The number of TSP millionaires rebounded in the second calendar quarter of this year after a steep drop in the first quarter, although not back to the number as of the start of the year.
The changes follow the path of the stock markets, which largely but not fully recovered in April-June from the damage of the January-March period, occurring in the latter half of that period. Currently there are just above 45,200 TSP millionaires—out of some 5.8 million accounts, including current and retired federal and military personnel and survivors—up by 18,000 from the end of March but not yet back to the 49,600 at year-end 2019.
The number with accounts of at least $750,000 but less than $1 million similarly rose to about 71,600 from about 58,000 but remains below the earlier 74,900 level. There now are 171,000 accounts of $500,000-$750,000 compared with 150,000 and 176,600 in the prior two quarters, and 483,200 accounts of $250,000-$500,000 compared with 452,400 and 488,000.
The figures also underscore the importance of time in building large accounts: the average number of years of investing for those in the $1 million and above range was nearly 30 years, followed by 27, 24 and 21 in the three following categories. Those numbers were little changed over the three reporting periods.
High Stock Valuations Face Rising COVID-19 Cases
Stocks enjoyed a fast rebound from the March lows as the U.S. government and Federal Reserve provided trillions of dollars of fiscal stimulus and quantitative easing into the economy and financial markets, but lately both fiscal support and monetary support have tapered, amid a sharp rise in Covid-19 cases in states such as Florida, Texas and Arizona leading to a reversal in reopening plans in some cases.