Not affiliated with The United States Office of Personnel Management or any government agency

March 28, 2024

Federal Employee Retirement and Benefits News

Tag: FERS

FERS

FERS or the Federal Employee Retirement System is the retirement system applicable to the employees that fall under the US civil service. Its inception can be dated back to January 1, 1987 when it replaced the CSRS.

The Federal Employees’ Group Life Insurance Program

The Federal Employees’ Group Life Insurance (FEGLI) program stands out among the four government-sponsored insurance programs for federal employees because some available coverage is automatic upon employment, barring a decision to decline it. Specifically, FEGLI coverage is “opt-out” rather than “opt-in,” unlike health insurance, vision-dental insurance, and long-term care insurance plans.

When you joined federal employment, you had the option to decline FEGLI coverage. However, if you didn’t, you are immediately protected by Basic insurance, which offers group term life insurance without requiring a medical exam. It includes accidental death and dismemberment insurance, also known as “double indemnity” protection.

Your basic salary, which is the sum from which retirement deductions are subtracted, rounded up to the next higher thousand dollars, plus $2,000, determines the monetary amount of your basic life insurance. This amount also fluctuates every time your basic pay does.

You may be eligible for an AD&D benefit depending on your injury type. You would receive the whole sum if you passed away or lost two or more body parts-such as a hand, foot, or eye-while receiving half if you lost only one.

Different amounts are payable under AD&D, depending on your age. You will get twice the basic life insurance amount if you are under 35. The multiplier decreases by one-tenth every year you turn 35 and after that, until it reaches your basic insurance amount at age 45 or older.

There are three additional optional life insurance advantages if you are protected by basic life insurance. You will be responsible for covering the full price of any of them if you decide to enroll.

Option A – Standard Insurance

There were just Basic and Standard life insurance options accessible to federal employees in 1954, the year FEGLI first became a thing. Standard life insurance was available to employees who wanted more coverage at their own expense, while basic life insurance was covered by matching payments from the government and its employees. $10,000 significantly increased the average employee’s annual salary back then.

Yes, the sum has not changed in 70 years, even though $10,000 is just approximately one-ninth of the average federal employee income today. If you have basic life insurance, you can still purchase an additional $10,000 worth of coverage.

Although the premium rates are very low for younger employees, they rise as you age. You’ll pay a set fee until the age of 35. The rates rise every five years starting at age 35.

Option B – Additional

Option B allows you to select a sum that is one, two, three, four, or five times your yearly basic pay, rounded up to the next $1,000.

Option C – Family

Option C enables you to pay for insurance for your spouse and any eligible dependent children. Similar to Option B, you may choose up to five multiples of coverage, each multiple equaling $5,000 for your spouse and $2,500 for each of your children. Your age determines how much each premium will cost.

Designation of Beneficiary

A designation of beneficiary form had to be completed when you joined the government. You listed the individuals whose lives you wanted to be covered by your life insurance if you passed away. You should check the items you placed there years ago if you haven’t already.

If you don’t make the necessary changes, the beneficiary(es) you would have chosen today may not get the life insurance money upon your death. If you were single when you were an employee, you might have named your parents or siblings. However, if you later got married, that is probably not how you would prefer your benefits to be allocated right now.

Fill out a Standard Form 1823 to modify your FEGLI designation. You can obtain one from your personnel office or online at www.opm.gov/forms/standard-forms by selecting SF 2808 (CSRS) or SF 3102 (FERS).

Your life insurance will be distributed in the following order if you fail to complete a designation of the beneficiary form:

• Your spouse;

• If you are single, to your kid or children in equal shares, with the share of any deceased child being dispersed among that child’s descendants;

• To your parents in equal shares if you are childless or to the surviving parent if you do not have any children;

• To your estate’s lawfully chosen executor or administrator if you don’t have parents;

• And, lastly, to your next of kin under the local laws of where you were residing at the time of your passing.

Note: If you and your spouse are divorcing, the disposition of your life insurance payout may have been determined by a court order.

Go to your service personnel office and verify your Official Personnel File (OPF) to find out whom you’ve named as a beneficiary(ies). By doing this, you can be certain that the people on the list are the ones you want to receive benefits in the event of your passing.

Contact Information:
Email: [email protected]
Phone: 3037587400

Fed Chairman Powell urged to safeguard jobs on the eve of the next rate hike.

The U.S. Senate Banking Committee Chair asked Federal Reserve Chairman Jerome Powell on Tuesday to exercise caution when tightening monetary policy so much that it causes millions of Americans already experiencing rising inflation to lose their jobs.

The letter, which was also written to the Fed’s Board of Governors and made publicly available by Brown’s office, reads, “While it is your duty to fight inflation, you must also keep in mind that you also have to make sure we have full employment. We must avoid the effects of aggressive monetary policy, especially when the Fed’s actions fail to address inflation’s primary causes, overwhelm our recent gains and robust labor market.”

At their meeting the following week, Fed policymakers are anticipated to announce their fourth consecutive supersized interest rate hike, pushing the policy rate to between 3.75% and 4% as part of the most significant series of rate increases in about 40 years.

Brown’s letter urged “continued caution” in light of the synchronized tightening of monetary policy by central banks around the world and other factors that pose the real possibility of worsening the global economic situation. Still, it did not specifically ask the Fed to stop or slow the rate hikes.

For his part, Powell has acknowledged these dangers and the possibility that increasing borrowing rates would result in a rise in unemployment, which is currently at a historically low 3.5%.

He has, however, also maintained that the only way to guarantee the durability of the labor market is to defeat inflation, which is currently running at over three times the Fed’s 2% target.

Brown’s letter to Powell is being published as his fellow Democrats fight to hold onto their slim Senate majority across the nation, with Brown’s home state of Ohio serving as one of the most carefully watched contests. The elections are held one week following the Fed meeting.

Republicans claim they would manage the economy better than Democrats and blame Democrats’ pandemic aid and other policies for high inflation. At the same time, Democrats blame rising prices on avaricious businesses and supply networks.

According to studies, both sky-high demand and supply limits are responsible for driving inflation, and Fed policymakers say they are dedicated to reducing it.

Brown’s letter is unlikely to change their minds, but they are anticipated to at least start discussing reducing rate increases when they meet on November 1-2.

Despite this and the fact that policymakers aim to avoid politics and assert that their efficacy depends on political independence, Brown’s letter highlights the political environment in which the Fed functions.

Interest rates and unemployment

Like the overall economy, interest rate hikes always affect the labor market. First off, higher interest rates often negatively impact consumer spending and corporate investment, resulting in less hiring and more unemployment.

Industries that generate expensive durable goods and those that depend on long-term finance will probably react to drastically higher interest rates more swiftly.

The construction industry will be one of the worst hits. Home prices have risen to historic levels, and the average 30-year fixed mortgage rate has doubled over the previous years. All other things being equal, higher mortgage rates are likely to discourage home purchases, resulting in a downtrend in home sales.

As real estate investment declines with rising rates, further cooling of the housing market would negatively affect construction industry recruitments. Companies would have to pause recruitment or even lay off some employees when fewer contracts are available.

While public infrastructure initiatives and other non-residential investments may temporarily fuel a sustained demand for laborers in the construction industry, they may not be enough to keep the sector afloat.

The manufacturing industry will also be affected. Rising rates make it more costly to finance expensive, long-lasting items like furniture and cars, which reduces demand. This will slow down production and make companies pause any expansion plans, resulting in fewer jobs.

In his letter, Brown said, “I kindly request that you remember your duty to encourage full employment and that the actions you make at the following FOMC meeting demonstrate your dedication to the dual mandate.”

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Deadline for Second State-Run Retirement Plan Approaches

•••••••Employers with 26 and 99 workers have until October 31 to sign up with the Connecticut state-run retirement plan or withdraw from it.

The second round of employer deadlines is now in effect throughout the state. The registration deadline for businesses with five to 25 employees was March 30, 2022.

The Connecticut Retirement Security Authority introduced MyCTSavings in May 2022.

If they don’t provide their employees with a retirement plan, Connecticut employers with five or more employees who were each paid a minimum of $5,000 in the previous calendar year are compelled by law to join the program.

Eligibility – 

Employers who provide their staff with qualifying retirement plans are excluded from participation, but they must still declare them.

A qualified annuity plan is a tax-sheltered annuity program under Section 403(b), a SIMPLE IRA plan under Section 408(p) is a simplified employee pension plan under Section 408(k), a qualified employer-sponsored retirement plan under Section 401(a) (including a 401(k) plan), and a governmental deferred compensation plan under Section 457(b) are all examples of employer-sponsored retirement plans that qualify.

Employers are neither charged fees nor obliged or allowed to contribute to the scheme. To be eligible for the state-run plan, employees must have been with a covered employer for at least 120 days. Moreover, they have to be at least 19 years old.

Once enrolled, employees can handle the majority of account operations online and are responsible for speaking directly with the plan administrator regarding their investments.

Payroll deduction IRAs do not qualify as employer-sponsored plans.

The pre-tax benefits offered by most private sector organizations’ plans are not available under the state-run plan.

All qualified workers will be registered in the program automatically. Once enrolled, employees have the option to leave it.

Enrolled employees will automatically see a 3% deduction from their gross salary, but they can manually change it at any time.

The state-run retirement plan is a Roth IRA. It lacks the pre-tax advantages of other retirement plans provided by several private sector entities.

The Employee Retirement Income Security Act establishes basic requirements for most retirement and health plans to safeguard enrollees but does not apply to the state plan.

Employers’ obligations

The initiative will automatically enroll eligible employees with a 3% default withdrawal from their gross pay. Employees can change their contribution rate or drop out of the program.

The retirement account of an employee is transferable. They keep their accounts even if they switch jobs.

According to the law, covered employers must:

  • Provide the program administrator with the following information about each employee: Names, Social Security or taxpayer-identification numbers, dates of birth, addresses, and email addresses.
  • Set up payroll deductions for employees and send employee contributions to the administrator.
  • Check employee opt-out and contribution decisions before each payroll submission.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available. Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.

Financial wellness is crucial for overall well-being

Many people may experience financial stress and insecurity as the holiday season draws near. When discussing one’s well-being, it’s common to neglect the importance of financial well-being, which has various effects on individuals.

Financial wellness includes managing bills and costs, paying debts, handling unforeseen financial emergencies, and planning long-term financial objectives like saving for retirement or funding your child’s education. This article outlines the rules and steps to financial wellness.

The Four Rules of Financial Well-Being

1. Set up a budget

Building financial well-being starts with creating and following a budget. A budget makes it simpler to pay your bills on time and save for higher costs like a car or home by keeping track of your spending and eliminating unnecessary expenses.

It offers a guide for managing ongoing finances, getting ready for monetary emergencies, and setting long-term goals. A detailed budget will enable you to identify areas where you overspend and give you more control over your expenses.

Overall, having a budget gives you more financial stability.

2. Debt Repayment

Long-term debt management and eliminating consumer debt can lower saving and long-term financial planning obstacles. Your credit score can rise with diligent credit management, giving you access to better borrowing terms for mortgages, vehicle loans, and other significant purchases.

Pay off your debt as soon as possible, especially credit card debt. It’s always strange to see people with money in their bank account but credit card debt who aren’t making any progress in paying it off.

In addition to charging you extremely high rates on credit card debts, the bank pays little to no interest on your deposits.

3. Investments and Savings

You should save about 10% of your monthly income and invest between 10% and 15%. Savings are for the short term, but long-term investments are better because they help you increase your wealth and achieve specific life goals.

Long-term investments and savings can offer retirement planning financial security and peace of mind. Additionally, having emergency cash on hand to pay for scheduled expenses like holidays, house repairs, and other planned expenses prevents adding to your debt.

4. Security and Coverage

You may be financially protected from unforeseen events by having insurance and emergency funds. Your insurance policy can cover losses brought on by fires, floods, or medical problems.

Similarly, an emergency fund provides coverage for unforeseen situations. Both can help keep you from spending your long-term savings or incurring debt.

Steps to Financial Well-Being

1. Establish a Budget: You must be aware of your monthly financial activities. By creating a budget, you may live within your means and establish practical financial objectives for the future.

2. Establish an emergency fund: Your emergency fund, which should be equal to three to six months of household income, should be funded partially right away. This might help pay for expenses if you lose your job or incur an unforeseen expense.

3. Pay off debt: Know the maximum debt amount you can handle. The more debt a person has, the less money can be saved or invested in increasing their wealth. Paying off debt will raise your credit score, so you can easily borrow money for major purchases like a house or car.

4. Invest your money:  Your savings can grow if you set aside money from each paycheck. Think about various possibilities for short-term savings, like money market funds or conventional savings accounts.

5. Carry money: Spending money can seem a little too simple compared to using a credit card or debit card. But when you have to take out money for every purchase, you become more conscious of your spending. Only withdraw a certain amount each week to help you stay within your budget and reduce impulsive spending.

6. Raise your credit score: A low credit score will prevent you from achieving your financial goals. Pay off outstanding obligations and pay off all new expenses immediately to raise your credit score. You might want to think about setting up automated bill payments so that you don’t unintentionally forget to make payments.

7. Make retirement and other long-term goals a priority: Recognize the interplay between various retirement resources, including Social Security, retirement savings, federal retirement, thrift savings plans, and annuities, to help you generate income in retirement.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Comparing how COVID-19 and the Great Recession affected Social Security claimants?

The media frequently questioned how economic unrest, a health crisis, and a stock market collapse would affect senior workers when COVID-19 shut down the economy in the early 2020s. The inclination at the time was to compare how younger workers responded during the Great Recession. Despite wanting to work longer to make up for lost savings, the scarcity of jobs led many to apply for Social Security as soon as they were eligible at age 62.

Of course, the COVID experience was utterly different from the Great Recession. The Dow Jones Industrial Average first fell by 34%, but it quickly rose again and kept rising.

The National Bureau of Economic Research (NBER) characterized the Recession as the shortest after the economy swiftly reached its bottom. Additionally, the government’s unparalleled assistance for the unemployed made finding work far more appealing than applying for Social Security payments. Nevertheless, older employees continued to retire and get Social Security benefits even though the two recessions had very different characteristics. 

So the study investigated the relative effects of the two recessions on the Social Security-claiming behavior of various groups. The researchers used data from a study to compare how the claim pattern changed from the expansion years 2004–2006 to the recession years 2008–2010 with the expansion years 2016–2018 to the recession years 2020 to ascertain the differences and similarities between the periods.

The research offered three theories based on the peculiar characteristics of the COVID Recession

The COVID recession’s booming stock and housing markets made it easier for wealthier workers to file early claims. At the same time, lower earners who benefited from the expansion of unemployment insurance (UI) are less likely to do so than during the Great Recession. The effects of poor health on early claims would be stronger during the COVID-19 Recession compared to the Great Recession.

The study concentrated on the relative likelihood of early claims for various categories, as it is nearly impossible to comprehend the direct findings of estimating two hazard models.

Health: The findings do not support the idea that the COVID Recession had worse health consequences on early claims than the Great Recession. There are two viable explanations.

First, there is no independent effect of reporting bad health because it is probably connected with other factors, such as income, wealth, and education. Alternately, those with bad health might not have had to leave the workforce because COVID permitted them to work from home.

Wealth: In the area of wealth, it seems that the theory that wealthy workers will be able to file early claims due to the COVID Recession’s growing stock and housing markets is correct.

Workers, particularly those with a defined-contribution (DC) retirement plan, were less likely to make an early retirement claim than workers without a plan before, during, and after the Great Recession and during the pre-COVID boom. As the stock market started rebounding during the COVID Recession, people with DC plans were no longer more likely to file early claims than those without plans.

Unemployment Insurance: During the Great Recession, early claims from low- and middle-income workers were not adversely affected by increasing UI payments; however, the COVID tale was substantially different.

The claim behavior of the workers in the lower terciles wasn’t significantly different from that of the earners in the top tercile when the enlarged payouts became available. Workers in the lower terciles had a substantially higher propensity to submit early claims than those in the top tercile before the COVID Recession.

Overall Effects: Although the discussion above concentrated on changes in relative likelihoods, the hazard model enables one to follow older workers’ whole claim history to determine fundamental changes in the probability of filing an early claim. Early claims increased by 0.8 percentage points during the Great Recession due to the high unemployment rate, whereas they somewhat decreased during the COVID Recession.

Low and middle-income earners took the lead in the decline due to the high UI replacement rates. As such, the increased UI benefits benefited workers in their current circumstances and guaranteed them slightly increased Social Security benefits as they approached retirement.

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

Do All Federal Employees Really Need an Advisor?

If you’ve attended a lecture at a nearby hotel or a sponsored retirement course at work, you may have heard persuasive reasons that claim everyone must work with a financial advisor. They might have used graphs and charts or passionate arguments to persuade you not to pursue a “do it yourself” (DIY) retirement strategy.

They’ll say giving your retirement plan to a seasoned retirement planner is your best chance of financially surviving your retirement years. But is there any truth to this broad statement?

This article examines the need to hire a financial adviser for retirement planning.

• Statement: Federal employees need a financial advisor to manage their financial plans!

• Possible justification for this opinion: Federal retirement is distinctive and challenging. But does it mean federal employees can’t learn how to manage this area of their earning lives on their own?

How can an advisor improve a federal employee’s retirement planning?

A financial advisor’s knowledge, experience, and focus are likely their most essential qualities. Examples include:

• Knowledge of federal retirement systems, multiple planning alternatives, and design variables.

• Understanding the potential effects of investing options on TSP, IRA, SSA, pensions, etc.

• Knowledge of how to plan for desired results that are based on needs and goals.

• Information on potential difficulties that a federal employee might not have considered and strategies for avoiding them, either before or after an event.

• The advisor’s capacity for maintaining concentration in the face of market turbulence. Maintaining composure during rapid market volatility might be challenging when it’s your money.

• Understanding suitable asset allocations and having the tools to get there. During retirement, asset allocations may frequently shift. Inadequate allocations may result in growth that is less than planned or at undue risk.

How can I tell if working with a financial advisor would benefit me?

1. Are you fully aware of how to calculate the potential impact of inflation on a retirement plan?

2. Can you determine an adequate asset allocation mix on your own?

3. Are you aware of your level of risk tolerance and how to find and evaluate an investment portfolio that fits that level?

4. Are you aware of the arithmetic in extending your TSP (or other retirement savings) using your federal pension/annuity and anticipated Social Security income benefits?

5. Can you do math well?

6. Time management — Are you ready to manage your retirement assets daily?

7. Do you think you can manage your retirement savings to a long-term performance level on par with a seasoned financial advisor with a federal focus?

According to research cited by Forbes, DIY investors who deal with financial advisers can expect 3% higher annual returns (after costs) than those who don’t. That might result in a 34.4% larger retirement nest egg in just ten years. (3% annually compounded) According to Forbes, the study “identifies how smart decision-making might boost sustainable lifetime income on a risk-adjusted basis.”

8. Do you have a strategy to deal with potential retirement planning hazards and a list of them?

9. Are you ready to develop realistic plans to meet your goals and demands during retirement?

10. How, when, and why will you know when to adjust allocations?

Methods for vetting prospective financial advisors

Most consultants will gladly accept your money, but it’s strongly advised to go for one who genuinely comprehends federal retirement systems.

Before entrusting your finances and retirement to a financial planning professional (advisor, manager, planner, etc.), ensure they have the necessary knowledge required for the job. Find out first if their primary areas of interest are federal retirement and federal employees.

Avoid working with advisors that cast a wide net and say they “work with everyone” since they are likely unfamiliar with the federal employee retirement system. You shouldn’t entrust your financial destiny to someone who lacks the necessary knowledge, even though they might be good people with the best intentions.

Does everyone need a financial planner?

No two persons have the exact same wants if you accept that no two people are the same. Success may depend on prior knowledge, comprehension of the above factors, and government employees’ needs. The desire to DIY this critical aspect of a federal employee’s financial life should also be considered. Therefore, consulting an advisor may be a wise choice for some people while not being necessary for others.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

How to Select the Ideal Retirement Savings Account Between a Roth And a Pre-Tax Account

Should I fund a Roth or pre-tax account? This question is tricky because it can take decades before you realize whether or not your decision was wise. Financial advisors say that a few crucial elements might make a choice simpler, as well as circumstances where “success” is more likely.

According to Ellen Lander, principal, and creator of Renaissance Benefit Advisors Group with headquarters in Pearl River, New York, “there is no clear answer; therefore, you have to leap.”

Main Distinctions Between a Pre-tax Account from a Roth Account

Americans who fund qualifying retirement accounts like 401(k) plans or individual retirement accounts receive financial benefits under the tax rules. The main distinction between a pre-tax and a Roth account is when savers receive those benefits and when their taxes are due.

Pre-tax accounts give savers an immediate tax break. Contributions are not subject to income tax; instead, they are subtracted from savers’ taxable income, lowering their tax obligation. So they’ll have to pay taxes after they take money out of retirement accounts.

With a Roth account, on the other hand, investors pay tax up front when they contribute but not when they withdraw money in retirement.

The Best Option is a “Tax Bet”

Taxes are the main factor to consider when deciding whether to save in a pre-tax or Roth account. It all boils down to this: Will you pay more or fewer taxes when you retire?

If higher, saving in a Roth account now and paying taxes at your existing, lower rate makes sense. If lower, it often makes more financial sense to save in pre-tax accounts and postpone paying taxes.

The decision between pre-tax and Roth investments is irrelevant mathematically if your current and future tax rates are the same, according to David Blanchett, who’s head of retirement research at PGIM, an asset-management division of Prudential Financial. In that case, you’ll have the same amount saved for retirement after taxes.

However, due to unpredictable personal circumstances and potential policy changes, it is hard to predict whether your future tax rate will be lower, the same, or greater.

Ted Jenkin, a licensed financial advisor and the CEO of oXYGen Financial, described the decision as “essentially just a tax bet.”

A Roth is Ideal for Young Professionals in Most Cases

Financial gurus say that young people in their early twenties and thirties are usually the best candidates for Roth savings.

These young professionals have a good chance of earning higher salaries later in life and enjoying higher living standards when they retire. These higher salary and income requirements could result in a higher tax rate in the future.

“I’d say a Roth account always wins when it comes to younger people,” said Lander. Jenkin, a CNBC’s Advisor Council participant, advises customers of all ages “nearly always” to use a Roth 401(k) or IRA when their federal tax rate is at or below 24%.

This includes married couples and single people in 2022 with taxable incomes under $340,100 and $170,050, respectively.

When a Pre-tax Account is Ideal

Spending usually decreases after retirement compared to one’s peak working-years expenditures. A pre-tax 401(k) or IRA may be financially advantageous since a reduced tax rate may be associated with these lower-income needs.

According to the 2021 Consumer Expenditure Survey, households’ average annual expenditure peaks between the ages of 45 and 54, or about $84,000, while spending decreases to approximately $52,000 annually for people 65 years of age and older.

Naturally, there is no assurance that your tax rate will decrease as you age. Furthermore, some people might believe they can only afford to put money down for retirement if they receive the tax advantage upfront from a pre-tax account.

According to advisers, a pre-tax retirement plan and using the additional cash the tax savings leave in your paycheck to help pay down debt may be a better option for someone with high-interest credit card debt or another sort of loan.

The Benefits of Diversification

Besides advising retirement savers to diversify their holdings, financial counselors frequently extol the virtues of tax diversification, particularly for investors for whom the distinction between a pre-tax and Roth account is ambiguous.

To balance their tax risk, these investors might decide to allocate half of their contributions to a Roth and the other half to a pre-tax account.

“I really like the [option] of half and half,” Lander said. “You’re just partly mistaken.”

Retirees have financial options thanks to the two tax tiers. For instance, retirees about to enter a higher tax bracket may choose to remove funds from a Roth account to meet their income requirements. The individual wouldn’t move into a higher tax rate because a Roth withdrawal doesn’t contribute against taxable income.

Contact Information:
Email: [email protected]
Phone: 8007794183

Bio:
For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. “each time I work with my clients, I’m building their future, and there are few things that are more important to a family than a stable financial foundation.”

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, “Helping my clients – I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income.” Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an ‘aging’ athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Disclosure:
Investment Advisory Services are offered through BWM Advisory, LLC (BWM). BWM is registered as an investment advisor and only conducts business in states where it is properly registered or is excluded from registration requirements. We are currently either state or SEC-registered in the following states: Arizona, Florida, Illinois, Kansas, Louisiana, Michigan, New York, Oregon, Texas, and Washington. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Although we make great efforts to ensure the accuracy of the information contained herein, we cannot guarantee all information is correct. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark. Any comments regarding guarantees, safe and secure investments, guaranteed income streams, or similar refer only to fixed insurance and annuity products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company and are not offered by BWM Advisory, LLC. Guaranteed lifetime income is available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC-insured. Not affiliated with the U.S. Federal Government or any government Agency.

How you can increase your 401(k) savings

It’s been a challenging few months for anyone contributing to a 401(k). Your account balance has probably decreased as the value of both stocks and bonds has decreased. Younger investors should not overreact. Even if you haven’t seen one before, extended down markets are unavoidable. The good news is that they allow you to purchase more shares at a discount.

But regardless of your age, now is an excellent moment to reassess your 401(k) strategy if you’re experiencing anxiety. This is crucial if your contribution amount has not changed since you enrolled in the plan or were enrolled automatically.

This article outlines the steps you can take to increase your 401(k) savings.

How Much Can You Contribute to 401(k) in the Coming Year?

The Treasury Department is required by law to raise 401(k) contribution caps as the cost of living rises. This is consistent with the IRS‘ most current inflation-adjusted tax rule.

The current 401(k) contribution limit is $20,500 (an increase of $1,000 from 2021). You will be permitted to make a $22,500 contribution to the 401(k) plan starting in 2023. You can also make an additional $7,500 contribution if you are over age 50, for a total donation of up to $30,000.

What Happens if I Have a Different Kind of Retirement Plan?

Other retirement plan types, such as 403(b)s, the majority of 457 plans, and federal Thrift Savings Plans, are subject to the new $22,500 contribution cap.

Also increasing is the IRA. In 2023, the IRS will increase the annual contribution ceiling for traditional and Roth IRAs to $6,500. That is an increase of $500 from this year.

Since pensions are getting harder to get, most people must rely on retirement savings (as well as Social Security). Therefore, these inflation adjustments are essential, regardless of your retirement goals.

Steps to Increase Your 401(k) Plan

1. Refuse to accept the standard savings rate

It’s becoming more common for new hires to automatically open a retirement account at work, most frequently by having 3% of their pay put into their employer’s 401(k) plan. But while saving 3% of your income is better than nothing, it might not be enough to support your present standard of living in retirement.

When you earn a raise, save 1% extra each year until you’ve hopefully saved up to 20% of your pay.

2. Get a 401(k) match

The typical 401(k) match is about 50 cents for every dollar saved, up to 6% of gross income. Make sure you save enough money to leverage your employer’s 401(k) match, if available.

3. Continue until you have vested

You won’t be able to keep your employer’s 401(k) match until you have fully vested in the 401(k), which may take up to five or six years of employment with the company.

Depending on their years of service, some employers permit workers who leave before they are fully vested to keep a portion of the match, while others demand that they forfeit the entire match. Working for a company until you reach your full 401(k) vesting benefit might occasionally be worth thousands of dollars.

Contact Information:
Email: [email protected]
Phone: 8007794183

Bio:
For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. “each time I work with my clients, I’m building their future, and there are few things that are more important to a family than a stable financial foundation.”

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, “Helping my clients – I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income.” Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an ‘aging’ athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Disclosure:
Investment Advisory Services are offered through BWM Advisory, LLC (BWM). BWM is registered as an investment advisor and only conducts business in states where it is properly registered or is excluded from registration requirements. We are currently either state or SEC-registered in the following states: Arizona, Florida, Illinois, Kansas, Louisiana, Michigan, New York, Oregon, Texas, and Washington. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Although we make great efforts to ensure the accuracy of the information contained herein, we cannot guarantee all information is correct. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark. Any comments regarding guarantees, safe and secure investments, guaranteed income streams, or similar refer only to fixed insurance and annuity products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company and are not offered by BWM Advisory, LLC. Guaranteed lifetime income is available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC-insured. Not affiliated with the U.S. Federal Government or any government Agency.

10 Simple Ways to Derail a Federal Retirement

Are you planning for retirement? Here are 10 common ways you can derail your federal retirement plan.

1. Simply show up

The days of “putting in my time” and retiring with a prosperous financial life are long gone. This is especially true thanks to the dubious idea of the Minimum Retirement Age (MRA). To maximize your benefits, you’ll need a solid plan.

2. Pay your bills in full before starting any savings

No! Change that. Your income and way of life need to be separated by a wedge. The best people were those who built and sustained that wedge. They never overspent their resources and never even came close to doing so. They advanced in this fashion thanks to raises and bonuses.

3. Take out a loan for tomorrow

The use of TSP loans must be a last, absolutely last resort. Better yet, refrain from doing it. However, this practice results from a poor cash flow plan. Now hear this: debt is not a friend. Although it might be a tool, it is not a fix. One of the pillars of financially successful people is effectively managing and ultimately getting rid of installment debt.

4. Silo Save

Silo Save TSP (Thrift Savings Plan) is great, but it’s not a strategy. The retirees who are the most successful have assets in standard plans like TSP and non-retirement assets. Once your TSP has been maximized, start slipping some cash into a conventional investment account. You can do it alone or with a consultant. Just go ahead and do it.

5. Poor TSP funding

The majority of people don’t optimize their contributions. A sizable TSP balance is required if you plan to retire before age 65. Period.

6. Losing your balance

This means the allocation in your TSP, not market fluctuations. You can’t just have it fixed and forget it, even if you have configured a sensible asset mix among the five main funds in your TSP. Now, you don’t have to try to steer too hard. Remember to take another look at it a year from now if you determine that 40% of your investments should be in C funds based on your age and risk tolerance. You must do more than smile if it is now 48%. It’s time to transfer the surplus to the other funds (the ones that didn’t perform as well). This may seem illogical, but it’s the best decision you can make.

7. Poor TSP technique

Investing 20% in each core fund or a small amount in all funds (including all lifecycle funds) isn’t a recipe for success. Both aren’t entirely in C (since it’s been doing fantastically!). Your asset portfolio should fairly represent your capacity to bear risk in both good and poor times. Trying to time the market or changing your investment strategy depending on “what’s occurring” is a road to tears. Keep in mind that you will require a large balance.

8. Forgetting to bring your umbrella

This doesn’t imply that you should walk with an umbrella to avoid getting wet. It’s about not having enough liability insurance. Nothing can wreck your retirement dreams more quickly than an incident followed by a negative ruling. Get a price on an excess liability umbrella immediately and check your auto and home limitations.

9. Ignoring the risk of long-term care

Insurance rates keep rising (even for Fed plans), but the problem persists. You need to clearly understand your commitments and resources, as well as have a working plan in place. Will you look for care at home? You might require a facility. Right now, ask those challenging questions!

10. Mishandling FEGLI

The Federal Employee Group Life Insurance Plan is your best workplace plan. This does not imply perfection, though. For instance, by law, an employer plan must charge all employees similar premiums for optional coverage depending on age (the unsubsidized part). Therefore, everyone pays the same amount, whether they smoke or not, and as long as they are in good health. As a result, as we become older, these plans get significantly more expensive. This is the truth. Throughout your career, trying to shop around and examine options from the private sector might save you tens of thousands of dollars. Every cent you save can support your retirement.

Contact Information:
Email: [email protected]
Phone: 8007794183

Bio:
For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. “each time I work with my clients, I’m building their future, and there are few things that are more important to a family than a stable financial foundation.”

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, “Helping my clients – I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income.” Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an ‘aging’ athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Disclosure:
Investment Advisory Services are offered through BWM Advisory, LLC (BWM). BWM is registered as an investment advisor and only conducts business in states where it is properly registered or is excluded from registration requirements. We are currently either state or SEC-registered in the following states: Arizona, Florida, Illinois, Kansas, Louisiana, Michigan, New York, Oregon, Texas, and Washington. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Although we make great efforts to ensure the accuracy of the information contained herein, we cannot guarantee all information is correct. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark. Any comments regarding guarantees, safe and secure investments, guaranteed income streams, or similar refer only to fixed insurance and annuity products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company and are not offered by BWM Advisory, LLC. Guaranteed lifetime income is available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC-insured. Not affiliated with the U.S. Federal Government or any government Agency.

part 2

SECURE Act 2.0 raises the RMD age, encouraging tax sheltering.

The SECURE Act 2.0’s costliest provision delays the age when retirees must accept minimum IRA and 401(k) distributions. The SECURE Act 2.0 would raise the age from 72 to 75 during the following decade. Minimum distribution requirements guarantee that savings incentives encourage people to save for retirement and tax savings that went untaxed earlier. Raising the age for required distributions doesn’t do anything for lower-income retirees who need their savings to make ends meet. Instead, it benefits the wealthy by allowing them to conceal more income for longer, avoid paying taxes while alive, and pass on more untaxed assets to their descendants. Using retirement accounts as a tax shelter is apparent since 99.6% of 65- to 70-year-old owners of both traditional and Roth IRAs withdrew from their traditional account in 2016, but just 17% withdrew from a Roth. 

SECURE Act 2.0’s greater catch-up limitations favor high-income savers

Another pricey element of SECURE Act 2.0 would allow near-retirees to make catch-up contributions to retirement funds. Under existing legislation, those aged 50 and older can contribute an extra $6,500 per year ($3,000 to SIMPLE IRAs). The SECURE Act 2.0 would allow 62- to 64-year-olds to contribute an additional $10,000 ($5,000 for SIMPLE IRAs) and index those amounts for inflation. A Vanguard Investors poll indicated that in 2020, just 15% of account holders made a catch-up contribution of any amount, consistent over time. 6 out of 10 account holders with incomes of $150,000 or more made catch-up contributions, compared to 1 in 10 with incomes under $100,000. 58% of individuals affected by the existing contribution limit have incomes of $150,000 or more, and the majority already had bigger account balances.

The SECURE Act 2.0 reduces the expense of increasing retirement tax advantages by encouraging saving to use Roth IRAs.

Savers pay taxes on the amounts they contribute to a Roth account, forgoing the automatic deduction for traditional IRAs or 401(k)s. Roth account withdrawals aren’t taxed, thus increasing the long-term budget costs. Wealthy account owners can use Roth accounts to pass untaxed savings to their descendants, as there’re no minimum distribution restrictions.

Privileging Roth IRAs over traditional accounts worsens existing inequities because these accounts benefit those likely to stay in the same tax bracket in retirementâ€â€higher-income households with more assets. This contrasts those who expect a lower post-retirement tax bracketâ€â€lower-income households with fewer assets. According to TPC researchers:

A Roth [IRA] shields 50% more income from tax than a traditional retirement account for the same dollar deposit. Assuming the same contribution and withdrawal behavior, the Roth IRA contribution costs 50% more (in present value) than the traditional contribution.

Other policies would benefit those more who are most vulnerable to retirement instability.

CAP study recommends reforms for the retirement savings system, including a universal Thrift Savings Plan (TSP) and revising tax-based incentives.

Other modest initiatives might better help individuals who don’t benefit from current savings incentives.

Refundable saver’s credit

Restructuring the saver’s credit, the only retirement savings incentive for low-income households, would be more egalitarian. The existing saver’s credit gives married filers with earnings up to $66,000 a small credit for contributing to a retirement plan. Due to the credit’s design, few qualified taxpayers claim it, and few receive the entire amount. Only 3.25 – 5.33% of eligible filers claimed $156 to $174.34 in credits from 2006 to 2014.

Because the credit is non-refundable, few households claim it. Non-refundability restricts households whose potential credit is more than their federal income tax obligation from getting the credit’s benefit. The House-passed SECURE Act 2.0 would enhance the credit for many middle-income families starting in 2027, but it wouldn’t make it refundable, thus, still excluding low-income savers.

Making the saver’s credit refundable and structured as a match for amounts contributed to an account will allow more of its intended audience to build substantial retirement savings. This strategy, contained in legislation by Sen. Ron Wyden (D-OR)35 and Rep. Judy Chu (D-CA), would aid households most at risk of inadequate retirement savings and decrease racial and other disparities in the existing tax system. Allowing households to utilize the “short form” (1040EZ) to claim the saver’s credit would further improve its effect, comparable to the EITC.

Increase asset limitations in anti-poverty programs like SSI

Asset restrictions in safety net programs prevent many low-income people from saving. The Supplemental Security Income (SSI) program severely limits permissible savings, providing a very low-income floor for the poorest elderly and disabled persons. People are ineligible for SSI if their assets exceed $2,000, excluding a home, one car, and household items. That restriction, which hasn’t been raised in over 30 years, inhibits people from saving even modest sums for unanticipated needs, let alone the large amounts needed for retirement security. Sens. Sherrod Brown (D-OH) and Rob Portman (R-OH) presented bipartisan legislation to index the SSI asset limit to inflation on May 3, 2022. That proposal should be incorporated into all saving-related legislation.

Stop mega IRAs

Some high-wealth households have used loopholes in the existing system to establish enormous tax-favored retirement savings accounts, compared to the modest retirement savings of most Americans. In 2019, less than 500 taxpayers had $25 million-plus accounts, averaging $154 million. Mega IRAs have exploded in the past decade. Between 2011 and 2019, the number of $5 million-plus accounts almost tripled, from 9,05741 to 28,615. Wealthy investors can use these funds to avoid capital gains taxes on the appreciated asset and estate taxes that would otherwise be due on inherited accounts.

Policymakers might minimize high-balance IRA misuse with reasonable measures, including those in drafts of the FY 2022 budget reconciliation plan.

• Limit investments to publicly listed securities, preventing well-connected individuals from sheltering gains on pre-IPO shares.

• Ban backdoor mega IRAs created by transferring employer-sponsored accounts supported by after-tax contributions to Roth IRAs, which have no MDRs. 

These measures would limit high-income households’ ability to exploit retirement provisions to generate untaxed wealth.

Contact Information:
Email: [email protected]
Phone: 9143022300

Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial [email protected] 914-302-2300

Part 1

This article explores a retirement option for FERS employees known as deferred retirement. We’ll talk about the requirements for a FERS employee to choose deferred retirement and the benefits and drawbacks of it.

Some of the Reasons a FERS Employee Might Choose Deferred Retirement

To help understand how a deferred retirement might be the only option for a FERS-covered employee, we’ll look at two scenarios:

Scenario 1: A FERS-covered employee is ineligible to retire and wishes to leave federal employment rather than work the extra years required to qualify for immediate and unreduced FERS annuity retirement. Table 1 shows the three minimum age and years of service combinations that enable a FERS-covered employee to retire under an immediate and unreduced FERS annuity retirement.

Scenario 2: A FERS-covered employee is younger than their MRA, and their agency is undergoing a reduction in force (RIF), a substantial reorganization, or function transfers. The employee is ineligible for retirement and must quit government employment.

A FERS-covered employee is qualified for deferred retirement, and will receive a FERS annuity for the remainder of their life if they meet the following requirements:

• Satisfies the minimal criteria for civilian service.

• The employee doesn’t request a refund of their FERS Retirement and Disability Fund contributions while leaving federal service (made through payroll deduction while working under FERS).

• When the employee reaches the requisite age to begin collecting their FERS deferred annuity, they formally inform OPM‘s Retirement Office of their eligibility for the deferred annuity.

These requirements are explored and clarified more below.

Minimum Civilian Service

A FERS employee must have at least five years of creditable civilian service to be eligible for deferred retirement. Examples of creditable civilian service for this purpose include:

• Full-time or part-time permanent service in which full FERS payments were made to the FERS Retirement and Disability Fund through payroll deduction.

• “Nondeduction” (intermittent or temporary) service for which a total FERS deposit (including interest charges) was made before retirement from federal employment.

• Service for which full Social Security (FICA) payroll taxes and full or reduced CSRS deductions were deducted and not reimbursed.

• For employees eligible for a CSRS annuity component for their retirement (referred to as “Trans” FERS personnel) for deferred retirement:

(1) “Non-deduction” (temporary or intermittent) service subject to CSRS retirement regulations regardless of whether a deposit is made or is considered under the alternative annuity provisions.

(2) Service for which full CSRS retirement payments, typically 7% of salary, were deducted, even though CSRS contributions were returned and not re-deposited.

Non-creditable Civilian Service

The following forms of FERS service cannot be used to meet the five-year minimum civilian service requirement:

• FERS service for which a FERS-covered employee claimed a refund of FERS contributions paid through payroll deduction while the employee:

(1) Previously worked for the federal government.

(2) Resigned from the federal government and claimed a refund of FERS contributions (paid through payroll deduction).

(3) Returned to federal employment but didn’t re-deposit those contributions.

• Any non-deduction (temporary or intermittent) service undertaken before 1989 in which the entire FERS deposit required for FERS retirement eligibility requirements wasn’t completed before departure from service.

• “Non-deduction” (temporary or intermittent employment) conducted after December 31, 1988, unless included in a CSRS annuity component (applicable to a “Trans” FERS employee).

Please note that any unused sick leave time at the time of departure from federal employment would be permanently lost and hence not creditable for FERS retirement eligibility or the computation of the FERS pension, as will be detailed.

When Does a Deferred Annuity Start?

A FERS employee who retires through the deferred retirement option can earn their deferred FERS pension later. The commencement date of the departed employee’s deferred FERS retirement and first FERS annuity check will be determined by the number of years of creditable service the employee had at the time of their formal departure from federal employment.

Table 3 indicates the departing employee’s combination of years of creditable FERS service and the earliest age at which they’re entitled to receive their first deferred FERS annuity payment.

The following are some examples:

(1) As of May 2022, Bill has 32 years of FERS creditable service. Bill is 51 and has an MRA of 57, which he will reach in July 2028. If Bill retires under a deferred retirement plan, his deferred retirement will become effective in July 2028, and he will be eligible for his first FERS annuity check in August 2028.

(2) As of May 2022, Sandra has 23 years of FERS creditable service. Sandra is 48 and will be 60 in June 2034. If Sandra retires under a deferred retirement plan, her deferred retirement will become effective in June 2034, and she will be entitled to receive her first FERS annuity check in July 2034.

(3) Taylor, 38, departed the federal government in May 2017 after six years of FERS creditable service. Taylor will be 62 in August of 2046. Taylor’s deferred retirement will take effect in August 2046, and he will be entitled to his first FERS annuity payment in September 2046.

Contact Information:
Email: [email protected]
Phone: 6122163911

Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.

Allowable FEHB Changes You Can Make Outside of Open Season

Limited enrollment adjustments are allowed at other times when a person has a qualifying life event. Although the majority of changes to the Federal Employees Health Benefits (FEHB) program’s enrollment occur during the program’s yearly open season. Registration or an enrollment change is possible due to the following important events: The family situation changes, like getting married, having a child or adopting one, taking in a foster child, getting a divorce, or the death of a spouse or dependent.

A change in employment status occurs in the following way:

  • When an employee returns to work after being absent from their position for more than three days
  • When an employee resumes their regular pay status after having their coverage canceled while they were on leave without pay status
  • When an employee was on break without pay status for more than 365 days
  • When an employee’s pay increases to the point where premiums are withheld
  • When a worker returns to civilian life after serving in the armed forces
  • When an employee changes from a temporary appointment to an appointment that entails continuing employment.

Due to the covered enrollment being terminated, canceled, or converted to self-only status under another federally supported health benefits program, you or a family member lose FEHB or other coverage under another FEHB enrollment. It could be Medicaid or a similar state-sponsored program for the poor. Furthermore, it could be because your membership in the employee organization supporting the FEHB plan terminates or you enrolled in a non-federal health plan.

When one of these occurrences occurs, you may be able to enroll and modify your enrollment. Modifications include switching from self-only to self-plus-one to self-and-family, enrolling in another FEHB plan or option, enrolling in self-only, or canceling your registration. On the other hand, a change to self-only may be made only if the occurrence causes the enrollee to be the final eligible family member under the FEHB enrollment. A cancellation may also be granted if the enrollee can demonstrate that they fulfill the requirement. That is, as a result of the qualifying life event, they and all eligible family members now have other health care coverage.

The SF-2809 form, available at www.opm.gov/forms, includes a table of the allowable adjustments for each case.

Enrolment Cancellation  You may cancel your enrollment at any time. However, you and any family members covered by your enrollment cannot switch to a nongroup plan or enroll in temporary continuation of coverage if you do so. In general, voluntary enrollment cancellation prevents re-registration in the FEHB program. Request that OPM terminate your enrollment. OPM will provide a detailed explanation of how the cancellation may affect your rights.

Suspending Enrollment  You may choose to put your enrollment on hold. Registrations are typically halted because the enrollee wishes to join a Medicare-managed care plan or be covered as a family member. The coverage could be under another person and family FEHB program enrollment.

Contact Information:
Email: [email protected]
Phone: 9187441333

Bio:
Mark, a lifelong Tulsan graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts in Accounting. Mark served in the United States Army as a Captain in the 486th Civil Affairs BN. Broken Arrow, Oklahoma and retired in 1996. Mark is married to his high school sweetheart Jenny and has four beautiful children. Mark’s passion for his work, which includes over 20 years in the Financial Industry started as an Oklahoma State Bank Examiner. Mark examined banks throughout Oklahoma gaining a vast knowledge and experience on bank investments, small business and family investments. Mark’s experiences include being formally trained by UBS Wealth Management, a global investment firm where he served as a Financial Consultant specializing in Wealth Management for individuals & families. Mark is a licensed Series 24 and 28 General Securities Principal and an Introducing Broker Dealer Financial Operations Principal. Additionally, Mark is a Series 7 and 66 stockbroker and Investment Advisor focusing on market driven investments for individuals, businesses and their families.

Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation.

Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564

Securities cleared through RBC Capital Markets, LLC. 60 South 6th St., Minneapolis, MN 55402

Member FINRA www.finra.org / SIPC www.sipc.org

Broker Check http://brokercheck.finra.org/

Retirement Eligibility Under FERS

When you retire as a regular Federal Employee Retirement System (FERS) employee, your eligibility is determined by your years of service and age. To be eligible for an “immediate” unreduced pension, you must fulfill one of three primary minimum age and service criteria. While there are additional elements to consider when planning for retirement, such as income demands, and health and Social Security benefits, the basic necessities are a great place to start.

Minimum Retirement Age (MRA) with a minimum of 30 years of service

Other than an “Early Out” option, retiring at MRA with a minimum of 30 years of service is the earliest that regular FERS employees may retire without penalty. The FERS employee’s birth year determines the MRA.

Separating at MRA with a minimum of 30 years of service also makes you eligible for the supplement. The OPM supplement is intended to bridge the income gap between retirement and Social Security eligibility at 62. These retirees also maintain their Federal Employee Health Benefits (FEHB) and Federal Employee Group Life Insurance (FEGLI). Remember that regular FERS retirees don’t get cost-of-living adjustments (COLA) until they’re 62.

Age 60, with a minimum of 20 years of service

For employees who may have later started their careers with the government, retiring at age 60 with at least 20 years of service might be a viable “middle ground” choice to still qualify for a penalty-free pension. Like the previous qualification, this retiree is eligible for the supplement and retains their health benefits and life insurance coverage. It also brings them closer to qualifying for a cost-of-living adjustment (COLA). There’s a benefit to working two more years and retiring at 62 with at least 20 years, which we’ll discuss shortly.

Age 62, with at least five years of service

Retiring at 62 with at least five years of service also makes you eligible for an “immediate” unreduced pension. As the Social Security age has been reached in this case, there’s no supplement for retiring at 62 because you can begin receiving Social Security benefits immediately. You would also be allowed to carry over your health coverage and life insurance into retirement. One significant advantage of leaving at 62 is that you don’t have to wait for a COLA.

Pension Calculation

FERS employees who retire in any of the above-discussed scenarios receive 1% annually of service towards their high-3 (the highest average three years of the base plus locality earnings at any point in a FERS employee’s career).

Example: Jen has attained her MRA at 57 with 32 years of service and a high-3 of $65,000. Jen would receive 32% (1% multiplied by years of service) of the $65,000 (her high-3).

$65,000 x 32% = $20,800 annually

$20,800/12= $1,733.33 monthly

Please remember that this example excludes Jen’s income from the supplement.

Age 62, with a minimum of 20 years of service

Employees who reach 62 with at least 20 years of service receive a higher pension calculation. Instead of getting 1% for every year of service, this employee receives a 10% higher calculation of 1.1%.

Example: Peter is 63 years old, has 25 years of service, and has a high-3 of $80,000. Peter would receive 27.5% (years of service multiplied by 1.1%) of the $80,000 (his high-3).

$80,000 X 27.5% = $22,000 annually

$22,000/12= $1,833.33 monthly

Peter doesn’t qualify for a supplement because he retired at 62.

What works for you?

It’sessentialt to be aware of your alternatives and prepare for retirement ahead of time. Just because you achieve your MRA and have those 30 years doesn’t guarantee that the numbers will work out and lead to a good retirement. Working a couple of additional years to earn a COLA right away or a higher pension calculation can make all the difference. It also leads to more time contributing and receiving a match in your Thrift Savings Plan (TSP). All of this will impact your retirement’s success.

Contact Information:
Email: [email protected]
Phone: 9187441333

Bio:
Mark, a lifelong Tulsan graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts in Accounting. Mark served in the United States Army as a Captain in the 486th Civil Affairs BN. Broken Arrow, Oklahoma and retired in 1996. Mark is married to his high school sweetheart Jenny and has four beautiful children. Mark’s passion for his work, which includes over 20 years in the Financial Industry started as an Oklahoma State Bank Examiner. Mark examined banks throughout Oklahoma gaining a vast knowledge and experience on bank investments, small business and family investments. Mark’s experiences include being formally trained by UBS Wealth Management, a global investment firm where he served as a Financial Consultant specializing in Wealth Management for individuals & families. Mark is a licensed Series 24 and 28 General Securities Principal and an Introducing Broker Dealer Financial Operations Principal. Additionally, Mark is a Series 7 and 66 stockbroker and Investment Advisor focusing on market driven investments for individuals, businesses and their families.

Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation.

Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564

Securities cleared through RBC Capital Markets, LLC. 60 South 6th St., Minneapolis, MN 55402

Member FINRA www.finra.org / SIPC www.sipc.org

Broker Check http://brokercheck.finra.org/

Retirement Options with the TSP

How do I use my TSP once I retire? Yes, this is the most frequently asked question by people getting close to retirement, and for a good reason. Nobody is surprised to hear another “it depends” as the response. However, to simplify it, it’s best to divide the options into three categories to weigh their advantages and disadvantages.

The first thing to keep in mind is that until you have been retired for at least 30 days, you are not required to do anything with your Thrift Savings Plan and are not even permitted to do so. You have choices when the 30-day period is over.

Option1: The TSP Annuity

The TSP annuity and the FERS annuity are very different from one another, if not entirely different. With a TSP annuity, you give your TSP funds to MetLife, an insurance provider, in exchange for a lifetime payment guarantee.

An immediate annuity can be purchased in a variety of ways, including:

Life only

Life with period certain

Joint life

Life with remainder

You’ll receive the largest monthly payout from a life-only instant annuity. The monthly annuity payment gets smaller as you add more options. In contrast to a joint life annuity, which would pay out about $2,700 per month, a life-only annuity might pay out $3,000 per month.

A person forfeits access to their TSP balance while choosing one of the aforementioned instant annuity choices. A life with remainder annuity would give the insured income during their lifetime and then pay the beneficiary the leftover balance (the initial purchase amount less the sum of all monthly payments) following the insured’s passing.

Your lifetime income stream is assured with an instant annuity, which is its fundamental advantage. You will already have two guaranteed income sources as a FERS retiree, in the form of your FERS annuity and Social Security. Therefore, giving up access to your investments might not be required to secure the rest of your income.

Pros:

Lifetime income assurance

Cons:

Loss of control over the principle

Subject to interest rates

Inflation might make things more expensive

Option 2: Keep the Money in the TSP

In retirement, you have the option to continue participating in the TSP, which is essentially the same as when you are employed. The two biggest distinctions are that you can no longer contribute and you are not permitted to borrow against your account. In all other respects, your investment options are the same, and you can still modify your account balance in the same way you could while employed.

Access to your assets before age 59 1/2 is one of the main advantages of leaving money in your TSP during retirement. If you retire in the year you turn 55 or later, you can immediately withdraw funds from your TSP without incurring any fees. Employees in the special category (SCE) who retire in the year they turn 50 or later have immediate access to their TSP.

Pros:

Continue to use your TSP as usual

Utilization of your G fund

A quicker and penalty-free way to access your money than an IRA

Cons:

Having only five available investment possibilities

Minimum required distributions from a Roth TSP

Inability to select the funds from which to withdraw money

Potential problems with beneficiaries

3. Transfer to an IRA

The third choice is to move money from your TSP to an IRA. It is possible to transfer funds entirely or in part to an IRA without incurring penalties. To make full and partial withdrawals, use the forms TSP 70 and TSP 77. Your TSP account has each of these forms.

But given how inexpensive the TSP is, why would you want to transfer elsewhere? The TSP is now more expensive than other significant custodians. Ten years ago, the TSP was seen as inexpensive compared to other custodians, but this is no longer the case. In an IRA, purchasing funds or indexes comparable to those in your TSP is now possible. Only your G fund is a particular investment in your TSP.

Moving funds to an IRA has a few advantages. The first is that there are countless ways to invest in an IRA.

Increasing your withdrawal options is another advantage of switching to an IRA. An IRA offers greater withdrawal flexibility, regardless of your withdrawal plan.

Furthermore, transferring funds from a Roth TSP to a Roth IRA can eliminate Required Minimum Distributions (RMDs). Unlike a Roth IRA, a Roth TSP has RMD requirements, while a Roth IRA does not. This gives you more flexibility with withdrawals and lets your money grow and compound income tax-free for a longer period.

Pros:

Additional investment options

Latitude for withdrawals from investments

Roth IRAs don’t require RMDs

Greater adaptability for account inheritors

Cons:

Restricted access until age 59 1/2

No use of the G Fund

Once you withdraw all of your funds from the TSP, you cannot put them back in

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve. In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes. His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

The Winning Streak of Index Funds Faces Risks in Retirement

Investors are used to pouring money into index funds and seeing gains. But are those the best retirement bets?

Rising rates, inflation, and geopolitical upheaval have challenged index funds. Investors wonder if index funds will still be the best ETFs and mutual funds and how active strategies will fit into their retirement portfolios.

Retirement Index Funds Are Hard To Beat

Fund managers struggle to beat market indices over time, as is well-known. Last year was the third-worst for active managers, according to S&P Dow Jones Indices’ biannual SPIVA (S&P Indices vs. Active) US Scorecard for 2021.

Despite good absolute returns, 80% of domestic equity funds and 85% of active large-cap funds lagged the S&P 500. Even worse were mid- and small-cap funds. In the meantime, passive funds saw net inflows while active funds saw outflows.

That said, some market areas usually lean toward active management. According to Morningstar Direct, alternative and unconventional equity active funds saw net inflows at the end of March, and so did bank loans and intermediate core bonds.

Active vs. Index Retirement Funds

How should retirees or those planning for retirement compare active and passive index funds?

Active investing gets a poor rap because passive investment supporters don’t consider the reality of the investor situation. And retirement is one where active investing is important.

Simply put, we all are active investors because everyone buys and sells. Rarely does someone buy something, put it in a safe-deposit box, and never change it. So we all become active investors sooner or later. The question is, how active are we and whether it’s a quantitative, disciplined process?

Including Active Investing in Retirement

Active investment should always be part of a portfolio because it’s hard to foresee when to switch. Risk management and reducing losses are crucial for retirees.

If you take a hit early in retirement, you have less money to live on. If you restrict portfolio losses through risk management, you can be reactive to the market and lower overall losses.

For Significant Downturns, Look Beyond Index Funds

Diversification isn’t enough. It helps in short, shallow market downturns known as “baby bears” – corrections of 0-20%. Most retirees’ diversified portfolios can handle it. The concern is the “grizzly bear” – a 30-70% downturn.

All asset classes are connected during these prolonged downturns. Diversification isn’t a grizzly bear market protection. Risk management and active management are designed for grizzlies.

If the grizzly bear hits early in retirement, it punishes you. So, it’s crucial to protect retirement capital.

Combining Active and Index Funds?

Now it’s a perfect moment to explore active versus passive strategies.

Active and passive aren’t mutually exclusive; both are used in client portfolios. Passive investment has cost and market exposure advantages. While active investment can provide a complement or increased market exposure in some sectors you want to be exposed to.

Active can deliver a higher risk-adjusted return in uncertain markets where we are now. Our message isn’t only about returns. Our overall message includes risk, where active gets incorporated. We’re looking for the highest risk-adjusted return.

New Investors Favor Index Funds For New Money

Some of the greatest mutual funds and ETFs are on thin ice, with the S&P 500 down over 10% and the Nasdaq down 18%. Index funds gained $15.3 billion in the first quarter amid overall sluggish flows, while active funds lost $6 billion.

Market weakness likely prompted investors to buy index funds. Areas like alternative investments helped diversify portfolios as markets dropped. Alternative fund assets climbed 9.3% in the third quarter. That’s the third-highest growth rate of any category group since 2011.

Index Fund Active Investing

Investors can employ indexed strategies tactically or actively. Passive doesn’t mean inactive.

Investors can retain a core indexed strategy but pick between a market-cap-weighted or fundamental indexing strategy. Investors can then supplement their portfolios with market-weighted or active funds. Active funds typically handle less liquid areas like fixed income or emerging markets.

Be Aware of Fees

Long-term investing must be disciplined. And that means taking into consideration taxes and fees. People have been calling for active vs. passive investing for a long time, but it hasn’t worked out. 

Some things have changed in the past year that haven’t changed in decades. Increasing interest rates to fight inflation is one of those changes. The decades-long easy monetary policy is ending.

The result will finally reward companies for excellent fundamentals, not just momentum. Being active and finding firms with a solid foundation is crucial.

Active investing should now encompass active product-level selection, like active mutual funds or ETFs.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

3 Strategies to Lower Taxes and Maximize Your Income In Retirement 

When people begin to plan for retirement, they frequently concentrate on one primary goal: saving enough money to retire comfortably when the time comes.

Unfortunately, that’s often where the planning ends, which means some crucial details may be overlooked, such as:

• Determining how to turn those accumulated assets into a steady income stream to support the desired lifestyle.

• Investigating tax techniques you can adopt to keep and pass on retirement savings to your heirs.

Creating a strategy that distributes your assets in the most tax-efficient manner possible can assist you in achieving your retirement and long-term objectives, but it’s not an easy undertaking. And if you wait too long, you may miss out on some of the Tax Cuts and Jobs Act of 2017’s significant tax savings, as many of its provisions are set to expire at the end of 2025.

Here are three tax strategies to improve your retirement strategy in the future:

Convert Traditional IRA to Roth IRA 

Are you worried about future tax rates, particularly when RMDs kick in at age 72 (75 soon)? Converting a traditional IRA to a Roth IRA could help you and your heirs save money on taxes in the future. Consider the following scenario:

Our office currently assists a client who wishes to withdraw approximately $60,000 per year from an IRA when she turns 72. That, along with her other sources of income, is all she expects to require. However, based on what she currently has in her account and a projected 6% growth rate, the amount the government requires her to withdraw could be closer to $90,000—or even more.

Fortunately, according to the Tax Cuts and Jobs Act, she can convert her traditional IRA to a Roth convert at a 3% lower tax rate until the end of 2025. She’ll have to pay taxes on the money as she moves it, but her savings can grow tax-free after being safely deposited in that Roth account.

Giving to Charity to Reduce Taxable Income

A CRUT is an estate-planning mechanism that pays a named beneficiary income. After the beneficiary passes away, the trust’s remaining assets are distributed to a charitable organization of their choosing.

Using NUA Distribution to Make the Most of Company Stock

If you’re concerned about the tax burden you’ll face in retirement, you might consider putting up a net unrealized appreciation (NUA) payout.

Employees with corporate stock in a 401(k) can roll those shares over to a brokerage account and pay tax only on the stock’s cost basis at the time of distribution under the NUA rules. The account holder will pay taxes at more favorable long-term capital gains rates than ordinary income tax rates when those shares are sold.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

Only 1% of participants aced this Social Security retirement benefits quiz. Why should you check your expertise before making a claim?

When to start collecting Social Security may be one of your major retirement decisions.

Many who are at or near the age to choose may need to review the program’s guidelines.

MassMutual handed 1,500 55-65-year-olds a 13-question true/false quiz.

65% of students failed or received a D. 18% of respondents achieved a C, 12% a B, and 6% an A. Only 1% of responders got 100%.

Claiming benefits is one of two time-sensitive retirement decisions. The other is health insurance.

There are specific rules, deadlines, and dates that you have to meet. And if you’re not careful, you may learn that oversight is costly.

Consider your age-based perks. Based on their earnings history, most persons approaching retirement will receive their full benefits at age 67. Delaying until age 70 will increase their monthly payouts.

Personal circumstances, such as a spouse or children who may benefit from your claim, are also important.

The quiz is available below, and you need to answer each of the statements with true or false. Then you can look at the correct answers found at the bottom.

If you want to review Social Security‘s rules, an excellent place to start is the agency’s website.

True or False?

1. Early filing (before my full retirement age) reduces benefits in most cases.

2. If I get benefits before my full retirement age and keep working, my benefits may be reduced depending on how much I earn.

3. My spouse can get benefits from my record even if they have no personal earnings history.

4. If my spouse dies, I’ll get both my full benefit and theirs.

5. If I’m in a same-sex marriage, Social Security retirement eligibility criteria are different.

6. The money deducted from my paycheck for Social Security is deposited into a particular account for me and stays there, accruing interest until I begin receiving Social Security payments.

7. Current law could lower Social Security benefits by 20% or more by 2035.

8. If I file for retirement benefits and have dependant children under 18, they may qualify for Social Security too.

9. If I get divorced, I could claim Social Security based on my ex-spouse’s Social Security earnings record.

10. According to the current Social Security law, the full retirement age is 65, regardless of birth year.

11. If I delay Social Security past 70, I’ll keep receiving delayed retirement credit increases every year I wait.

12. Social Security retirement benefits, like withdrawals from a standard individual retirement account, are subject to income tax.

13. To get Social Security benefits, I must be a U.S. citizen.


Answers

  1. True (89% of respondents answered this question correctly)
  2. True (82%)
  3. True (72%)
  4. False (68%)
  5. False (65%)
  6. False (62%)
  7. True (60%)
  8. True (58%)
  9. True (57%)
  10. False (56%)
  11. False (49%)
  12. False (42%)
  13. False (24%)

Contact Information:
Email: [email protected]
Phone: 0

Bio:
Mickey specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. His mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mickey’s job to be an expert on the various programs and to stay on top of changes.

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.

Feds are better prepared for retirement than most thanks to their pensions

How are your retirement savings coming along? There are several ways to gauge success in retirement planning, and you’re performing better than 74% of employees in one of them. What is that way, you ask? A defined benefit pension, such as FERS, is one option. The Bureau of Labor Statistics (BLS) reports that 26% of civilian workers have a pension. Only 16% of private-sector workers have a pension, compared to more than 3/4 of state and local government workers.

In retirement, your FERS pension will be a valuable source of income. In terms of current value, someone with a FERS pension of $30,000 per year would need to save around $1,500,000 to obtain that income level. Your FERS pension includes a modified Cost-of-Living Adjustment (COLA) and is guaranteed for the rest of your life. You’ll never run out of FERS money, and you won’t lose much ground due to inflation. In reality, in years when inflation is less than 2%, you won’t lose anything; in years when inflation is 3% or more, your pension rise will come behind inflation by 1%. The latest FERS COLA was 4.9%, based on a 5.9% rise in the Consumer Price Index (CPI). However, unless you are a special category employee/retiree, you won’t begin earning the COLA until you’re 62.

However, until you have around $1,500,000 in your TSP, you won’t be able to depend on a $30,000 annual income from your TSP. It’s possible that if your assets do well, you’ll be able to draw $30,000 every year, but this isn’t guaranteed. Check your TSP balance and compare it to the figures below, which represent the median net worth of families by age:

• Under the age of 35: $13,900;

• Age 35-44: $91,300;

• Age 45-54: $168,600

• Age 55-64: $212,500;

• Age 65-74: $266,400

• Over the age of 75: $254,800

Remember that “net worth” covers more than simply retirement savings, so if you have saved more than the sums listed above, you’re doing better than more than half of your age group.

So far, we’re probably happy with ourselves and our position concerning our age group, not to mention that we have our FERS pension. I believe our situation has something to do with our net worth as well. The following are the median net worth numbers for several types of families:

• Every family $122,700

• Households worth $255,000

• College graduates worth $308,200

• The top 10% $1,589,300

The chances of a nice retirement for government employees are good. Examine your situation to evaluate if it is advantageous to you.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

Don’t Let These Retirement Tax Surprises Hurt You – Todd Carmack

Three Tax Surprises You Should Watch Out For When You Retire 

Taxes are unavoidable in every stage of life, including during retirement. Retirees are required by law to pay different forms of taxes on their benefits. While you are preparing for retirement, you should also consider the taxes you must pay. Failure to do this could result in serious financial troubles later in life. 

Here are the major key tax issues to keep in mind while planning for retirement: 

Expect Taxes on Social Security 

It could be surprising for seniors to find out that they have to pay federal taxes on their Social Security benefits. And these taxes do not necessarily consider retirees’ income levels. Whether your income is high or low does not determine if you will pay taxes on your Social Security benefits or not. 

To calculate your post-retirement Social Security taxes, the IRS uses your provisional income, which is the sum of your non-Social Security income and 50% of your total annual benefits. An unmarried recipient whose provisional income exceeds $25,000 will have 50% of their benefits taxed. They could also have 85% of their benefits taxed if their provisional income is beyond $34,000.

On the other hand, couples enjoy slightly more freedom on their benefits. If their provisional income exceeds $32,000, they have to pay taxes on 50% of their benefits. If it exceeds $44,000, they pay taxes on 85% of their benefits. The limit might seem more considerate for couples, but that is probably because the rules have not been revised in decades.    

That is just for federal taxes. Most states do not tax Social Security benefits, but the following states do: 

• Colorado

• Connecticut

• Kansas

• Minnesota

• Missouri

• Montana

• Nebraska

• New Mexico

• North Dakota

• Rhode Island

• Utah

• Vermont

• West Virginia 

If you live in any of these states, you will have to cough up more of your Social Security benefits to fulfill your tax obligations. 

Extra Tax Burdens from RMDs

Required Minimum Distributions (RMDs) tend to add more tax pressures to your finances. As soon as you turn 72, you will be required to make withdrawals known as RMDs from your traditional IRA. However, you will avoid the extra taxes with a Roth IRA. 

RMDs also increase your provisional income. If the increase is significant enough, you might need to pay even more taxes on your Social Security benefits. To avoid the extra tax burden that comes with RMDs, you should consider using a Roth IRA instead of a traditional IRA. If your income is too high for a Roth IRA, you should consider converting your traditional IRA to a Roth IRA instead. 

You May to Pay More on Property Taxes 

While many individuals are lucky enough to pay off their mortgage before retirement, the battle does not end there. They still have to contend with property taxes, which are compulsory and bound to rise with the property’s value. If your property taxes rise exponentially, the only solution is to appeal to the rise and hope for the best. 

Taxes are generally cumbersome, but the worst can happen if you fail to consider them when making retirement plans. Adequate awareness and proper preparation for unavoidable taxes could save you from a lot of unpleasant surprises and financial difficulties during retirement.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision. Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

How Will The Economy Handle More Retiring Early

Millennials trying to figure out how to make their retirement savings last their entire lives may want to consider retiring early. However, there are several factors to consider.

People should keep in mind that retiring before the traditional retirement age of 65 may impact their Social Security income. If a person retires before reaching the age of eligibility for Social Security, their payments will be reduced.

When calculating how much money is needed to retire at 62 or 63 rather than 65, individuals should use the average life expectancy for their gender and race group. If this information is available online, people will better understand how much money they should save.

If a person earns less than they would at their current job, it may be advantageous to retire early. By planning for this, individuals can often work toward paying off debts, accumulating more money, and researching different options for retirement savings.

When weighing early retirement benefits, individuals should consider the income taxes withheld from their paychecks. Retiring before 65 could result in a sizable tax refund, depending on how much is deducted from each paycheck today. However, because Social Security benefits are not taxed, taking advantage of an early Social Security withdrawal will not affect the amount paid after retirement.

When determining the best time to retire, consider the type of lifestyle desired in the future. Some people will want to work into their retirement years, but most retirees do not want to work indefinitely, even though the law doesn’t require them to stop working.

If a person is concerned about having too much income tax withheld, they may be able to make changes with the Social Security Administration (SSA) each year. This ensures that taxes are deducted from retirement paychecks paid for any outstanding taxes. Anyone who wants to avoid paying more taxes than necessary should experiment with changing their tax withholding throughout the year.

Someone who has achieved an early retirement goal is delighted because they have met one of their goals  someone who works hard to save money.

According to new data from the New York Federal Reserve, Americans are less likely to work into their 60s. A July labor-market poll found that 50.1% intend to work past the age of 62. According to Bloomberg, this proportion is down from 51.9% a year ago and is the lowest since the Fed’s study began in 2014. The number of Americans who expect to work until the age of 67 has fallen to 32.4%, from 34.1% a year ago.

While early retirement benefits individuals, it may harm the US economy. Using Bureau of Labor Statistics data, Business Insider reports that since COVID-19 came to the United States in February 2020, more than one million older persons have departed their jobs.

Official numbers show that over 1.5 million Americans blamed the pandemic for their absence from work in August, while others were likely absent due to a lack of enticing job opportunities. The most recent Fed data, according to Insider, also suggests that early departures are the new normal rather than a pandemic-era phenomenon.

Early retirement, according to Insider, may push employers to refocus their attention on younger employees since businesses have become more reliant on older workers over the last two decades. According to the Bureau of Labor Statistics, employment for those under 55 has remained largely consistent since 2000, while employment for people over 55 has increased by about 20 million people. This shows that the American economy has become more reliant on employees who will retire in less than a decade.

Employers will have to begin looking to younger generations to fill the positions of those who are retiring. This won’t be easy given the changing demographics of the American population. While older Americans are leaving the labor force in greater numbers, the millennial generation is entering the labor force at a much lower rate than previous generations.

Some 80 million Americans were born between 1982 and 1998, making the millennial generation the most educated generation in United States history. Unemployment rates are twice as high as in previous generations. This could be because employers prefer individuals with more experience, which can be challenging to find when looking for work.

On paper, early retirement appears appealing, but many people overlook the fact that working less means losing money. They can’t afford to buy everything these days on their current salary, which may cause problems when the bills start coming in.

People must have a goal in mind to determine whether or not now is the best time to retire. If there isn’t one, figuring things out before retiring is a good idea because it gives them time to decide whether or not now is the right time to retire.

Contact Information:
Email: [email protected]
Phone: 9187441333

Bio:
Mark, a lifelong Tulsan graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts in Accounting. Mark served in the United States Army as a Captain in the 486th Civil Affairs BN. Broken Arrow, Oklahoma and retired in 1996. Mark is married to his high school sweetheart Jenny and has four beautiful children. Mark’s passion for his work, which includes over 20 years in the Financial Industry started as an Oklahoma State Bank Examiner. Mark examined banks throughout Oklahoma gaining a vast knowledge and experience on bank investments, small business and family investments. Mark’s experiences include being formally trained by UBS Wealth Management, a global investment firm where he served as a Financial Consultant specializing in Wealth Management for individuals & families. Mark is a licensed Series 24 and 28 General Securities Principal and an Introducing Broker Dealer Financial Operations Principal. Additionally, Mark is a Series 7 and 66 stockbroker and Investment Advisor focusing on market driven investments for individuals, businesses and their families.

Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation.

Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564

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