds are the G and F funds and the aggressive funds are the C, S, and I funds.
This gives the G Fund the best overall risk/reward ratio of any Treasury investment, and it's only available to TSP investors. More specifically, the G Fund interest rate is based on the average of U.S Treasuries with a duration of 4 years or more, and the interest rate resets monthly.
There is no such thing as too much money in the Thrift Savings Plan. If you want your TSP balance to be able to generate an inflation-indexed annual income of $10,000, most financial planners will suggest that you have a $250,000 balance at the time you retire.
If you earn 8% on your money per year (which is historically pretty hard for a combined stock and bond portfolio to do), you can turn that into a million dollars within 25 years. It's no wonder, then, that the average contribution years of a TSP millionaire is over 29 years.
Even in today's inflationary times, the word millionaire has a certain cachet. With a little self discipline and the power of compound interest, millionaire status is available to federal employees who make wise use of the Thrift Savings Plan.
The average TSP balance has grown steadily in the last decade, reaching the six-figure mark in 2013. As of 2021, the average TSP balance for FERS participants was $181,279, while the average TSP balance for CSRS participants was $194,424.
Be patient: Building wealth takes time and becoming a millionaire through the TSP will likely require a long-term perspective. Stay the course and continue saving and investing consistently, and you will increase your chances of reaching millionaire status.
As of 2023, the United States has the highest number of millionaires in the world, with an estimated 25.58 million individuals with a net worth exceeding one million U.S. dollars. This represents approximately 9.7% of the adult population in the United States.
There is no such thing as too much money in the Thrift Savings Plan. If you want your TSP balance to be able to generate an inflation-indexed annual income of $10,000, most financial planners will suggest that you have a $250,000 balance at the time you retire.
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