I'm 30 and want to save $420,000 in 10 years. But I work for the Fed and can't invest in bank-specific ETFs. What are my options?

MW I'm 30 and want to save $420,000 in 10 years. But I work for the Fed and can't invest in bank-specific ETFs. What are my options?

By Aditi Shrikant

'I'm currently making $140,000 and I am flexible with what percentage of my salary I should set aside'

"I'm working a job that has restrictions on the type of portfolios I can invest in." (Photo subject is a model.)

Dear Dollar Signs,

I'm 30, single and have no kids. I want to have $420,000 invested by the time I'm 40. I'm currently making $140,000 and I am flexible with what percentage of my salary I should set aside to meet that $420,000 goal.

But I work for the Federal Reserve and I'm not allowed to invest in private bank portfolios like J.P. Morgan or Citi or bank-specific ETFs. Do you have any advice on how to invest for my future if I'm working a job that has restrictions on the type of portfolios I can invest in?

Government Gal

If you're just starting out on your money or career journey and have questions about how to navigate your finances, we want to hear from you. Write to Dollar Signs, MarketWatch's new advice column, at dollarsigns@marketwatch.com.

Dear Gal,

To me, the challenge isn't so much the investment restrictions as it is the amount you want to save in 10 years. You'd need to set aside roughly 20% of your annual income to reach this goal. It's ambitious, but within the range that many financial advisers consider reasonable.

Given that you work for the government, I assume you have a Thrift Savings Plan (TSP). The average rate of return on these accounts is about 6.8%. The Federal Reserve also matches contributions up to 5% of your basic pay - dollar-for-dollar on the first 3% and 50 cents on the dollar for the next 2%. If you contribute the maximum amount of $24,500 per year for 10 years, you could end up with $470,081.

Taking full advantage of this matching program is wise - ignoring it would mean, as the saying goes, "leaving money on the table."

I understand you might want to explore other investing options. While there are limitations for Federal Reserve employees, you do have choices outside the TSP that may offer higher potential returns.

Broad index funds, for example, are a strong option. Andrew Herzog, a CFP in Plano, Texas, says, "A broad market index fund is a safe bet because it's not hedging, there's no conflict of interest, and no favoritism."

Over the past 30 years, the S&P 500 's compound annual growth rate, with dividends reinvested, has been about 10%, according to LSEG data. Contributing $24,500 annually to an S&P index fund could yield around $454,014 in 10 years.

Overall, I believe your TSP is likely the better option, but this gives you a sense of what's possible if you want to explore other avenues.

How to cut back on expenses

Contributing such a large percentage of your income to retirement each month is no easy task and may require cutting back on expenses.

Bernadette Joy and her partner paid off $300,000 in three years by making relatively simple financial decisions.

One way to free up monthly cash flow is by adjusting how much you're withholding in taxes, Joy, who runs the money boot camp "Crush Your Money Goals," says. "Many people over-withhold and get large refunds, which feels nice but is basically giving the government an interest-free loan," she explains. "If you adjust your W-4 so your paycheck more closely matches what you actually owe, you increase your monthly cash flow immediately. That extra few hundred dollars can go straight into savings or investing."

Joy also recommends doing a "full insurance audit" once a year to ensure your coverage aligns with your needs. Shop around for home or auto insurance to get the best deal.

Permanent life insurance typically has higher premiums than term-life insurance, and many people don't need it. If you have no dependents and don't plan to leave an inheritance, permanent life insurance is usually unnecessary. "I've noticed an odd trend of single women with no dependents buying life insurance - it's often a total scam," she says.

The timeline you've outlined is ambitious but not unrealistic. If you stay disciplined about investing consistently and monitoring your expenses, I'm confident you can achieve your goals.

Write to Dollar Signs at dollarsigns@marketwatch.com.

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-Aditi Shrikant

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March 20, 2026 06:30 ET (10:30 GMT)

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