July 23, 2014

The C Fund has recently produced a lot of millionaire TSP participants.

Those TSP participants who started investing in the C Fund at its inception in 1988 have become or are close to becoming millionaires this year.

Those who contributed enough from pay that, together with the government match, was the equivalent of the maximum deferral limit each year are now millionaires:

C Fund millionaires

In 1988, the deferral limit was just over $7,300, and by 2000 that limit had grown to $10,500. In 2013 and again this year, the deferral limit had increased to $17,500. (See this chart for past TSP deferral limits.)

Those who contributed the maximum deferral limit from their pay each year and collected the government match are in even better shape (for example, contributing the maximum $17,500 plus the government match of 5% of salary last year and again this year).

Finally, for those who contributed the maximum deferral limit plus additional “catch-up” contributions (which reached $5,500 in addition to the $17,500 deferral limit last year) allowed for those over 50, well, they’re doing really well.

(And for those who had a little extra in the G or F Fund to use when the C Fund collapsed in 2002-3 and again in 2008-9, they’re probably doing the best of all! See TSP Investing Strategies for more on a basic way to implement this technique.)

Click to the TSP Stats page or the stock and bond funds link to see how the other funds have performed since their inception.

Related topics: c-fund long-term-investing