Ask The Experts: Money Matters

By Mike Miles

TSP goals

Bookmark and Share

Q. You state that we should invest in the Thrift Savings Program based on goals for retirement. My goal is to have $1 million in my TSP account by the time I retire; $1.5 million to $2 million would be even better. My TSP account has about $350,000. What can I do to grow my TSP to $1.5M to $2M over the next 10 to 15 years, given that I will max out the contributions (TSP $17,500 and TSP catch-up $5,500) every year until then?

A. There is no way to answer this since you’ve provided a very wide range of possible combinations; $1.5 million over 15 years requires about a 7 percent rate of return, and $2 million over 10 years requires a rate of return of close to 15 percent. You’ll need to be more specific in setting your goals.

Tags: , , , ,

Leave a Reply

PLEASE NOTE! Do not submit ANY questions via the Comments form. Instead, please send your questions directly to fedexperts@federaltimes.com. Questions submitted via the Comments form will NOT be answered!