Retirement is a unique stage of life, both exciting and slightly terrifying simultaneously. The goal is to finally relax and enjoy your golden years after all your hard work in federal service. The major variable that can make retirement so nerve racking, though, is the fear of not having enough money to maintain your standard of living. That thought leads you to two important questions; how do you know if you have enough to retire, and how do you implement a strategy to get there?
ASSESS YOUR FINANCIAL SITUATION
If you want to make an effective, informed decision on retirement, you need to know the cards you’re working with. You want to review your budget and savings, but understanding your monthly deductions and expenses is of equal importance. It would also be wise to start gathering info on your main sources of income in retirement – FERS Pension, TSP/IRAs, and FERS Supplement/Social Security. There are numerous decisions to be made with these, and you want to be well informed on the pros/cons of each, leading into finally separating service.
START YOUR RESEARCH
It’s essential to note that federal employees’ retirement benefits differ from private sector employees, so the research project on Fed Benefits can be a bit confusing sometimes. Unlike the vast majority of folks in the private sector, FERS Retirees are eligible for a defined benefit pension plan. That’s a long-winded name for your FERS pension, but that FERS pension generates monthly income for life and has COLAS (cost of living increases) annually. FERS Employees also have access to the Thrift Savings Plan (TSP), a defined contribution plan that works similarly to a 401(k) plan. The third main piece of the pie is the FERS Supplement or Social Security, you want to familiarize yourself with the timing and amounts of those income streams.
It’s not uncommon to receive an equal or sometimes a greater amount of income in retirement compared to when you were working full time. There’s a road map that can get you there, but you need to review and familiarize yourself with the different routes you can take to get there. There are a lot of different ways to crack a peanut, but when it comes to retirement, everyone wants to arrive at the same goal, maintaining or enhancing your standard of living and doing it in a way where you don’t have to worry about outliving your money.
SEEK PROFESSIONAL ADVICE
We realize the process of seeking out professional advice can be nerve wracking. If it doesn’t cost you anything to get a second opinion, or as some questions you’ve been seeing the answers to; why wouldn’t you hear what an advisor specializing in federal retirement has to say? Benchmark Financial Group works with individuals every day to help Federal Employees create a personalized retirement plan and provide guidance on investments, growth, and income strategies.
If you’re looking to get the process started, Benchmark Financial Group may be able to help. It all starts with gathering your information, discussing your goals, and preparing a plan to maximize your retirement income and assets. To get started, schedule an appointment today with Benchmark Financial Group by filling out the form online or calling David Raetz at 913-534-8256 to discuss your financial needs. Benchmark Financial Group is happy to help you navigate your options and determine the best path to move toward your financial goals.
*Securities and Advisory Services Offered Through CreativeOne Securities, LLC Member FINRA/SIPC and an Investment Advisor. Benchmark Financial Group, LLC and CreativeOne Securities, LLC are not affiliated.
9300 W. 110th Street, Ste 160
Overland Park, KS 66210
