Many federal employees don’t realize the impact that taxes will have on their retirement income. But the truth is that if not factored into your retirement planning, taxes can destroy your financial plan. Even if retirement is many years away, understanding how your federal retirement income will be taxed will help you be proactive withContinue reading “How Will Your Federal Retirement Benefits Be Taxed?”
Author Archives: Jose Armenta, MsBA, CFP®, ChFC®, CLU®, EA
How Is Your FERS High-3 Calculated?
Most federal employees have heard the term “High-3,” and many understand that their pension will be a percentage of this amount. But few know how to compute their High-3 or what pay is actually included in it. However, since your High-3 is required to calculate your pension, it’s critical to understand in order to estimateContinue reading “How Is Your FERS High-3 Calculated?”
Can You Convert Your Traditional TSP To The Roth?
As a federal employee, there are some major advantages to contributing to the TSP, such as having the choice of making pre-tax (Traditional TSP) or/and post-tax contributions (Roth TSP). Being able to select how you want your contributions treated for income tax purposes is a powerful tax planning tool, but what if you decide toContinue reading “Can You Convert Your Traditional TSP To The Roth?”
How Do The FERS COLAs Work?
As a federal employee, one of your greatest benefits is your FERS pension, and one of the greatest aspects of your pension is the cost-of-living adjustments (COLAs) applied while you’re in retirement. The reason these COLAs are such a powerful part of your pension is that they will help you maintain your standard of livingContinue reading “How Do The FERS COLAs Work?”
Can Federal LEOs Elect the Postponed Or Deferred Retirement?
Although we have covered the enhanced retirement benefits for LEOs and the FERS early retirement options (Postponed and Deferred), we haven’t reviewed whether LEOs can retire under one of these early retirement options. And while many LEOs will retire under the Immediate retirement, there will undoubtedly be those who separate before full eligibility for oneContinue reading “Can Federal LEOs Elect the Postponed Or Deferred Retirement?”
FERS Early Retirement Options: Postponed Vs. Deferred
Although retiring after 20 or 30 years of uninterrupted service is usually uncomplicated, for federal employees who want to retire early, there is often confusion between two options: the postponed and deferred retirements. And while both involve separating from service early and receiving the FERS pension later, there are significant differences between the two thatContinue reading “FERS Early Retirement Options: Postponed Vs. Deferred”
8 Things Federal Employees Should Do 5 Years Before Retirement
Retirement is a significant milestone, representing the culmination of years of hard work and the prospect of a well-deserved break. Retirement planning takes on even greater importance as a federal employee due to the unique benefits and complexities associated with your employment. While Feds enjoy a range of retirement benefits and opportunities, knowing when toContinue reading “8 Things Federal Employees Should Do 5 Years Before Retirement”
The Common And Costly Estate Planning Mistake Federal Employees Make
There are many financial mistakes that federal employees can make throughout their life but one of the most common that I see, and ironically one of the easiest to avoid, is naming and updating beneficiary designations. Yes, this sounds simple, but you may not realize how many beneficiary designations you have. And since it’s easyContinue reading “The Common And Costly Estate Planning Mistake Federal Employees Make”
Understanding the FERS Deferred Retirement
Every federal employee knows that the FERS pension is a great benefit, but many are unaware of the several ways they can be eligible to receive that pension. For instance, federal employees can retire under the immediate, postponed, or deferred retirement option, to name a few. And since retiring after 20 or 30 years ofContinue reading “Understanding the FERS Deferred Retirement”
How Much Of Your FERS Pension Will You Keep?
When planning your federal retirement, you’ll need to calculate your FERS pension and should request an estimate from your HR. But often, these projections don’t represent what will actually be deposited into your bank account. The reason for this discrepancy is that most individuals calculate their gross pension, not their net pension, and even yourContinue reading “How Much Of Your FERS Pension Will You Keep?”