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What’s an appropriate amount to have invested for retirement purposes? Blocked by moderator
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Private answer
More! 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. This is based on something called the “4% rule”. Financial planners using calculators that give the odds of running out of money in 30 years (called “Monte Carlo Simulators”), have found that 90% of the scenarios generated by the calculator will result in an individual still having money remaining at the end of 30 years if they begin their withdrawals at a 4% rate and make annual inflation adjustments. Given today’s lower rates of return on the G fund (2.04% in 2015), some have suggested that a lower rate of withdrawal would be appropriate for those who have their TSP invested solely in the G fund. I predict that the G funds 2016 rate of return will be close to 1.8%. Blocked by moderator
 Posted by Fedweek (Questions: 12, Answers: 15) Answered on August 9, 2016 7:02 pm
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