One of the benefits of the Thrift Savings Plan (TSP) is that employees can get a match from the Federal government if they contribute up to 5 percent of their base pay to the plan.
The first 3 percent is matched dollar-for-dollar, while the next 2 percent is matched with 50 cents for each dollar the employees contribute. For 2016, an employee can make regular contributions of up to $18,000; if the employee is 50 or older, he/she can contribute up to $24,000. However, if the employee is a deployed
service member or are serving as a civilian in a combat zone, he/she may be able to contribute up to $53,000 in a single year. The TSP, a defined contribution plan
employees and retirees as well as for members of the uniformed services, is well known for its incredibly low fees; in 2015, the average net expense was around 29 cents for every $1,000 invested, which is lower than many 401(k) plans.
In the U.S. an average couple will pay $155,000 in 401(k) fees over their careers.
The S&P 500 Index is very unstable; in the 41 years from 1957 to 1998, only 74 of the original 500 companies were still in the index.
After serving their terms, U.S. Presidents, by law, get lifetime pensions equal to the salary of a Cabinet officer (i.e.; Secretary), which is about $200,000 a year (as of 2015); this lifetime annuity payout would rise over time, as Cabinet salaries do.
Americans who work abroad for foreign companies (rather than companies with American ties) may not be required to contribute to
Social Security, which can affect the benefits they are eligible for when they retire.
In 2012, Chinese companies invested $10.7B in the U.S. They also invested $22.9B in Canada, $8.6B in Australia, $4.6B in Hong Kong, $3.9 in United Kingdom, $2.5B in Nigeria, $2.0B in Germany, $1.4B in Brazil, $0.7B in South Africa and $0.7B in Italy.
The highest-price stock currently sold on the NYSE is Warren Buffett's Berkshire Hathaway, Class A (NYSE: BRK-A), which sells for around $136,015.02 (as of December 19, 2012).
As of 2011, at $15.094 trillion, the U.S. economy, as measured by GDP, is larger than the next two largest countries' economies combined, Japan ($5.867 trillion) and China ($7.298 trillion).
During the past two years (2010-2011), the federal government charged at least 67 people involved with criminal cases of fraudulent or related dishonest conduct. The charges include securities fraud, ponzi, investment fraud, adviser fraud, wire fraud, mail fraud, tax fraud, conspiracy, embezzlement, and theft
while they worked for investment firms, such as Edward Jones, UBS, Smith Barney, ING Financial Partners, Merrill Lynch &. Co, MF Global Holdings Ltd., Credit Suisse Group AG, and Infinity Financial Group LLC. They stole at least $9,499,093,000 from their clients.
In January 1980 gold hit $850 an ounce, it took until January 2008 before investors who bought at the high broke even. In the 1980s, the price plummeted about 65%. In 2008, gold lost more than 30% of its value. The price of an ounce of gold was $1,917.90, a set record on August 23, 2011.
Many Chinese companies overstated their numbers to mislead people, especially U.S. investors and regulators. Ones of those are China Education Alliance (CEA) and
China Media Express. CEA reported its "training center" had "17 modern classrooms" for 1,200 students; actually the "center" had no desks and was all but empty.
The CEA' stock has plunged from $4.50 a share on November 26, 2010, to 76 cents on August 22, 2011 after the report was published. China Media Express, which inflated sales and profit, had its stock price collapsed, and trading in the shares was halted.
There are about 370 Chinese companies that obtained U.S. listings since 2004 without the rigors of initial public offerings; as of August 2011 at least eight of these companies had their registrations revoked, and over 25 ones have also reported other problems, including accounting issues and auditor resignations.
Since 1935, when President Franklin D. Roosevelt signed legislation creating the first
U.S. Savings Bonds, which have encouraged savings and a broad participation by Americans. Today, billions of dollars in savings bonds have stopped earning interests, but haven't been crashed. If you still have one, you may need to cash or
reinvest it so your money can start working for you again.
The U.S. has the world's largest gold reserve - more than 8000 metric tons, which is worth an estimated $288 billion (2/2010). German has 3400 metric tons of gold, which comes in second.
Since 1971, the return on gold has been 8.86% a year, while the average return on stocks has been 9.76%.
In terms of return on investment, buying a home at this time is actually not that great of an investment
Japan is one of the world's most earthquake-prone countries, and experts believe Tokyo has a 90 percent chance of being hit by a major quake between today and 2060. There is a 67 percent chance for at least one earthquake of magnitude 7 or larger in the San Francisco
Bay Area between 1990 and 2020. Most insurance companies do not cover home/building damaged by an earthquake
Berkshire Hathaway is the most expensive U.S. stock, the price for one Class A share of
Warren Buffett's Berkshire Hathaway (BRKA) briefly topped $100,000 in October 2006. It was reached $100,425 again on August 4, 2009. It was lost 32% of its value in 2008. As of August 7, 2012, its price was $128,240.
2008 is the worst year of the stock market since 1937. During 2008 there was around $10 trillion household wealth destroyed. Value wiped out from the
Dow Jones Wilshire 5000 is around $7.3 trillion. Decline of the
S&P 500 is 38.5% (loss around $4.8 trillion). The NASDAQ's loss is around 40.5%. The average loss among stock mutual funds is around 38%, and loss among bond mutual funds is around 8%
In terms of returns in 2008, while investors lose money, investment bankers continue receiving bonus. They receive money based on how many investment deals they can push through, not on the quality of the deals or long-term strategy.
2016 Limitations Pension Plan & 401(k) Contribution
(Highlights of limitations that changed from 2015 to 2016)
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $184,000 and $194,000, up from $183,000 and $193,000.
The AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000. For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
The AGI limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $61,500 for married couples filing jointly, up from $61,000; $46,125 for heads of household, up from $45,750; and $30,750 for married individuals filing separately and for singles, up from $30,500.
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000.
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $6,000.
The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
The deduction for taxpayers making contributions to a traditional IRA is phased out for those who have modified adjusted gross incomes (AGI) within a certain range. For singles and heads of household who are covered by a workplace retirement plan, the income phase-out range remains unchanged at $61,000 to $71,000. For married couples filing jointly,
in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range remains unchanged at $98,000 to $118,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
The AGI phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In the year you reach full retirement age, $1 will be deducted in benefits for every $3 you earn above a different limit. In 2017, the limit on your earnings is $44,880 but we only count earnings before the month you reach your full retirement age.
The TSP is a retirement savings plan for civilians who are employed by the
United States Government and members of the uniformed services. A choice of investment funds:
– US Government Securities Investment (G) Fund
– Fixed Income Index Investment (F) Fund (invested in the Barclays U.S. Debt Index Fund/Lehman Brothers U.S. Aggregate bond index)
– Common Stock Index Investment (C) Fund (invested in the Barclays Equity Index Fund/S&P 500 stock index)
– Small Capitalization Stock Index Investment (S) Fund (invested in the Barclays Extended Market Index Fund/Dow Jones Wilshire 4500 Completion stock index)
– International Stock Index Investment (I) Fund (invested in the Barclays EAFE Index Fund/EAFE - Europe, Australasia, Far East - stock index)
– TSP: Daily Rate & Share Price History.
– TSP: Calculating Periodic Returns and Compound Annual Returns.
Investment Interest Estimation
Note: # times compounded each year means that the number of times you would like to
compound to see your investment status and then start your investment again without withdrawing any money.
How much I will receive after making a one-time
How much money I need to invest today to get my
desired future money value?
How many years I need to invest to get my
desired future money value?
How much money I will receive after investing the same amount of money each month for a number of years?
How much money I need to invest per month for each year to reach my desired future money
How many years I need to invest to reach my desired future