retirement
Retirement is the process of hanging up your boots and predominantly ending your employment tenure. Many people retire when they fail to find the energy and the enthusiasm to work anymore.
Retirement and 4 percent
Retirement and the 4% Rule
The financial services industry has been depictive in the past 2 decades or so of the fact that the retired officials of the federal government have a great chance of making their savings outlive them if they align their spending and savings in such a way that they manage to limit their withdrawals to around 4 percent every year to spend on living expenses.
4 percent of Retirement:
Retirement is a phase that is going to dawn upon you as a federal employee, and this 4 percent rule’s inception dates back to the early 1990s and at that time the Federal Funds interest rate ranged from 8.1 percent to 6.24 percent. The interest rates of today have been near or at 0 percent for so long now that realists believe that the 4 percent rule is something that can be considered obsolete.
Nick Besh, who is an investment director at the Wealth management of PNC says that the 4 percent distribution was very achievable when you look at the rates of the past when you could make conservative investments. He believes that now if somebody makes investments in the same manner in money bonds and markets, then they are liable to only getting around 1 percent.
This situation leads to a need to invest more rigorously and fast. There are a lot of factors that come into play when you are deciding on your safe withdrawal rate and some, as mentioned by Nick are: Your life expectancy, market return expectations, timing of the distributions, retirement portfolio size and of course risk tolerance.
These truths are around us for a long time now and to be realistic in the world of today is the only way to survive. Making withdrawals might make your present life happier but post retirement life can get hampered in the process.
Retirement tips for people of all ages
[Photo credit: Lending Memo]Retirement for most is something that looks placed in the very distant future but in the world of today, to have a sustainable post-retirement life, you need to start preparing as soon as you possibly can. It doesn’t matter whether you have realized this at 20, 30 or even 50, if you have realized it before your retirement age has dawned upon you, then you still have time. Following are some retirement tips available for people of all ages:
Retirement tips for all:
20s:
IF you are in your 20s you need to realize and understand the concept of time value of money. You might have just ended your academic career and have landed a job that pays you a fair amount. The blood that is currently running in your veins is adequately paced so the thought of saving for retirement is unlikely to cross your mind. But this is the time to think about the time when you won’t have the energy to make a living for yourself. Researchers believe that this is the most ideal time to start living your life according to a budget and saving as much as you can.
30s:
If you are in your 30s, you have looked at and understood life a lot. You need to balance your spending and save money from now on. If you have a family, then you will probably do it anyway but if you are planning to settle, then make sure you are on the right track when it comes to saving.
40s and 50s:
This is arguably the most critical stage. Retirement now shouldn’t feel like being far away. Now you desperately need to shift towards building your retirement income. Get the guidance you need and start investing in retirement plans.
60s:
At this stage, you are of course retired. You need to spend the money you have according to the amount you have left. IF you saved enough, at this stage, you will live some of the best years of your life.
How to make your retirement savings plan risk-free
Retirement plans are talked about a lot these days in workplaces and between federal employees. A good retirement savings plan can go a long way in making a retiree live a prosperous life. Some workspaces provide the facility to invest in a plan automatically but participation is only one step in the right direction. Another thing to remember and pay heed to is the risk management that’s essential. Following are some of the reasons how you should tackle the risks that you might encounter:
Make your retirement savings plan risk-free:
- How risk tolerant are you?
You are going to have to deal with some degree of risk no matter what the nature of your investment might be. You need be self-aware firstly and this will allow you to choose the investment plan that suits your nature best. You might also be provided with some tools to manage your risk tolerance potential as well.
- Diversity:
Diversification is always desirable. Everybody can benefit from it. Don’t put all of your investments in to one plan and always try to consider a varying mixture of bonds, cash and stocks.
- Regular maintenance:
Maintenance needs to be done regularly as well. IF you need to make sure that you don’t have to deal with any undesirable happening at any time, then you need to make sure that you keep your eyes open and not be naïve all the time.
- Allocate your assets properly:
Always allocate your assets in the best way possible. There are a lot of categories available to invest in and this requires you to divide your assets accordingly.
Savings plan are good for every employee but at times they can also end up hurting you so it’s always recommended to pay proper heed to risk maintenance in this regard.
Police retirement benefits need to be restored
The Utah Legislature is now in session and the legislators will do themselves and the general public a lot of good if they urge the Utah Retirement board to go back on their previously formed decision concerning the retirement benefits of law enforcement and correctional officers and reverse it.
Restore the police retirement benefits:
The concerned officers are servants of the society and they need to be compensated accordingly for their valour and service. Previously, they were liable to achieve retirement upon 20 years of service and then receive 50 percent of their last pay. The new plan, that is regarding the police and other law enforcement officials requires agencies to hire qualified men and women and make them work at-least 25 years before they can get retirement. Also, they would now only be liable to receive around 37.5 percent.
This decision is not the ideal way of thanking the men and women who took upon the responsibility of wearing a badge with pride and honour. The final decision lies in the hands of the board but it’s the legislators’ responsibility to make their voices heard to the board and possibly restore the retirement benefits that the officers deserve.
How Obama plans to change retirement accounts
2015 saw the introduction of a new retirement account by the name of myRA and there was a lot talked about the account as well. In the budget that is set to hit center stage in 2017, President Obama plans on making some changes in the retirement accounts as well:
How retirement accounts will change in 2017:
- Automatic IRAs: Employees are almost all the times automatically added to the workspace’s 401(k) plan unless they vote out of it. In the coming budget, the President intends to automatically enrol all of the employees into individual retirement accounts. This is indeed a great initiative.
- Employers will have larger tax breaks: Small businesses and their owners are liable to receive tax credit whenever they set up a new retirement plan. The President wants to triple this credit and make the amount go up to 1500 dollars per year for as much as 3 years for small companies that offer retirement plans.
- Port your benefits: The budget will also make the proposal to allow the funding of pilot programs that will be helpful in making benefits portable for those people who would like to change jobs.
- Participate part time: Employers will have the authority to not include the part-time employees in the retirement plans of the country. To be considered eligible for a retirement plan, you would have to work at-least 500 hours per year for 3 or more years.
- 401(k) plans but pooled: Small businesses find it excessively hard to set up and then manage the 401(k) plans. Currently employers that have a “common band” can establish 401(k) plans. Obama intends to remove the common bond requirement.
These alterations are looked forward to by many of the retirees and they can help the federal government in making the post-retirement lives of retirees a lot better.
How the Government is making it easy to make retirement savings
If you are somebody who lives from paycheque to paycheque, then it’s really hard to save for retirement. The US Government with the never ending urge to help the society is trying to make it a little easier for you to make retirement savings.
Retirement savings made easier:
The retirement savings contributions’ credit is not given much attention most of the times. The credit, the objective of which is to provide the low earning workers to make voluntary contributions to their 401(k) or IRA plans. This has been indicated by the Internal Revenue Service.
This credit will be given in addition to the income on tax returns’ reduction for all the contributions to the retirement plans.
Just like the deductions or the tax credits, the credit phases as the incomes become higher in amounts. The credit phases out at around 30 thousand dollars for all the single taxpayers and for married couples (that file jointly) it amounts to around 61 thousand dollars. It’s just over 45 thousand dollars for the head of the households. It’s worth mentioning that the person needs to be at least 18. In order to claim the credit you would have to fill the form 8880.
The treasury department insists that the contributions can be made through a bank account, via an employer or by navigating all or some of their tax refund to the myRA account.
A retirement proposal based on TSP has arrived
Retirement plans have been with us since the beginning of time and they are always things that federal servants have in their minds when they are near their retirement age. Recently a new retirement proposal has come forth which has been modelled around the TSP and is available to be enjoyed by the federal employees of the state. This will be an additional option along with the usual private sector 401(k) plans; the Washington organization announced.
A TSP modeled retirement proposal:
CAPAF or the Centre for American Progress Action fund was the group that detailed this past week the idea to create a plan that goes by the name National Savings plan. This can be used specially by those that don’t have an accessible retirement account that they are currently a part of. This plan is starkly similar to TSP as it makes the retirement level adjustments according to the person’s distance from their retirement. IT’s worth mentioning here that the Thrift Savings Plan has around 4.7 million participants.
The people responsible for the spawning of this new proposal have something big and beautiful in mind. They want to aid those workers that are beyond the boundaries of the federal government and don’t have any plans in practice available at their workspace. David Madland, who is a senior follow at the action fund of CAP believes that TSP is a very simple and good way to prepare for your post-retirement life and that has been their main motivation of conceiving this new plan.
While the plan is still in the “proposal” phase, we hope and expect that the road that lies ahead for it is paved by success as it only means to bring good to the community. The approval phase is probably going to take a little longer than expected but we can all keep our fingers crossed for now.
Disability Retirement Myths
It’s instilled in the human nature (some experts believe) to take some facilities for granted, something that disabled persons know all too well. For instance, we take our health for granted and suppose that if are healthy and don’t carry any disease, it’s because that’s how life normally is. When however we spend some time on the hospital bed yawing with pain and failing to drink a glass of water all by ourselves, we realize that health is something of fascinating importance.
For the federal employees, there are certain sources of getting health related insurance money. The FERS disability retirement is something that comes to mind when you put the keywords of “health” and “federal government” together. There are certain myths about the program though that we thought needed some clearance. Here are those myths:
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Your medical condition must be work-induced to get disability retirement:
This is probably the biggest misconception present in the minds of many employees. The disability that you might have encountered must have been because of your work; and this is not only inclusive of injuries but rather other stress related conditions like depression, cancer or diabetes can also be considered eligible. ‘
2. You don’t need to be qualified for the SS disability:
You need to also apply for the social security disability while applying for the federal one. This is often considered unimportant because you don’t even need to get approved.
- You can still be working:
This is a myth that is also often present. You don’t need to actually have stopped working to be eligible.
3.You don’t need to be completely disabled:
The last myth that is present in the federal minds is that a successful recipient needs to be completely disabled. However this is definitely not the case; even if you are able to walk and talk normally, you are still eligible if you have some other injury.
Federal Employee Retirement Savings Tips
We all strive to make more money and the start of a new year can represent good place to start. For federal employees, there are a lot of different strategies for boosting federal employee retirement savings and something that we need to put at the top of our list of things to do. If you are also trying to double up on your savings, then read on as we have some interesting tips for you:
Increasing Federal Employee Retirement Savings:
- Set goals: The first thing that you need to do is to set up your monthly goals. The biggest mistake people make is setting up goals for the whole year which (because of the longevity constraints) they fail to achieve. Try to set up as vivid monthly goals as you can.
- Set default saving options: Always make the default decision when it comes to making additions to your savings accounts. You can just choose to make 401 (k) deductions from your pay check right away and that should be the ideal practice.
- Defer your saving boost: IF you are not capable of bearing a smaller check in the start of the year, don’t just put it off completely. Defer it till later in the year and do it eventually.
- Your future you needs the present you: You will love yourself dearly if in the future you end up having enough money to live a dandy life. So think about your future and make decisions accordingly.
- Keep it increasing: Throughout the year, try to increase the rate at which you put money in to your account and you will be good to go. A small percentage in January and a large one in October can do the trick.
Retiring in 2016; These Tax Traps Are To Be Avoided
2016 promises to be a year during which state and federal income taxes are not going to stay constant. If you are planning to retire during this year, then there are some tax traps for you to avoid. If you plan well enough then you can easily avoid them. All the three retirement income sources can cause you troubles in this regard. Let’s take a look at each of the three:
Tax traps to avoid:
When you are filling the forms for your retirement application, you will get your hands on a W4-P among all the paperwork. You need to stay calm, put in the withholding level that you want to and you are good to go. If you are liable to get the FERS pension and are retiring before 62, your W4-P will also encompass the payments that the Special Retirement supplement guarantees for employees.
Once again, things are not that difficult to implement. Your SS will not keep any federal income taxes away from your benefits unless you make the explicit request. IF you miss this request making, then you will end up losing a lot of money. This is pertaining to the fact that most of the federal retired officials have to pay income tax on almost 85 percent of their SS retirement benefits. So whenever you apply, make sure you have a W4-V form with you and fill it to make your benefits impervious to tax.
It gets a little tricky here. TSP extracts taxes depending on your withdrawal habits. The TSP will not tax your money unless you withdraw more than 1500 dollars per month though. Otherwise you are going to have to pay serious amount of tax withholding money.
What if a pension plan fails? How much do you get
Pension plans
Pension plans have really been a big source of solace for all the employees after retirement and one wonders that it can’t get worse if a pension plan ends up failing. However, if your pension plan doesn’t succeed, you might still be able to get your retirement payments. Most of the conventional pension plans of the private sector undergo insurance by the pension benefit guaranty corporation which will be responsible for granting the employees with benefits up to certain limits even if the plan reaches an end.
You will get payments even if your pension plan fails!
A retiree around the age of 65 who might terminate his career in 2016 could still end up receiving staggering amounts of annuity; as much as 60 thousand dollars. This of course is dependent on your pension plan and on the age when you actually start getting PBGC payments. You will not be able to get the maximum benefit if you claim your payments before you reach 65. You will get up to 2.25 thousand dollars per month if you begin taking payments at 55 and will get around 1.25 if you start getting payments at the age of 45.
If your insured benefit is almostPension plans have really been a big source of solace for all the employees after retirement and one wonders that it can’t get worse if a pension plan ends up failing. However, if your pension plan doesn’t succeed, you might still be able to get your retirement payments. Most of the conventional pension plans of the private sector undergo insurance by the pension benefit guaranty corporation which will be responsible for granting the employees with benefits up to certain limits even if the plan reaches an end.
You will get payments even if your pension plan fails!
A retiree around the age of 65 who might terminate his career in 2016 could still end up receiving staggering amounts of annuity; as much as 60 thousand dollars. This of course is dependent on your pension plan and on the age when you actually start getting PBGC payments. You will not be able to get the maximum benefit if you claim your payments before you reach 65. You will get up to 2.25 thousand dollars per month if you begin taking payments at 55 and will get around 1.25 if you start getting payments at the age of 45.
If your insured benefit is almost equal (or completely equivalent) to the pension that you have accumulated up till now, then you will always go on receiving all of your pension payments, as promised. If however you get a pension that is more than the guarantee figure of the PBGC, then you will see a reduction in your monthly instalments. Having said that, the PGBC claims to provide most of the people with the full amount.
All in all, there is a possibility of a failure in pension plans but with this knowledge, the tension that is always lurking around the head of a retiree might go away.
equal (or completely equivalent) to the pension that you have accumulated up till now, then you will always go on receiving all of your pension payments, as promised. If however you get a pension that is more than the guarantee figure of the PBGC, then you will see a reduction in your monthly instalments. Having said that, the PGBC claims to provide most of the people with the full amount.
All in all, there is a possibility of a failure in pension plans but with this knowledge, the tension that is always lurking around the head of a retiree might go away.
New Public Sector Retirement Savings Plan Approved by Senate
The budget committee of the Senate has finally given its approval to the bill that is destined to create a long lasting retirement savings plan for the workers that are employed in the private sector. This will ideally be applicable to those workplaces where there are no employer-sponsored plans in New Jersey.
A new retirement savings plan:
The bill would make it a requirement for all those companies that have around 25 companies to offer a retirement plan known as the “Secure choice” if of-course they don’t already have a plan. Apart from this, if you are a smaller company and want to avail this opportunity then you are also more than welcome.
The bill was cleared by the Senate Appropriations and budget committee recently with a vote distribution of 9-3-1.
This bill has some similarities with the already available retirement savings plans. Just as in a 401(k) employers would be required to set up a deduction on the pay check of all the employees. This deduction would amount to 3 percent of the income and would go directly in to the retirement fund accounts.
The need of this plan was eminent in the state for quite some time now. There are around 1.7 million people only in the state of New Jersey who don’t have an employer-sponsored retirement plan available and according to researchers, around 31 percent of the federal employees have not got a retirement account set up either. This program is set to be put into practice within around 2 years and is expected to transform the way retirement plans are dealt with in the country. When people of a country are naïve because they are not prudent enough then it becomes the responsibility of the government to provide them with the insight to think in a broader way and this is a great step taken by the Senate in this regard.
The Results Are In! Government Has Failed To Properly Train Federal Employees
The results are in! Less than 20% of Federal Employees are satisfied with the retirement training they have received. -75% report receiving no training at all.
Nearly 1 Million Federal Employees were asked to participate in the 2015 Year-End Retirement Survey conducted by PSRetirement.com. After tabulating the responses, and apart from the surprising number of Federal Employees that were left unsatisfied with their training, there were also a few other interesting insights into the retirement training that the Federal Employees are currently receiving.
¾ of Federal Employees Surveyed Report Receiving ZERO Retirement Training
According to PSRetirement.com’s 2015 Retirement survey over 75% of Federal Employee respondents have not had any retirement training at all. Of the Federal Employees surveyed less than 20% of those stating they have received training also state that they are satisfied with the training they received
Federal Employees Prefer One-On-One Retirement Training
Responding to the type of benefit training these Federal Employees would prefer:
- 42.5% of Federal Employees selected one-on-one training as their preferred method
- 29% of Federal Employees chose group training;
- A surprisingly large number of Federal Employees (28.5%) specifically requested interactive online training, which is something that is predominantly unavailable.
One thing is certain Federal Employees believe that their employer should be doing a better job of training employees on their retirement benefits. We happen to agree.
(Advertisement)Looking to start your savings or retirement accounts?
A recent study that was conducted by the ORC international and the Federal Credit Union of the Navy revealed that the military youngsters are incredibly and remarkably more inclined towards taking up the savings and/or the retirement funds than the youngsters from the general population. Saving money is something everybody wants to do but not many are able to do it because it’s definitely easier said than done. Everybody is aware of the importance but not many are able to get started without facing challenges. For those who have just joined the military or have been there for some time now, there are enough retirement accounts opening facilities for them to be able to be satisfied:
An emergency fund is one of the best avenues to take upon in this regard. Emergencies can never really be avoided because of their sudden transpiring nature. What we can do however is to be prepared once we are faced with any predicament. For people that can have retirement accounts or savings’ ones for that matter, an emergency fund can go a long way. You can just get it opened without any hassle and don’t touch it unless you absolutely have to. Make small additions to it every month and you should be able to have money when your car needs a sudden repair or any other such out of the blue emergence of something.
The best way to make your retirement accounts filled with money all the time is to take small steps. Don’t try to be extravagant and put all of your month’s salary in there. Another thing to remember in this regard is to start as early as you can. Often officers start late in their service tenure and when they reach their retirement they don’t have much in their accounts to look forward to. There are many avenues to take upon like the IRAs, 403(b)s and the 401(k)s etc. in this regard.
Details about the new military retirement system
Soon we will be hearing from the Defense Department regarding the new military retirement system that’s set to be put in to effect from January the 1st of 2018. There are some intricate details regarding the system that are to be shared and everybody is looking forward to hearing something that they would like to hear.
Details about the new military retirement system:
During 2016, the armed personnel can expect the implementation of the financial education programs that are going to be spread across the whole force and will allow the service members that are eligible to get help regarding making decisions of selecting retirement packages. They can either get enrolled in a new retirement plan or just go with the rudimentary benefit that is given under the grandfather clause. Even though, as mentioned the plan will not be put in to practice before 2018, all the already in service troopers will be offered the traditional grandfather clause that is part of the basic 20 year retirement system.
If you entered the troops after January 1st 2006, then you will have the liberty to choose between the 401 (k) system and the offered one. This would definitely create an ambience of uncertainty as 2018 approaches near for the people that are in the middle of their services.
The troopers who came before 2006 and have served for over 12 years, will be given the chance to opt for a waiver but because this ensures few financial fruits, not many would like to make the switch.
There have been cases where the Pentagon has forcefully asked some of the troops to take upon retirement plans but with the new military retirement system and its launch, it’s expected that things are going to get a lot more open to choice of the military.
Substantial Time Improvements Seen In Retirement Processing
OPM speeds up Retirement processing:
Retirement processing has always been a tedious task but since October there have been some good changes made. On average, it took 37 days to get a case approved during the month of November and it’s a stark improvement compared to the 60 days it took in the earlier months.
Office of Personnel management managed to receive around 6,019 claims and it managed to get around 6100 claims during the month and that’s a great update.
The agency also made some serious changes to retirement claims and have now added a lot of data about the time it might take federal officers to get their retirement benefits. Retirement processing is now expected to take lesser time and this will also be indicated in the reports that are going to be presented to the retirees.
Advancements like these always fail to catch substantial media attention whereas critics are always ready to take the toll on OPM whenever something bad occurs. It’s only fair to appreciate when some good quality work is done too.
Some Teamsters Fuming Over Retirement Funding Usage
A recent town hall meeting that took place in the major gathering hall of Toledo led to the inception or probably the disclosure of a political controversy and this has garnered some fame and attention from the critics and also the general population. What became news/knowledge for some of the teamsters (retired and current) was that their retirement funding that come from the union have been wrongly made use of by some of the interest bodies in their urge to make deductions to the pension plans of these teamsters. A staggering amount of around 6 million was being wrongly snatched away from the union funds and what was the motive behind it? To try to incline the law formulating personnel to make cuts to the pension and social security plans. A trustee from the Central Pension Fund plan, Bill Litchenwald was given the duty to address the fuming trustees in this regard:
Trustees fuming over retirement funding usage:
There were allegations and loads of them being made by Bill in this regard. “Allegations” is a keyword in the preceding sentence because there was no credibility in the way he uttered his words. A worth mentioning point is that Bill is himself allegedly involved in this misappropriation of funds. This was the reason why the crowd was upon him as soon as he came centre stage. Bill tried to apologize and tell sad things to the crowd assuming a defensive role but that card too was turned down.
Almost all the teamsters that were part of the event will now have to face around 50 percent decrease in their retirement funding schemes and rates. Bill put the whole weight of the situation on the Congress saying that it is going to be their word that is going to be taken in this regard and there is nothing he could do about it. His blame game further continued when he said that the federal government is not supporting the state and the funding schemes in any way.
This issue is unlikely to see an end soon and here’s hoping that whatever ends up transpiring is better for the majority.
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Robert Egan’s retirement announced
Robert Egan has always been a highlight of the excellence of the Federal-Mogul Motor parts; which is a division of the major Federal Mogul Holdings Corporation. The company’s motor parts’ division’s board of members have recently asked Robert, who was the senior VP of the company in the sales and strategy division to retire. Robert managed the division for the whole of North America and he had joined the company in 1979 as a junior executive. He went on to take all sorts of high positions by receiving promotions pertaining to his excellent calibre and performance. He was a part of the journey of the company throughout and saw them become a respectable supplier that they are today. He is all set to retire on December 31st.
Robert Egan retires:
The CEO Dan Ninivaggi had nothing but praise for the soon to be retiring Robert. He said that Bob has always been the man to ask whenever there is something that needs attention. He said that he has played a pivotal rule in transforming the company from a small enterprise in to the giant that it is today. Dan further added that there are hardly better people that can understand customer satisfaction, retention and relationships like Robert and that his strategy building insight is something that he will miss for the years that lie ahead. Apart from this, he also was always there to guide the repairing professionals and our end customers. He concluded by saying that he is ever grateful to Bob and feels proud that he got the chance to work alongside him.
Robert Egan, started off his career with Chrysler Corporation where he worked 12 years in the sale management division before joining Federal-Mogul. He has been a chairman of the board of the Auto Care Association as well and there are many other feathers in his cap as well. Here’s hoping that he lives a prosperous life ahead as well.
A Non Existent Retirement Wave
There have always been some warnings that have been made regarding a federal retirement wave in the country since the very beginning. This is the process which involves a large amount of people that were born during the two decades between 1940 and 1960. As a part of this phenomenon, all these people will approach retirement eligibility within a very small tenure and will be taking a really substantial amount of institutional information out with them too.
Is the retirement wave of harm?
This idea has made the government think a lot and there have been hundreds of personnel policies and laws that have been designed to meet this retirement wave when it takes place. This also led the government to take initiatives that are going to force (or entice) employees to stay on their office tables and not just call it a quits. Surprisingly though, this all-anticipated wave is just passing by quietly and not causing any expected disruption.
This has been made possible by excellent efforts made by the office of personnel management. The latest data revealed by the organization depicts that there were over 68 thousand retirements made during the year 2014 (that reached an end last September). This meant that there was a rise of around 3 thousand from the fiscal year 2013 but a little bit below the level of 2012 by around 600.
This increase in retirements during the last four years represents the declined decisions made by officers that could have retired earlier but didn’t because of the 2008 economic downturn. The numbers are going to keep rising and it’s expected that there might be some issues that would be need to get dealt with in the years to come. Here’s hoping that things turn out the way we expect them to and this feared wave passes by without causing much disruption.
Expert Advice On How To Save For Retirement
The state of Illinois is working on announcing a state based retirement plan that is going to hit the scene by June 2017. The federal government recently had something to say about these plans in order to keep them abiding the federal laws and there were some rules added.
Make Sure You Save For Retirement
There has been massive emphasis laid by financial experts over the years on the fact that even though the retirement comes closer and closer for the federal employees, they fail to make a decision and are unable to add the funds that they would ideally want to. They have to say that many people mess up by putting too much importance on what they want above what they actually need and this is where financial chaos can occur. However it’s said that you can never really be late to do the right thing and if you still have time, go ahead and get it done.
There are some quality tips to benefit in this regard. Find them below:
- Don’t save much if you can’t but save enough. Adding funds to your retirement plans isn’t necessary but it’s something that needs to be done for the greater good. You might have to stop eating pizza during the weekend from the coming week but you will love this decision later on in life.
- You don’t know how life is going to be 20 years from now. Save in multiple funds that are dedicated for specific situations. Add to your medical fund and even add to your life time safety funds.
- Stay up to date. Never forget that you have an account open because unresponsive retirement plan accounts often end up getting closed and you wouldn’t want that.
All in all, as a federal officer you need to stop putting your money where the mouth is and start putting it in the retirement fund piggy bank. Don’t forget to save for retirement!
