The Biggest Risk Federal Employees Face As They Near Retirement

The years immediately before and after retirement are often referred to as the fragile decade for your Thrift Savings Plan (TSP) because of the disproportionate impact that investment returns during this period have on your TSP’s longevity. This disproportionate impact of investment returns is called the sequence of return risk, and it’s the greatest riskContinue reading “The Biggest Risk Federal Employees Face As They Near Retirement”

4 Tax Pitfalls Federal Employees Need To Avoid

There are many financial mistakes that federal employees can make throughout their life, but some of the most common that I see revolve around tax planning. Specifically, there are 4 common errors I see federal employees make before they work with my firm. These tax mistakes can be costly and might even derail your financialContinue reading “4 Tax Pitfalls Federal Employees Need To Avoid”

What Federal Employees Need To Know About Tax Diversification?

An overwhelming number of federal employees that come to me for help have most of their retirement assets in a tax-deferred account, meaning the traditional Thrift Savings Plan (TSP) and/or a traditional IRA. And while saving diligently in your TSP throughout your career is a great thing, using other account types to build diverse taxContinue reading “What Federal Employees Need To Know About Tax Diversification?”

What Happens When Federal Employees Make Ineligible Roth IRA Contributions?

Most of us can agree that Roths are great. Whether it be your Roth TSP or a Roth IRA, these accounts provide tax-free income in retirement, the opportunity to limit the taxation of your Social Security benefits, and they don’t have Required Minimum Distributions – while this last one only applies to Roth IRAs. ButContinue reading “What Happens When Federal Employees Make Ineligible Roth IRA Contributions?”

The Backdoor Roth IRA: What Federal Employees Need To Know

A common question I get from highly motivated savers is whether they can contribute to their Roth TSP and a Roth IRA each year. And while having a TSP does not prevent you from having a Roth IRA, if your Modified Adjusted Gross Income (MAGI)* is too high, you will be ineligible to contribute toContinue reading “The Backdoor Roth IRA: What Federal Employees Need To Know”

3 Insurance Needs Federal Employees Should Review

As we kick off our new year, it’s important that we take the time to ensure we have adequate insurance coverage to protect ourselves and the ones we love. Part of this review process means not only looking at our life insurance needs but also our property and disability coverages as well. So, this weekContinue reading “3 Insurance Needs Federal Employees Should Review”

Contributing To Your TSP After Separating From Federal Service

Sooner or later, you will separate from federal service, and whether you are called to retirement or the prospects of the private sector, you’ll have to decide what to do with your Thrift Savings Plan. While many federal employees will opt to transfer their TSP to an IRA, many will choose to keep their nestContinue reading “Contributing To Your TSP After Separating From Federal Service”

3 Early Retirement Options For Federal Employees

For some federal employees working until they’re eligible for the traditional FERS retirement just isn’t in the cards. And while retiring after 20 or 30 years of uninterrupted service is usually uncomplicated, there is often confusion about what early retirement options are available; this week, we will review three early retirement options: postponed, deferred, andContinue reading “3 Early Retirement Options For Federal Employees”

Quickstart Guide To The Federal Long Term Care Insurance Program

Most federal employees know someone who has required long-term care at some point in their life. Whether a family member or a friend, we’ve seen how some individuals need support with daily tasks due to chronic illness, injury, disability, or simply the aging process. In fact, a 2019 U.S. Department of Health and Human ServicesContinue reading “Quickstart Guide To The Federal Long Term Care Insurance Program”

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?”