The Fastest Way to Double Your TSP (Even if Your Close to Retirement)

ladies and gentlemen federal employees today we're talking about how you can double your tsp as quickly as you possibly can what are the things you need to do to grow your tsp as quickly as you can whether you are 30 years from retirement or even right at retirement what are the things that you should be doing to make sure you're getting the growth that you need in your tsp now if you are new here so good to have you my name is D HW I'm a financial planner who serves federal employees and helping you get the most out of your retirement every single day okay here's the deal there are really only three things you have control over in the tsp to help you double your tsp as soon as possible number one let's go you have to save as much as you possibly can if you're not putting as much as you can into the tsp the odds of you doubling your tsp really soon as quickly as possible really really goes down now here's the deal there's some gurus out there let's say the D Dave Ramses of the world there's lots of people that say say hey look you have to save 15% or 20% or a certain percent of your pay into the tsp and honestly those are some good rules of thumb however however every person's situation is so different if someone is 20 years old and they're going to be consistently investing for the next 40 years before retirement what they have to do to hit their goals is very different from someone that's 50 years old and hasn't saved a dime yet for a retirement it's very different on what they're going to have to do to be able to reach let's say a million dollars in the tsp it's very different however this is what I'd say to you I don't care what you're saving in the tsp right now what can you do today can you improve it whether you're only doing let's say 5% to get the 5% match or you're doing more can you improve it just a little bit what about the next pay raise that happens what about the next step increase you get can you take some of that and can you put it towards saving into the tsp I don't care if you're already doing 20% can you do a little bit more okay again I'm not in favor of you just living off beans and rice while you're working so one day in retirement you will have enough I'm not in favor of that either but you've got to find a good balance can you do just a little bit better and often when people realize hey I saved a little bit more in the tsp and it did decrease my paychecks a little bit but I haven't noticed it at all right so that it's up to you to find the balance for you for you to save as much as possible now that's number one number one thing that you need to do to help double your tsp ASAP number two you've got to have a good investment strategy if you're just pouring money into the tsp but you're not investing it in a way that makes sense for you you're in trouble okay you're in trouble if you're 100% Gund for your entire career your account is just going to creep along so slowly even again even if you're maxing out the tsp every year it's not going to make a huge difference if you don't have a good investment strategy now obviously the strategy that a 20-year-old is going to want to take compared to let's say someone that is 70 years old it's going to be different certainly certainly okay however however whatever your strategy is you've got to have a strategy okay most people just talk to their coworker once and like oh my coworker does this so I'm going to do that no you don't want to do that you want to have a strategy that makes sense for you and that you stick with it now there's a I have a whole video I'm going to actually link it up if you want to go over some of the best investment strategies based on where you're at in your career definitely go check that out again I'm not going to spend a bunch of time in this video and there's other things to discuss um go check that out so long story short whatever strategy makes sense for you during your career stick to that strategy have a strategy in your mind that you can actually execute on and do and you stick with it okay don't don't just blindly say oh this is how they automatically invested in my tsp when I was hired I'm just going to keep that don't do that right at least understand what they have you in and if it still makes sense for you and it matches your strategy awesome but at least you are taking control over how your money is invested so you can take responsibility for your life okay next time once you are saving as much as you possibly can once you are having an investment strategy and you're sticking to it you're not floundering when markets go crazy right the next most important thing is time in investing time is one of the most powerful things you have to let things grow and to compound okay and here's the deal if you're 20 years old you automatically have lots of time so kudos for you kudos to you and anything you can do as a 20-year-old is going to be compounded so many so many times that anything you're able to invest in the tsp now as a young person makes a massive massive difference when you're older however let's say you're 57 or you're retiring tomorrow you're in your 60s and you say hey look okay I I get it if you're 20 you got lots of time but I'm 60 years old I'm about to retire tomorrow is there any possible way I can double my tsp right and the answer is yes the the answer is yes now obviously if you're about to retire and about to use start using some of this money growth is going to be slower right you may be taking withdrawals um you're going to be investing it maybe a little more conservatively again check out my investment video in the description below if you want to see how you should be investing close to retirement okay things are going to be different and things are going to be slower certainly but think about it even if you're 60 years old you're probably going to have a 30-year retirement you've got another 30 years that you need your money to be growing to beat inflation to make sure you never run out so the game is not over once you retire it's just a new game that has begun it's different you still need growth in your tsp even at retirement if you got if you're only 20 years old again you have lots of time but even if you're retiring tomorrow you still have lots of time and you you got to again stick to your strategy you got to do the best you can okay you still have lots of time to get the growth you need on your tsp and again over a 30-year retirement you better hope your money's growing if you're 100% Gund your entire career 30 years your money is going to get absolutely murdered by inflation during that time You' got to be getting growth and you got to be doubling your tsp every so often at least even if it's over some decades so that you keep up with inflation over time okay now here's the deal here's the deal here's let me give you some bonus tips okay to make this even more impactful whenever I talk to people whenever we're in a down Market when the stock market is having a hard time so many times I've T talked to people and they say hey hey look D the Market's having a hard time I actually pulled back my tsp contributions I'm not saving as much in the tsp right now because I know again the Market's down I don't want to put more money into something that's not doing well I don't want to do that okay and I look at them I say no what are you doing you're missing an incredible opportunity right let me let me ask you this way let's say you are really into a certain type of uh collectible or let's say you're you're in the market of buying a house or you're trying to buy a boat there's something you're trying to buy out there okay that you value and let's say it's on sale you could buy it and it's half the price that it was before is it worth buying or maybe say no it's half price but guess what that means it's not doing well I don't want to invest it's like well no when it's down market and you're still working that's actually a great thing to happen that means every dollar you contribute into the tsp when the tsp and the markets are down you're getting more bang for your buck it's actually the best opportunity the best thing to do during that time is to double down put even more into the tsp right because you're able to buy more at a good price okay you're getting a great deal when the Market's down and when you take advantage of those down markets you're able to double your tsp even faster cuz again you're getting the most bang for your buck during that time okay now here's the deal let me tell you the secret of the vast majority of tsp millionaires that I talk with I have a conversation with them all my clients that are tsp millionaires I always ask them I say hey what' you do over the course of your career what did you do so you ended up with a million dollars in your tsp and my conversation with them almost always goes the same way about 80% of them say the exact same thing almost verbatim they say hey look honestly I didn't have a clue what I was doing they said hey when I was first hired my boss sat me down and said hey look I know you're young but right now you're going to contribute this percentage of your tsp into the tsp your pay into the tsp and you're going to stick it into the C fund or the S fund one of the stock based funds that are going to grow over time and you're going to keeping in there your entire career and you're not going to mess with it okay unless until you get closer to retirement and they did that right they basically started contributing right away and they contributed into into things that are going to grow over time and they woke up at retirement and then that's when that's when they were talking with me they're like look I honestly don't know I I didn't know a lot of things okay but I just did took a few good pieces of advice and I woke up at in retirement with a million bucks in my tsp and honestly I hear that story over and over and over again okay so being a tsp millionaire is not about being super smart honestly sometimes the really really smart people I talk with they overthink it they try to get fany with it and they get worse results it's about coming finding a strategy again check out my my investment strategy video to find the mix that makes sense for you once you have that strategy stick to your plan stick to your plan don't get flustered when other people are getting flustered okay don't get greedy when other people are getting greedy you want to stick to your plan take advantage of down markets save as much as you can stick to your strategy and let time do its thing okay so I hope that's helpful again these are the secrets of the tsp millionaires that I see and talk with every single day so I hope that is helpful for you to help double your tsp as soon as possible now you guys have a great rest of your day I'll see you guys next time

Channel: Haws Federal Advisors

Views: 67,176

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Id: wVgPefJIvRg

Length: 10min 29sec (629 seconds)

Published: Fri Dec 29 2023