As federal employees prepare to retire, they must shift from the accumulation mindset to the distribution mindset; said differently, they must shift from the saving mindset to the spending mindset. This change comes with many challenges, chief among them is deciding on a retirement income strategy. When developing a plan for turning your retirement assetsContinue reading “How Federal Employees Can Manage Their Investments In Retirement: The Bucket Strategy”
Category Archives: TSP
Roth Conversions: What They Are & The 3 Things Federal Employees Need To Know
With all the recent talk of Roth conversions in the media and on the hill, many federal employees are asking what the heck is a Roth conversion, and where do I get one? Simply stated, a Roth conversion refers to the process of moving some or all of your tax-deferred retirement savings from accounts likeContinue reading “Roth Conversions: What They Are & The 3 Things Federal Employees Need To Know”
What Federal Employees Should Do 1 Year Before Retirement
Although, as a federal employee, you should begin planning for retirement years before you hand in your application, the year before retirement is critical to set yourself up for the transition. This period is essential since you’ll have limited time to review your finances and make decisions that will affect the rest of your life.Continue reading “What Federal Employees Should Do 1 Year Before Retirement”
How Will Your Federal Retirement Benefits Be Taxed?
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?”
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?”
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”
3 Reasons Why Federal Employees Retire At 57
An important part of establishing your retirement plan is choosing the best age to retire. While the average retirement age for federal employees is 62 (61.8 according to OPM), there is no magic age that works for everyone. Hence, it could make sense for some to retire earlier or later, and the right age willContinue reading “3 Reasons Why Federal Employees Retire At 57”
What To Consider Before Transferring Your TSP To An IRA
When you separate from federal service, you will have an important decision: should you leave your money in the Thrift Savings Plan or transfer it out (presumably to an IRA)? The bad news is there is no right answer for everyone, and it depends on your preferences and situation. But the good news is thatContinue reading “What To Consider Before Transferring Your TSP To An IRA”
Withdrawing From Your TSP Early
Although many federal employees believe that they must wait until age 59 ½ before taking penalty-free withdrawals from their TSP, that isn’t the case. In fact, there are a few different ways that federal employees can take withdrawals before 59 ½ and avoid the 10 percent penalty usually applied to early distributions. In this article,Continue reading “Withdrawing From Your TSP Early”