Financial Planning
The Federal Employee Financial Plan
Federal Employee Financial Plan
Are you a Federal Employee? Do you realize how important a financial plan really is at every stage of your life?
Having a financial plan is probably the most important part of managing your financial life. Having a sound, flexible financial plan today is more important than it has ever been. Resources are limited and the needs of families are increasing without the financial resources to support them.
More and more Americans are unemployed or underemployed than ever before in recent times. Military service personnel have returned from two wars and unfortunately for many there are no jobs waiting to welcome them home and to thank them for their service to the nation. A student of mine told me that financial plans are like ether if you don’t have a job. He said what is the need to discuss plans if you don’t have money?
His assertion was about half and half. You don’t need money to plan, but you do need a plan if you expect to acquire anything whether it is money or building a spaceship. Neither endeavor just sort of happens for most individuals. Some individuals are born into financial stability and even with that they must have a plan to keep the financial stability that is a part of their birth. For those of use who aren’t as lucky, the planning is even more important.
Plans are needed for every aspect of our lives to be successful. Not everybody will actually put pen to paper and actualize formal plans. In order to see where you are going and where you need to go to make your plans a reality, I would suggest putting pen to paper or fingers to keyboard to chart your path, layout your plans. Plans are made to change that is why good plans have a degree of flexibility. Just as life changes, the best laid plans also change.
There are so many things we have to keep up with today and although automation makes it easier, we still need to organize our goals and objectives. We need to set goals that are specific. We need to determine exactly what it is we wish to achieve. We also need to set goals that we can both measure and manage. Don’t worry about the kind of goals someone else is setting. Your goal setting should be unique and tailor-made for you. Check to make sure you can reach the goals you set by ensuring they are realistic with sensible time horizons. Make sure your goals are SMART.
If you have to change and/or amend your goals as circumstances change, go right ahead. After all, they are your goals. They are your goals for the future. Thinking about and actualizing a financial plan or just a plan for your life that includes all aspects of your life is the best investment you can make in yourself.
To my student, I applaud him because he was thinking and he is very concerned about securing a stable financial future for himself. I know that because he is a student who has now secured a rather handsome internship with the Federal Government. He now has a job and he is discussing plans for his future because he now also has some MONEY.
P. S. Always Remember to Share What You Know.
To begin your financial plan you should consider the Thrift Savings Plan.
What does you Estate Plan look like and how early should you start?
Nursing Homes and Your Assets
Your Assets with Nursing Homes
It is estimated that 70% of Americans will need long-term care at some point in their lifetime.
Choosing to put a family member into a facility outside of their home carries a high emotional as well as a huge financial price tag. Family members struggle to find resources to locate care for family members who need it. If the decision comes down to putting a family member in a nursing home, then there is the question of what will happen to the family member’s assets.
There are some assets that are protected when individuals are placed in nursing homes and apply for Medicaid assistance. Many individuals enter nursing homes and pay for the services initially out of pocket. If they are on Medicare the cost of long-term stays is generally not covered. Therefore, when the resident’s resources are exhausted they may become eligible for Medicaid assistance.
In the event the resident qualifies for Medicaid it does not means that all of the individual’s assets will necessarily be turned over to the Nursing Home in order to recoup the cost of services rendered. If a spouse is in a nursing home and the other spouse is not, the couple’s home is not compromised or sold to pay the nursing home charges. The family is entitled to one car or truck, a burial plot and prepaid non-refundable funeral costs. Certain other dependents living in the home may qualify for the same protection to stay in the home as the spouse.
There is a federal law identified as the ‘spousal impoverishment’ rules that protect spouses of nursing home residents from losing all of their income and assets to pay for the care of a spouse receiving care in a nursing home. Medicaid laws differ state-by-state. It is therefore suggested that you visit the Medicaid Office in the state where you reside for additional information and resources or work directly with a financial advisor who understand Medicaid rules and can help you during this trying time.
It should also be noted that all nursing homes do not accept Medicaid. If you are looking for assistance when having to use the services Medicaid then you would want to locate Medicaid Certified Nursing Homes. There may also be nursing homes that are not necessarily Medicaid facilities but may have Medicaid beds. So if your ability to pay for services while in such a facility is depleted, it is always a good idea to ask if the facility has any Medicaid beds which would prevent families from having to move their loved ones to another facility.
Pre-planning ahead of time allows families to make better decisions. This is when having a well constructed financial plan can make such a huge difference. If you’ve been working with a good financial professional then it is likely that you’ve covered this contingency. Possibly purchased a long-term care insurance policy or maybe even established a Trust that specifically works to protect assets in the event of extremely high nursing home costs was put in place. It is important that families know the rules and laws that govern Nursing Home facilities and assets, exemptions and non-exemptions. Laws may vary from state-to-state making it urgently important to read carefully and collect needed information to make an informed and timely decision.
Contact the National Academy of Elder Law Attorneys to find out how the laws work in your state.
P. S. Always Remember to Share What You Know.
MORE ARTICLES
Financial Professional – The Right Choice for Federal Employees
Federal Employees and Choosing a Financial Professional
Retirement planning for federal and postal employees can get pretty complicated, which is why we recommend that federal employees should seek out the guidance of a qualified financial professional to help them. Many individuals do their own retirement planning; while others seek the advice and counsel of a professional to set them on a path to retiring well. Below are some tips and recommendations for choosing a financial professional to help you handle your financial future.
• Seek a financial professional who has demonstrated they are experts in the federal or postal retirement market. These professionals have fulfilled the rigorous training, testing and ethical standards required to achieve various designations.
• Find a local financial professional who knows about your Thrift Savings Plan along with the in’s and out’s of Federal Employees Group Life Insurance (FEGLI), Federal Employees Retirement System (FERS) & Civil Service Retirement System (CSRS).
• Ask for references, preferably current and past clients, before you begin any legal work.
• If you decide to use an attorney for your estate planning needs choose one that has at least 10 years of experience in estate planning. This is a very complex field with different probate and wealth laws in every state. The attorney you choose must be keenly aware of these laws and how they apply to your personal circumstances.
• Make sure that the attorney you choose is licensed to practice law in your state of legal residence.
• Check organizations and licensing boards for background information. Also check with continuing education associations focused on estate attorneys. These associations generally draw well qualified attorneys to their ranks.
• Evaluate the listening skills and communication style of any advisor or attorney you are considering. If the professional is short and impatient and does all the talking without giving you the opportunity to chat and ask questions, no matter how talented, you may want to keep searching.
• Do your homework. Ask the professional if they’ve received any special training in federal employee retirement. Check their credentials, see if they have any third-party endorsements or have been published on subjects similar to your questions.
In choosing a financial professional you are selecting a partner – a person who will likely be working with you for years to come. Therefore, you want to make sure that you are hiring the most qualified financial professional you can find.
P. S. Always Remember to Share What You Know.
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Thrift Savings Plan (TSP) Withdrawal Options
For Postal Employees – LiteBlue and the TSP
Is All ‘Your’ TSP Money Actually Yours?
Planning Your Retirement
Getting Help Planning Your Retirement
Getting involved early in planning will allow federal and postal workers the opportunity to create additional financial resources to increase their retirement comfort. We always hear the phrase, “Know Your Number” – the amount of money you will need to retire with financial security. This is especially important when you consider your Thrift Savings Plan and also your CSRS or FERS annuity.
There are many on-line calculators that can be used for that purpose to evaluate estimates. There is really no guaranteed formula for calculating exactly how much money you will need in retirement. There are strategies and planning, however, that will give you a fairly good estimate and ways to get there. Although every situation and circumstance is unique to the individual it is still a good plan to gather all of your financial information and to engage a financial planner or adviser who has been trained in your federal retirement benefits.
Finding a financial adviser is not one-stop shopping. Finding the right fit for you requires some research, some investigation, perhaps a referral and just trusting your gut. Putting all of your plans in place to retire well is one of the best gifts you will ever give to yourself.
P. S. Always Remember to Share What You Know.
