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July 6, 2022

Federal Employee Retirement and Benefits News

Category: Articles

Articles

All the latest articles covering the information that you will be craving to devour will be available via this category. From getting to know how indebted our company is to reading about the presidential elections; from knowing about new retirement plans to finding out how security breaches can affect your life; you can browse it all!

For more articles, visit our articles’ section.

Public Sector Retirement, LLC (‘PSR,’ ‘PSRetirement.com’ or the ‘Site’) is a news channel focusing on federal and postal retirement information.  Although PSR publishes information believed to be accurate and from authors that have proclaimed themselves as experts in their given field of endeavor but PSR cannot guarantee the accuracy of any such information not can PSR independently verify such professional claims for accuracy.  Expressly, PSR disclaims any liability for any inaccuracies written by authors on the Site, makes no claims to the validity of such information.  By reading any information provided by June Kirby or other Authors you acknowledge that you have read and agree to be bound by the Terms of Use

Lawmakers Attempt to Increase Retirement Age in an Effort to Save Social Security & Medicaid

Recently, lawmakers have struggled in vain to ensure Social Security assurance for our senior citizens. The current financial stability of the Social Security program poses serious threats to Medicare, tax caps, and the modern retirement age, as lawmakers explore several solutions. With statistics showing Americans currently live longer, it enforces advocates to insist on increasing the age citizens are eligible to take advantage of Social Security benefits. Does an increase in the tax cap or retirement age make sense to aging senior citizens, and what are the future implications?

Depleted Concern or Depleted Funding?

While the statistical data implies modern-day Americans live longer than ever before, lawmakers are currently considering a retirement age increase from 65 to 69 by 2030 if they ultimately fail to raise it to 75 by the year 2032. Ultimately, the goal of multiple senators in favor of the proposal is to claim this is the best solution to getting a grip on our nation’s climbing debt crisis. This concept involves adjusting retirees’ long-term benefits rather than raising revenue through taxation.

Other lawmakers favor an increase in the income subject to Social Security and Medicaid taxes, claiming it is a fair solution for higher earners. Currently, the tax cap sits at $147,000, which may face either total elimination or significant increases should Social Security and Medicaid suddenly become insolvent. At our current rate, experts expect Social Security to be entirely depleted by 2034. However, with the increased number of senior citizens and improved life expectancy, it’s concerning to wonder whether Social Security could disappear altogether.

Could Social Security Disappear Entirely?

As Americans continue to reach retirement age or linger a few years behind it, many are left to wonder whether Social Security can go bankrupt or disappear entirely. If Social Security had failed to exist at all, nearly half of all elderly would live in a state of poverty. Currently, roughly 10% of America’s aging citizens live in poverty. But, thus far, the government-funded program has provided a steady source of income for aging, retired workers to rely on from month to month. Protecting this program could mean the difference between taking care of or leaving them to live in unacceptable living conditions.

Unfortunately, the demographic changes have put Social Security in a tough spot, falling short by nearly $17 trillion. Some experts blame baby boomers for leaving the workforce in droves, and as they retire, they are also living longer and consuming more Social Security funds than ever before. As time marches on, our society is witnessing record-low birth rates, which threatens the worker-to-beneficiary ratio the program relies on so heavily. If lawmakers halt efforts to increase the retirement age or tax cap, Social Security could face insolvency.

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

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.

Don’t Be Deceived When Working On Your Federal Benefits

Employees of the Department of the Navy and the United States Postal Service in Western Washington have been sent a warning that federal retirement counselors don’t conduct house calls. Someone who claims to be a Federal Employee Retirement Specialist (FERS) from the Government Retirement Benefits Platform (GRB) and they come to your home and assist you in filling out your retirement paperwork is not acting on behalf of the federal government. Instead, they are acting as independent contractors. They are there to make a sale to you on insurance or investments.

There are no home visits from the GRB’s benefits counselors in Maine. However, there are home visits from the Office of Civilian Human Resources in Portsmouth, Virginia, which processes the retirement applications of federal employees retiring from the Department of the Navy and the Post Office in this area of the country, but remember that they do not make house calls.

If you require assistance, you should contact the personnel support specialist assigned to your shop or code, or you may call the GRB toll-free phone number 1-888-320-2917 and follow the procedures to talk with a benefits expert. Further resources include the Federal Employee Group Life Insurance (FEGLI) website (www.opm.gov), the Thrift Savings Program (TSP) website (www.tsp.gov), and the Social Security Administration (SSA) website (www.ssa.gov)

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

Bio:
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.

Yes, You Can Lose Your Social Security Payments; Here’s How.

As they prepare to retire, millions of individuals rely on their Social Security income. However, be wary of these four unanticipated methods that can affect your benefits.

1. State and local taxes

You may be required to pay state income taxes during retirement. Your Social Security benefits may be deemed income and subject to state taxes in some instances.

Only 12 states tax Social Security benefits, including:

  • Colorado
  • Connecticut
  • Kanas
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Mexico
  • Rhode Island
  • Utah
  • Vermont
  • West Virginia

Your benefit will not be taxed in the other 38 states.

2. Federal income taxes

You may be required to pay federal taxes on your benefits if you have other considerable income in addition to your benefits. Your total income is computed by adding your wages/self-employment income, dividends, interest, and other taxable income. The amount of federal taxes you must pay on the benefit is determined by your total income.

3. Debts that have not been paid

The US Treasury can “garnish” your Social Security payments for certain unpaid debts, such as back taxes, spousal or child support, or a defaulted federal school loan.

They don’t need a court order to have your benefits garnished if you owe the IRS money. If you owe federal taxes, you may lose up to 15% of your Social Security payout to cover your debt.

4. Excessive Income

For many people, retirement means relying on Social Security as their primary source of income. You can, however, continue to work while claiming your benefits.

Keep in mind that if you choose this option, your benefits may be reduced by up to $1 for every $3 you earn. When you file your Social Security claim and reach full retirement age (FRA), you will determine how much you get and how much you lose.

Contact Information:
Email: [email protected]
Phone: 2178542386

Bio:
Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.

Bullet points:
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
Federal Government
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.

The Positive and Negative Aspects of Working In Retirement

According to a Natixis Investment Managers survey from 2021, 42% of retirement savers fear they won’t be able to retire. The group behind that percentage, in particular, includes retirees with $100,000 to $450,000 in investable assets – individuals who have already started building their nest eggs.

Working longer is the common-sense option for underfunded retirement savers. If you imagine retirement as a series of leisurely days filled with interests and personal time, the prospect of returning to work may be unappealing. There are unquestionably disadvantages to working in retirement, but there are also benefits.

By examining both sides as objectively as possible, you can develop the best plan for your senior years. Begin by going over this list of three benefits and two drawbacks to working in retirement.

Pros

Pro 1: The income increases the longevity of your retirement savings.

Your reliance on retirement withdrawals will be reduced due to your working income when you work. You’d continue to meet your living expenses with your wages and invest your savings in an ideal world. The longer you invest, the higher your growth potential.

Pro 2: You’re less likely to become bored.

TD Ameritrade polled 2,000 people aged 40 to 79 in 2019 to find out what might encourage them to return to work after retirement. 60% of those who have not yet retired stated they would return to work due to boredom. By the way, boredom is a reason cited by 67% of those returning to work.

Pro 3: You Could Be Eligible for a Higher Social Security Payout.

When you delay claiming Social Security, you give up immediate income in exchange for a larger monthly amount later. So, if you work in retirement while delaying Social Security, you should get more money.

This benefit increase is granted after reaching full retirement age (FRA), and it’s based on your earnings history. Your FRA is the age at which you are eligible for full benefits. Your FRA would be between 66 and 67 if you were born after 1942. Please create an account at My Social Security to find yours.

If you apply for Social Security benefits before FRA, your total payout will be cut by around 30%. If you file your claim after the FRA, your benefit will be increased by up to 32%.

Now that you know the pros, here are some cons of early working in retirement.

Cons

Con 1: Your Social Security payment may be reduced (temporarily).

You are subject to income limits if you retire and collect Social Security before your FRA. The Social Security Administration (SSA) will cut your federal retirement payments if your income exceeds certain limits.

The impact of these on your Social Security benefits could be substantial.

For example, if an individual is working in retirement and their income exceeds $19,560, the SSA will deduct $1 from their Social Security benefits for every $2 they earn above that amount.

This will continue until the year you reach FRA, at which point the threshold will increase. In 2022, the income threshold for the year you attain FRA is $51,960. Your benefit will be reduced by $1 for every $3 you earn above $51,960.

Con 2: You won’t have as much time for other activities.

Perhaps the most significant disadvantage of prolonging your career is the time commitment it entails. When you work, you can’t go to see your family or do what you want to do.

With part-time employment, you might be able to enhance your work-life balance. Another choice is a compensated opportunity that integrates a pastime or involves a cause that is important to you.

Working in retirement has its advantages and disadvantages.

Working in retirement may not be the best option, especially if you don’t enjoy your current position. However, it’s difficult to dismiss the financial advantages. Your savings account can keep growing.

You will also get more money from the government if you delay taking Social Security.

On the other hand, continuing to work may be counterproductive if you file for Social Security early. Moreover, If you earn more above a specific limit, your Social Security payout may be reduced.

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

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.

Six Reasons Why You Won’t Receive Social Security

Many Americans look forward to receiving Social Security payments at the end of a long career. The Social Security Administration (SSA) says that while you can start receiving benefits at age 62, you get a larger benefit each year you wait to get them until age 70. But this assumes you’ve earned enough credits to qualify.

It’ll be best to know ahead of time if these benefits aren’t available to you so you can create alternative retirement arrangements. In some instances, a worker may not have earned Social Security.

Let’s look at six reasons why you may miss out.

Insufficient S.S.I. Credits

According to the American Association of Retired People (AARP), you must work to earn “credits” that allow you to qualify for Social Security payments.

In 2021, you received one credit for every $1,470 you earned in salary or self-employment. The Social Security Administration (SSA) says you may only receive four credits each year. To qualify for any Social Security payment, a person requires 40 credits. Don’t expect to be eligible for these perks if you haven’t earned all 40 credits.

You’re One of These Types of Government Employees

While the government usually looks after its employees, there are several exceptions for employees who don’t get Social Security benefits at the state, county, or municipal levels. Instead, these employees contribute to and get benefits through state-funded pension programs. These include:

• U.S. government employees hired before 1984 receive pensions under the old Civil Service Retirement System (CSRS)

• Railroad employees, whose pension system dates back to the 1930s 

• Foreign nationals working in the U. S. for their home governments, such as ambassadors or workers for the United Nations or other international organizations

• Most safety personnel/first responders, such as police and firefighters

• Many K-12 teachers

If You Owed Self-Employment Taxes

Many self-employed company owners are unaware that they must now pay into Social Security twice: as an individual and a corporation. You must pay this tax with your federal return. If you don’t file at all or file incorrectly, you may not have enough Social Security credits to retire. Moreover, if you continually don’t pay these taxes, you could get into legal trouble.

Some Divorcees

If you’re divorced and don’t have enough credits to qualify for Social Security on your own, don’t plan on obtaining half of your ex’s benefits. You must be unmarried, 62 or older, and have earned less than your ex-spouse. According to Investopedia, you cannot collect your spouse’s benefits if you are married for less than ten years.

If You Retire in Certain Foreign Countries

If you retire outside of the U.S., DC, Puerto Rico, US Virgin Islands, Guam, Northern Mariana Islands, or American Samoa, you may not qualify for Social Security benefits. Azerbaijan, Belarus, Cuba, Kazakhstan, Kyrgyzstan, Moldova, North Korea, Tajikistan, Turkmenistan, and Uzbekistan are exempt from U.S. contributions. There may be exceptions, but you must use the Social Security Administration’s “Payments Abroad Screening Tool” to evaluate your eligibility.

Certain Immigrants

Immigrants who arrive later in life and have not accrued the 40 labor credits required to qualify for Social Security will be denied these benefits. The solution is to obtain six work credits in the U.S., which entitles the worker to prorated U.S. benefits. A “totalization agreement” combines this with prorated benefits from their former country.

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.

Federal Employee Group Life Insurance Overview

Any first-time government employees are automatically enrolled in the Federal Employees Group Life Insurance (FEGLI) program. Unless you opted to decline such coverage by the end of your first pay period, you would be the recipient of one of two types of FEGLI coverage. Basic FEGLI coverage provides group term life insurance without a medical exam and includes accidental death and dismemberment (AD&D). However, the premium cost for this package is shared between you and the federal government, except in union negotiations. For example, the Post Office covers 100% of the basic insurance costs for their current employees.

The beneficiary amount of the basic life insurance equals your current yearly take-home pay, rounded up to the next $1,000, plus another $2,000. Every time your basic pay changes, this amount is subject to change. If you were to die or lose one or more body parts (including hand, eye, foot, etc.), you would receive either half or the entire amount. The second type of insurance under FEGLI is an optional coverage, available in three styles. First, you must be enrolled in Basic to register in the following sub-categories. Additionally, you must pay the total cost, with a flat rate offered up to age 35. These include Option A standard, Option B additional, and Option C for families.

Designating a beneficiary is a must when it comes to life insurance. The beneficiary is the individual you chose to receive death benefits upon your death. A standard order of precedence has been put into place if a beneficiary was not designated. Designating a specific individual ensures life insurance proceeds go to the right person. When one hasn’t been designated, the order of precedence is as follows: spouse, child, children (in equal shares), parents, next of kin (under law). If you are unsure of your current beneficiary, you may visit the servicing personnel office and check your Official Personnel File (OPF).

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/

What You Need to Know About the Federal Retirement Systems

Do you work for the federal government as a civilian? If that’s the case, depending on when you started working, you’ll be eligible for one of two federal retirement systems:

• Federal Employees Retirement System (FERS)

• Civil Service Retirement System (CSRS)

If you started working after January 1, 1987, you are certainly a member of the Federal Employees Retirement System (FERS). If not, you will qualify for the Civil Service Retirement System (CSRS).

What is the Federal Employees Retirement System (FERS)?

FERS is a retirement plan for federal civilian workers, including those in the executive, judicial, and legislative government departments. However, it does not apply to military members or workers of municipal and state governments.

If FERS insures you, you will be eligible for three types of benefits:

Basic Benefit Plan: This plan lets you and your employer put a percentage of your paycheck into it. After retirement, you will earn a monthly pension if you do so. Resultantly, the Basic Benefit Plan is often known as the monthly annuity.

Social SecurityYou must contribute 6.2% of your salary to Social Security, which the government matches.

Thrift Savings Plan (TSP): A Thrift Savings Plan (TSP) allows you to save and invest for your retirement. It is similar to a 401(k) plan in that it provides government workers with the same types of savings and tax advantages. A regular TSP allows you to make tax-deferred contributions. Hence, you will have to pay taxes when withdrawing money in retirement.

You may also contribute to a Roth TSP if you don’t have a 401(k) plan. You will contribute to the plan from your after-tax earnings. As a result, you will not have to pay any taxes while you are retired.

You can invest your TSP in the following funds:

• Common Stock Index Investment Fund

• Fixed Income Index Investment Fund

• Government Securities Investment Fund

• International Stock Index Investment Fund

If you quit your Federal government employment before retiring, keep in mind that you may take your Social Security and FERS TSP with you to your future job.

What is the Civil Service Retirement System (CSRS)?

In 1920, the Civil Service Retirement System (CSRS) was established as a defined benefit, contributing retirement system. Until 1984, when the Federal Employees Retirement System (FERS) took effect, it was the sole retirement system accessible to federal employees.

Most workers contribute roughly 7% of their base wage, and their employers match it. You must have worked for the federal government for at least five years to be eligible for the CSRS. You must also work in a CSRS coverage job for at least one of the past two years before retiring.

Your retirement benefits can be computed by taking your average highest 36 months’ salary from the last 120 months of employment and multiplying it by 1.5%. You will also receive a federal annuity based on five years of service credit.

You may choose to do a Voluntary Contributions Program to contribute 10% of your base pay into a CSRS subaccount.

If you are not eligible for CSRS, you may still participate in the FERS program if hired after 1987. You will have to choose between the two programs when making your payroll deductions. If you opt to join the FERS plan, it is possible for you also to fund a TSP account.

If you are unsure which retirement plan is right for you, visit the official Retirement System website.

Under the CSRS, you are eligible for an immediate retirement benefit if you fulfill one of the following criteria:

Optional benefits, such as a disability pension or a deferred annuity, will only be available to those who have fulfilled the five years of service requirement.

To become eligible for benefits under CSRS, you must be able to provide your employer with at least 31 days’ notice before leaving your government job. If you fail to do so, you will be barred from receiving any annuity.

You are also not allowed to receive your full CSRS annuity if you return to federal government employment before you turn 62.

If you have served for less than five years in the public sector or have contributed less than 5% in taxes, you may purchase up to three months of service credit for each year you have served.

Interest rates will determine the purchasing cost for this when your request was made. The average cost of buying three months’ worth of Service Credit is about 0.07% of the price of your annuity, or slightly more than $200 for each year covered.

If you are eligible to buy three months’ credit based on this formula, you can still purchase additional service credit if it is less expensive.

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.

There Are New Things Coming for the TSP

Federal employees should keep their eyes fixed on the Thrift Savings Plan (TSP) over the next year.

The agency in charge of the plan is in the middle of an extensive modernization project that will change the back-end technologies that run and protect the TSP.

These changes will add new features that will benefit TSP participants.

Employees and contractors involved in the project’s technical components call it “Converge.”

Participants will remember “Converge” as the project that eventually delivered them a new TSP mobile app, new security functions, a mutual fund window, and a few more things that most people are familiar with from online banking.

Many of these improvements have been in the works for years, especially the technical stuff on the backend. However, the Federal Retirement Thrift Investment Board (FRTIB) has stated that participant feedback is influencing the direction in which some of the new features are being implemented.

According to a recent study of TSP users, 57% of those under the age of 40 prefer a mobile app to access the TSP. 24% of those over 40 also agreed to this.

Participants will be able to log in to their accounts and connect with the TSP via their online accounts, email, and phone line. Starting next summer, they’ll also have access to a new TSP mobile app with a chat feature and an AI-powered virtual assistant.

The chat option will be administered by live TSP customer care professionals, who will be able to transfer participants to other people who can help with more specific inquiries or issues over the phone.

More online forms and electronic signatures will also be added to the TSP, making it easier for participants to manage their money and engage with the plan.

Participants will also be able to scan checks into the TSP using a digital scanner, similar to what most banks offer.

According to the TSP board, there’s also an impending mutual fund window opening somewhere in the summer. The plan’s five core elements will allow participants to access tens of thousands of dollars that would otherwise be unavailable.

The mutual fund window is currently being designed by the administrators. But according to Nohe, it will also have a search engine that will let people filter through the funds and look at their choices based on things that are important to them.

Participants with mutual fund window questions will be able to contact a dedicated contact center, which will be set up as part of the plan.

Once players join the window, there will be no trade limits, although some individual funds may have their own, according to Nohe.

Both participants and members of Congress are interested in the mutual fund window. The TSP will provide further details in the next few months.

Participants will see new security measures, as well as the mobile app and mutual fund window.

For example, participants may receive more prompts for a one-time password (OTP) to perform higher-risk online transactions. More fraud detection and prevention technologies will be added to the online experience as part of the strategy. Participants will also be able to access their TSP accounts using biometric data such as face recognition or fingerprints.

Participants will begin to see these changes this summer, according to the FRTIB. Meanwhile, the Thrift Savings Plan (TSP) will start engaging with its members soon to prepare them for the changes.

Yes, participants will be required to prepare actively.

The most important thing to remember is that participants will need to create new log-in credentials to access their online accounts. They’ll need to create a new login, password, and multi-factor authentication to access their accounts.

Those with several TSP accounts, such as a military or a civilian retirement account, will just need to create one new credential to gain access to all of them, according to Nohe.

Before the big launch, there will be a brief blackout period during which participants will be unable to access their accounts or carry out specific transactions for a limited time.

Once again, the TSP is still ironing out the details. However, keep an eye out for more information on the plan itself.

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.

TSP Policies Will Be Affected By This House-Approved Bill

With a bipartisan vote, the House of Representatives enacted a bill (HR-2954) that would change various retirement savings plans, including the Thrift Savings Plan (TSP) and other comparable programs. Among its many other provisions, the bill will:

  • Raise the age limit at which required minimum distributions (RMDs) must start from the current 72 to 73, then increase it to 74 beginning in 2028 and to 75 beginning in 2032.
  • Raise the catch-up contribution limit to $10,000 for those between the ages of 62 and 64. These are additional investments worth up to $6,500 this year that participants over 50 years of age can make in a calendar year, which will be in addition to the usual investment maximum in such plans ($20,500 this year).
  • To account for inflation, make the mechanism for increasing the standard investment limit and the catch-up limit more generous. 
  • Allow employees to get matching contributions to their retirement plans for the value of student loan payments they made instead of investing them into their accounts. 
  • Allow victims of domestic abuse to make penalty-free withdrawals of whichever is greater among the two: $10,000 or half the account value.

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/

Get Ready for Open Season

Federal Employee’s Health Benefits (FEHB) can change outside the open season due to qualifying life events.

The majority of Federal Employees Health Benefits (FEHB) enrollment changes during the open season, which occurs yearly. Even though most enrollment changes occur during the open season, some changes can also happen when you experience a “qualifying life event.”

Below are the qualifying life events that allow enrollment or its changes to the Federal Employees Health Benefits (FEHB).

If there is a change in your family status, you can enroll or change your enrollment from the benefits program. Examples of such family status include birth or child adoption, marriage, divorce, legal separation, and death of a spouse or relative.

Changing your current employment status is also a “qualifying life event” that can cause an enrollment change. If you are reemployed back into the workforce after a short break in service for more than 72 hours, your status will return to pay status when your coverage is terminated. Coverage termination occurs when you are on leave, have no pay status, or do not have a pay status for more than a year while you are on leave. 

Your premiums are withheld during your leave period because there is a sufficient increase in your pay. You will now be in a civilian position since you have served in the uniformed service. You can change from your temporary appointment to a new appointment that gives you access to a government contribution. You can move from or to part-time career employment.

You will terminate your membership in the employee organizations—the Federal Employees Health Benefits (FEHB) sponsors—when you change to self only in another health benefits program sponsored by the federal government. Changing to federally sponsored health benefits programs such as the state-sponsored program for the needy or Medicaid will terminate your membership in the Health Benefits program. 

If you cancel or terminate the covering enrollment, you or your close relative may lose the Federal Employees Health Benefits (FEHB) or coverage under the benefits enrollment. 

When any of these events happen, you can enroll, change your enrollment to or from self only, change to another employee health benefits plan, or even terminate your enrollment under the program. You must know that you can only change to Self Only in case of events that make you the last eligible close relative following the Federal Employees Health Benefits (FEHB) enrollment guide. You can only cancel your enrollment with a qualifying life event if you, the enrollee, show that you and your eligible close relatives now have another coverage for your health insurance.

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/

Fund Retirement Needs and Increase Your TSP Contributions

Which of us have attained, or have passed, our career’s “Bon Jovi moment”? What do Bon Jovi moments entail? It’s when you’ve made it midway. In Jon Bon Jovi’s famous track Livin’ on a Prayer, the band declares that the track’s themes (Tommy and Gina) were midway there. Where “there” is everybody’s assumption.

Assuming we take “there” as being a pleasant retirement and think either Gina or Tommy is a full-time government worker, midway there implies Gina or Tommy still has around fifteen years left in their government jobs. If they’ve been fiscally responsible, they are likely to have finished on student loans, have a home on which they are paying rent, and have laid contingency funds for their kids’ future. They put aside 5% of their TSP with these responsibilities to qualify for the state match. They’ve also been pushed to save through FERS contributions and Social Security.

Gina and Tommy have attained the stage where they have to ramp up their TSP payments. The TSP optional deferral sum for 2020 was USD 19,500, and it rose to USD 20,500 in 2021. USD 307,500 is the result of multiplying USD 20,500 by fifteen years. That’s before factoring in the state match or gains from their TSP fund. Also, it ignores the funds they’ve put in over the preceding fifteen years and the interest they’ve earned on it. 

How will they be able to finance their TSP with many of their existing obligations entirely? Below are some ideas:

• If they could get a better mortgage, they should remortgage their home. However, they cannot accept cash out of the account or change the loan duration.
• Let the kids understand the amount of school expenses their parents will cover and the amount that will be their own obligation. There is no requirement that parents pay for their kid’s education in full. They should also talk to their children about college options.
• If they cannot increase their TSP payments to the full instantly, they can devise a strategy for ramping up their retirement savings to get the highest amount as swiftly as possible.
• Recognize that they’re not quite “midway there” and anticipate working for a few more years if necessary.

According to tradition, a person’s life is divided into three key savings goals:

Purchasing a home, funding their kids’ education, and putting money down for retirement are all priorities. And the question has been posed: Which of the products mentioned above will a bank not lend you money for? You shouldn’t ever put your retirement on the back burner in favor of these, undoubtedly vital aspirations; else, you may discover yourself livin’ on a prayer after you retire.

You could use TSP tools to know where you stand today and where you might be in the year. https://www.tsp.gov/calculators is where you’ll find them. There are various calculators accessible, and “How Much Will My Savings Grow?” is the finest one for forecasting your potential bank account. This tool allows you to run various situations to evaluate how modifications in your savings account will affect the sum of money you have set aside for retirement.

Even though you’re midway there, you would not want to end up in your retirement years livin’ on a prayer.

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.

5 Common Federal Employees Retirement Regrets You Should Know Today

Have you ever asked how federal retirees are coping with lesser income after retirement? Most federal employees admit that they struggle financially after leaving their workforce because then they earn less compared to their working days.

Here is a list of the five common things retirees wish they had known before they retired. You should make the best use of this list while planning your retirement.

1. Use Roth TSP for your retirement savings

The major complaint from retirees relates to their retirement savings accounts. Most retirement savings accounts make your retirement assets taxable whenever you take distributions. Not saving in a Roth IRA should not affect your retirement, but no retiree regrets saving in Roth TSP and Roth IRA.

You will benefit more during retirement when you have access to several taxable buckets. The three major tax buckets include income tax-free, taxable, and tax-deferred bucket. You have more taxable income control when you have the three major tax brackets. If you retire with these buckets, you will also save more taxes for life.

Some retirees may not prefer Roth TSP, but having a tax-free income fund after retirement is incredible.

2. Talk with a financial expert. 

The fact that all kinds of financial information are available on the internet does not make all information suitable for use. Finding the most relevant information may be challenging if you don’t know about finance. However, you can easily develop your retirement plan and evaluate your retirement goals with financial advisor assistance.

Young federal workers don’t need asset management help, but the following financial advice may be helpful. The advice includes:

• How much TSP savings is enough for retirement?

• Should they use HSA or not?

• The right time to retire.

• Which TSP is best? Roth TSP or TSP?

• The best life insurance policy.

The advice can cover different aspects while answering other questions. You should talk with a financial expert soon if that is beneficial.

3. Save for retirement early

Building a greater nest egg for your retirement usually depend on your retirement savings. The earlier you start saving, the more money you will save. If you start saving when you are young, you have a higher chance of having more investment than those who start saving when close to retirement.

Federal employees retiring in a few months or years will like to maximize their TSP. Although this act is not bad, such money will have little growth due to the short interval between the saving period and retirement.

4. Leave the TSP

Some employees leave or change their Thrift Savings Plan (TSP) investment because they don’t want to take more risks. This decision is usually based on feelings, and they eventually move their funds from stocks into the G fund.

You need to understand how stocks work and their emotional influence if there is a market decline. However, most retirees with a higher TSP balance invest their funds in stocks without making any change. 

5. Abandon FEGLI

FEGLI start to increase as employees get older. Most federal employees are unaware that the FEGLI increases as they get older. Different FEGLI options have varying increase rates, but option B has the most worrying increase rate if it passes beyond 60. Because of this increase, seniors will want to get rid of this insurance.

If you are a federal employee with a good health record, getting your insurance policy earlier while starting your career will be best. With this, you can save a considerable sum of money over your career period.

Some federal retirees have regrets because they are unaware of these five common things they wish they had known earlier. Take your time to evaluate this list, and identify the changes you need to make to avoid such regrets.

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/

2022 FEHB Premiums Explained – Joe Carreno

In certain 2022 FEHB schemes, the Self Plus One alternative will be more expensive than what is obtainable with the Self and Family plan.

If you and your partner are enlisting for a 2022 Federal Employees Health Benefits (FEHB) package in the coming year, you might be shocked to hear that certain schemes in the FEHB plan offer a lower cost for the Family choice than the Self Plus One alternative.

The United States Office of Personnel Management (OPM) has produced a compilation of the FEHB package for 2022 with a greater entrant premiums share for the Self Plus One enlistment package than for the Self and Family enlistment. There are ninety-eight in total.

The FEHB package’s Self Plus One plan provides for the enlistee and one qualifying close relative up until the age of twenty-six, which could be a partner or kid. The Self and Family plan covers the enlistee and all the qualifying relatives.

Premiums for the Federal Employees Health Benefits (FEHB) Package in 2022

The percentage of FEHB package premiums remitted by federal retirees and workers will rise by 3.8% in 2022. In 2022, the national mean rise in FEHB package premiums would be 2.4%.

On the United States Office of Personnel Management (OPM) personal site, federal retirees and workers may check all current FEHB premiums and plans for 2022.

The open season for 2021 will take place from Monday, 8th November through Monday, 13th December 2021. Open season is a period for federal retirees and workers to check their vision, dental, and health insurance package for their families and themselves, and also render any necessary modifications to their insurance coverage.

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

Bio:
For over 30-years Flavio “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 claims‐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.

7 Categories of Workers Won’t Get Social Security, Will You? – Joe Carreno

People nearing retirement age need to ask if Social Security is accessible to everyone. The answer is no, although only a few American workers will not be eligible for Social Security. If you are a federal worker, who is ineligible for Social Security benefits, you need to do either of these two things:

• Find out the possibility of you being eligible for Social Security.

• Identify other income sources. 

Suppose you want to know your eligibility status for Social Security. Below are the seven common classes of workers who are neither eligible nor entitled to Social Security benefits.

1. Workers with fewer Social Security benefit credits 

Generally, you cannot get Social Security benefits if you don’t have any previous work history. This is because “doing enough work, which is equivalent to receiving 40 U.S. security credits,” is a criterion for collecting the benefits.

 In 2021, you will earn a credit for every income earnings of $1,470, and the maximum annual credit you can earn is four. Therefore, doing enough work means working for at least ten years. People working either part-time or full-time can earn the maximum yearly benefit.

Earned Social Security benefits remain for life and do not expire. So anyone who has earned credits less than 40 should consider working for more years by getting back to work. You may check your earned credits on the Social Security website by opening an account and downloading your balance.

2. Federal workers who die before reaching the federal retirement age (FRA)

The earliest time you can claim your retirement benefits is at age 62. If a worker dies before age 62, the spouse and dependent children may receive the survivor benefits. Widows and widowers may start to claim Social Security benefits at 60, while those with a disability may claim at 50, depending on the earning record of their dead spouse. 

Suppose you are not eligible for Social Security benefits; you should find more income sources if you want to maintain your financial stability in the future.

3. Divorced couples

Divorced people may collect benefit payments based on their ex-spouse’s earnings. Most of these people are parents without work. To access this benefit, they must be 62 years or older, single, and have lower benefits earnings than their previous spouse. Suppose the couple divorced before ten years of their marriage. In that case, they are not eligible for the spousal benefits.

4. American retirees in specific foreign countries 

Americans who reside in or travel to certain foreign countries may receive their Social Security benefits when they retire. However, the government won’t pay the benefits if that country is North Korea or Cuba. You can quickly check your benefits payment status while staying abroad using the “Payments Abroad Screening Tool” provided by the U.S. government.

5. Specific non-citizens

Specific non-citizens with enough work credits (40 credits) in the U.S. are eligible for the Social Security income benefits. Non-citizens without 40 credits can still receive the benefits if they are from the 30 countries in the totalization agreement, also called the”Social Security Agreement” with the United States. The combination of their work credits in the U.S. and abroad determines their eligibility for Social Security payments. However, immigrants without a minimum of six U.S. work credits are not eligible for Social Security.

6. Evaders of self-employment tax

If you are self-employed, you need to pay tax, covering your contributions to Social Security. You will pay this tax annually when filing your tax returns. However, you won’t pay taxes on Social Security if you don’t file your tax returns. If you haven’t paid into the Social Security system before, you will not receive Social Security payments. Moreover, you don’t have any right to benefits if you don’t report your income and have a lifetime history of evading taxes.

7. Specific Immigrants above 65

Retirees who travel to the U.S should not be eligible for Social Security because they don’t have the required work credits. However, if they are immigrants from countries in totalization agreement with the United States, they need to earn at least six U.S. work credits to receive the prorated benefits. 

Conclusion 

The majority of retirees in the U.S. will receive Social Security benefits when they retire if they have reached the full retirement age (FRA). Those without enough work history in the United States may not receive the benefits based on their personal work history. However, these people may receive spousal benefits if their spouse qualifies for benefit payouts. Some federal workers may not currently qualify for Social Security payments. Still, they can find a way to become eligible in the future.

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

Bio:
For over 30-years Flavio “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 claims‐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.

Will IRA’s Divesting From Fossil-Fuels Cost You? by, Aaron Steele

Should fossil-fuel firms be divested from retirement savings accounts and pensions? This technique is growing more common across the world. Pension schemes in Scandinavia have revealed divestments from fossil fuel companies in recent years. Moreover, the UK NEST retirement funds, a government-run IRA-resembling fund where employees renege if their companies don’t offer benefits, has revealed that it will also pull its resources out of the Arctic drilling, tar sand production, and coal mining.

In the US, a duo of lawmakers introduced a bill in 2020 to “decarbonize” the Thrift Savings Plan (TSP), a 401(k)-style scheme for federal workers. And several state pension schemes have revealed divestment schemes, the most notable of which is New York. Last December, I pointed out that the scheme did not comply with the region’s constitutional provision that pension investment funds should be focused exclusively on boosting fund remittance for pension attendees.

In the U. S., the Department of Labor decreed during the Donald Trump presidency that the fiducial obligation to augment investor returns disallowed such divestment activities in ERISA-managed retirement funds (i.e., 401(k) schemes for employers in private sectors). Although, they left a gap so that money managers might take climate change into account as a variable in deciding the process of maximizing returns.

At that moment, I expressed admiration for more employee choices, pointing out that there are many IRA services. These services range from those who take an environmentalist perspective to those who take a religious view, like the Catholic Ave Maria Mutual Funds scheme, and that combining 401(k) gains and IRA would give savers more options in their pension savings, allowing them to sacrifice some earnings in exchange for ethical investments. It takes me to the Department of Labor’s planned amendment from 14 October.

According to New York Times, the Department of Labor suggested new policies on Wednesday that make it very easy for retirement schemes to include investment choices predicated on social and environmental considerations — and allow for these options to be the standard option upon enlistment.

The Joe Biden regime’s plan clarifies that aside from retirement scheme admins being authorized to examine such considerations, it could be their obligation, especially if climatic changes’ economic repercussions persist.

“The new guidelines will also allow portfolios with environmentalist and other goals to be the standard investment choice in retirement schemes such as 401(k)s that was previously barred under the last administration’s standards.”

Notwithstanding this shift, according to The New York Times, fund managers will still be prohibited from sacrificing profits to prioritize environmental, social, and governance (ESG) concerns.

Despite this broad definition, other sites shed more light on the Biden government’s goals. According to the Financial Times, the Department of Labor suggested that retirement savings schemes may potentially be actively compelled to include climate change when making their investment.

“It keeps being seen whether the Department of Labor will go one step ahead in final provisions by requiring the attention of particular ESG elements, or if they’ll retain a neutral stance that they’re not distinct than other conventional investment requirements,” R. Sterling Perkinson, an associate at the legal firm Kilpatrick Townsend, told the (SHRM) Society for Human Resources Management.

Are there risks associated with ESG investment? Obviously, a large number of individuals are in favor of the move.

However, there are three areas we need to be concerned about:
To begin with, “ESG” isn’t a singular set of rules that applies to everyone. For instance, the organization Hong Kong Watch criticized the Western-style pension funds that profess to adopt the ideals of ESG-based investment of concentrating solely on environmental problems while casting aside “blind eye” human rights violations in China in the report that was issued at the start of the third quarter of 2021.

Furthermore, the haste to divest from non-renewable energy corporations might have unexpected repercussions. As per the IEA, oil exploration spending almost halved from 2015 to 2020, as published by Bloomberg in an editorial headlined “Shunning Fossil Fuels Too Soon May Prove Catastrophic.” Current investment levels are grossly insufficient to address projected global energy needs in the following years. If I am anywhere half correct, the repercussions of avoiding investment in conventional energy sources would be somewhat short of disastrous without a sane, practical investment plan — and timeframe — for creating green energy.

Governments may be as good as they choose to be. But their deliberate blindness to the repercussions of their efforts — severe recessions, shattered communities, and millions more starving — doesn’t render them perhaps less evil. And besides, the path to hell stands floored with gold.

Here’s a genuine consideration: ESG investment is more expensive, even if advocates claim that earnings are comparable to standard investment. As per a Wall Street Journal column from September 2021,  ESG investments are more costly than other forms of investment.

According to a Morningstar analysis, the asset-weighted mean cost ratio of ESG investments in the United States was 0.61% in 2020, as opposed to 0.41% for all open-end exchange-traded funds and mutual funds in the United States.

With time, even minor changes in expenditure ratios might accumulate. As per my estimates, a $100,000 portfolio with an 8% yearly revenue would grow to around $898,000 with a 0.41% cost ratio over thirty years, versus about $849,000 with a 0.61% expense ratio — a $49,000 gap.

It may appear insignificant. However, as public awareness has grown, 401(k) money managers have come under increasing pressure to lower their charges. It would undoubtedly be highly enticing for them all to increase their profits by persuading companies that they must choose ESG fund alternatives for their workers, despite the increased fund expenditure fees. Workers, of course, will bear the brunt of the consequences.

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

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.

Beneficiaries Named for Your TSP Supersede Wills and Trusts by, Aaron Steele

Do you know that your beneficiaries now supersede Wills and Trust? 

How are the Thrift Savings Plan (TSP) and most other government benefits similar? The reality is that payouts would not be delivered in line with a trust or a will after your demise.

Besides the TSP, beneficiary forms also control the Federal Employees Group Life Insurance (FEGLI), FERS or CSRS retirement payments, and non-paid wages. There’s a regular sequence of priority for government benefits if there’s no beneficiary application or if the individual(s) designated on the beneficiary document have died. 

Benefits will be distributed in the following manner: 

The first benefit goes to the spouse. The second benefit will go to the children or child in equal portions (for each stirps) (excluding step-kids except if officially adopted). Afterward, the benefit goes to the parents. The one after that goes to the court-assigned administrator or executor of the property. The final benefit goes to the closest family member, contingent on the constitution of inheritance in the region where you lived at the time of your demise.

But hold on! I’m confident that you are not astonished to learn that the typical order has an exception. A legitimate court ruling (e.g., in cases of divorce) would trump the standard protocol of priority and a specified recipient in the event of FEGLI.

You can establish a trust with your TSP recipient if you’d like your TSP to disburse your fund after your demise to people or entities you’ve named in the trust. If you decide to go this route, ensure that you speak with an experienced lawyer with a retirement plan and trust legislation. If you wish to place your TSP account in the care of specific people, the simplest method is to name them on the Thrift Savings Plan-3 form.

If your specified recipient is a government employee or retiree, they can presently roll your TSP fund into their own. Non-federal partners will be awarded a “beneficiary participant account” and can keep their funds in the TSP if their deceased partners identify them as a beneficiary. If your designated recipient is not your partner, they can’t leave the fund in the TSP account, but they can choose an “inherited IRA.” 

It allows them to extend the payouts out depending on the life prediction in some conditions. Except they fulfill specific requirements, most non-partner recipients are not able to choose inherited IRAs and extend payments for the rest of their lives as per the SECURE Legislation. The fund has to be drained in 10 years consistently.

Whenever in doubt, seek the advice of your federal benefits lawyer or counselor. It shouldn’t be too tough if you live in the Washington region. Many people may not be aware of federal perks if they travel further away. Consider having a private conversation with a benefits specialist.

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

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.

Take Time Now To Consider What You Want In Retirement by, Aaron Steele

It’s essential to work towards maxing your Thrift Savings Plan (TSP) contributions, especially if you plan to retire by the end of the year.

However, The reality is that most federal employees approaching retirement may not have the financial resources required to finance their TSPs adequately, and there are various reasons for it.

Most federal employees who work in a lower-graded position were setting away their $19,500 elective deferral limit, which is impractical. Some still have children to support through college, disabled spouses or children to take care of, or may have started their federal careers with a lot of debt to repay.

There are two conflicting options for anyone who believes they don’t have enough money for retirement:

1. Put in more hours at work; or

2. Make a budget that allows you to live on less.

1. Put In More Hours At Work.

If you don’t have enough money saved away to allow you to retire as you planned, consider delaying your retirement for a few more years to save more money. For instance, if you plan on retiring by the end of the year, you can delay by a year or more to grow your retirement income.

2. Make A Budget That Allows You To Live On Less.

If you don’t want to continue past your retirement age, you’ll have to look for a way to live on your available funds.

It would require creating a budget and sticking to it to ensure you don’t run out of money in retirement.

Neither of these options is particularly enticing. One must either work longer to abbreviate their retirement or live on less to be able to achieve some of the things on the bucket list that they had hoped to do in retirement.

If you face these difficult choices, ask yourself: “Which one is more important to me? Money or time? There’s plenty of time in retirement but no new sources of income.

So, if a person: A) enjoys (or at the very least does not despise) their profession; and B) expects to live a long time after retirement, they might contemplate working longer. Someone like myself (I enjoy what I do, and my family has a lengthy life expectancy) could be inclined to navigate the option of working longer.

You will enhance your CSRS or FERS pension, your Social Security income, and your ability to save more in the Thrift Savings Plan (TSP) for each extra year you work. You would also have one less year of retirement to save for.

On the other hand, if a person dislikes their job and their family’s lifespan isn’t as long, they may choose to take the money and run. What good is money if you don’t have anybody to spend it with? Early retirement allows you to spend more time with those you love â€” your spouse, kids, grandchildren, and others.

Someone like my wife (who had the worst boss in the world and whose family is a decade younger than mine) might go this route.

Another factor to consider is that as people get older, they are less able to participate in some of the more physically demanding retirement activities. So if you planned on taking a hike, traveling around the world, or engaging in some fun activities, it may be best just to quit and start exploring: but again, it requires substantial funds to engage in all of these activities.

One standard route for those in the latter category is quitting their jobs and working part-time. Most engage in coaching and other part-time jobs that allow them to earn some income in retirement.

But again, working in retirement may affect your Social Security benefits.

For every $3 you earn in retirement, the Social Security Administration (SSA) will withhold $1 of your Social Security benefits. So if you earned $3,000, your benefits would reduce by $1,000. This deduction will stop once you reach the full retirement age (FRA).

Conclusion

There is no “one size fits all” option when deciding whether to work longer or spend less in retirement. As you approach the retirement age, it’s best to consider your options based on your unique situation.

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

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.

Who Will Benefit From Your TSP Account?

When we leave the workforce, the nest egg we meticulously built up throughout our employment becomes one of three things: income, a legacy for loved ones, or tax obligations to Uncle Sam. Ideally, we prefer spending that money ourselves or knowing that the bulk of any leftover money will help our loved ones rather than the IRS.

It’s good to have a strategy in place to properly direct your hard-earned money to your heirs without losing a lion’s share to the IRS, especially since we hear more discussions about taxing inter-generational wealth and enacting higher future tax rates.

“What will happen to my TSP if I don’t use it during retirement?”

Suppose a married TSP participant dies with their spouse as the principal beneficiary. In that case, the account is retitled as a Beneficiary Participant TSP Account in your spouse’s name (as long as it has a minimum residual balance of $200). The TSP also will automatically reallocate the account to the Lifecycle Fund that best matches your spouse’s age. Spousal beneficiaries often have access to the same investment funds and similar payout options as the TSP’s original owner.

A Beneficiary Participant Account lets the spousal beneficiary keep deferring taxes on most of the account for life. It is achieved by basing the Beneficiary Participant account’s Required Minimum Distributions (RMDs) on their own life rather than the (deceased) original owner’s life expectancy. It’s a practice informally known as “stretching” the tax liability.

The ability to “stretch” the tax deferral over a more extended period implies that the money that would have otherwise been lost to taxes can now multiply in your beneficiary’s account for years. It also means that Uncle Sam generates less tax money in the short run.

That delay has become an issue as the national debt approaches $29 trillion, and we approach another run-in with the debt ceiling this autumn. Uncle Sam is no longer willing to wait decades for the tax revenue owing on an inherited IRA. As a result, it should come as no surprise that the SECURE Act of 2019 removed the ability for virtually all non-spousal beneficiaries to extend an inherited IRA for more than ten years (with several exceptions).

Non-spousal beneficiaries do not have the option of extending the tax deferral utilizing a Beneficiary Participant TSP Account under the TSP. Suppose a TSP Death Benefit is bequeathed to a non-spousal beneficiary. In that case, it is given as a single lump-sum payment, which can have significant tax implications if action isn’t done quickly.

“Who will benefit the most from my TSP account when I die?”

Imagine you have a $1,000,000 tax-deferred TSP account that you intend to give to your two children when you die, assuming that you love your children equally and want the proceeds from your TSP balance split 50/50 between them.

If nothing more is done, each of your children will get $500,000 in taxable income. These distributions would push each of them into the 35% marginal tax bracket for that year (assumption: tax rates have not been raised from 2021). If the children have their own jobs, their family income is included in the taxable TSP payout, thus increasing their marginal tax rate even further! Assume they live in a state where income tax is levied at a rate of 5%. That indicates that our aggregate tax rate might be as high as 40% (35% federal, 5% state), resulting in a $400,000 tax bill!

That only leaves $600,000 to divide among the children, leaving each with just $300,000 once the colossal tax burden is deducted. Uncle Sam, the unexpected beneficiary, has reaped the most profit from your decades of hard labor in this unfortunate scenario.

“How can I keep my Legacy tax bill as low as possible?”

If the inherited money were from a regular TSP and the children were correctly identified as beneficiaries, then they usually have a 60-day window to form an Inherited IRA and move the inherited money straight into the new account before the TSP mails out a Death Benefit. Under the new SECURE Act regulations, an eligible recipient can spread the tax burden over up to ten years by opening an Inherited IRA. That may assist keep them out of the higher marginal tax rates, lowering the overall amount of your inheritance lost to taxes.

Important: TSP profits must be transferred directly from the TSP to the Inherited IRA. The Death Benefit funds transferred to the non-spousal recipient will automatically have 20 percent deducted for taxes. The death benefit can’t be indirectly rolled into an Inherited IRA, and the TSP does not allow for a do-over.

Suppose the inherited money originated through a Beneficiary Participant TSP Account. In that case, TSP rules provide that upon the surviving spouse’s death, the entire account balance of a Beneficiary Participant TSP must be transferred straight to the beneficiary and can’t be rolled over into an Inherited IRA. That causes the same tax issue as in the preceding case, prompting many surviving spouses to consider moving their Beneficiary Participant TSP Account into an Inherited IRA. Transferring the funds to an Inherited IRA through your surviving spouse may make sense since it allows the following generation of beneficiaries to extend the tax deferral of their inheritance over ten years utilizing an Inherited IRA.

Consider the advantages of contributing to Roth accounts and using Roth conversions to help manage tax rate risk during your retirement and prevent higher future tax rates from possibly decimating the inheritance your loved ones get. Now, suppose your children inherit a qualified Roth TSP or Roth IRA. In this case, they will get a tax-free distribution of every single cent left in the account, which means that properly constructed and vested Roth accounts won’t produce a tax bill upon your death, even if tax rates rise in the following years.

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/

Several Resources that Could Help Seniors In-Need – Aaron Steele

Many people in the U.S. enter retirement with little or no savings. As a result, the majority of all of their income comes from their Social Security payment.

The most recent Social Security Administration (SSA) figures reveal that 12% of males and 15% of females rely on the benefit for 90% or more of their income. That can be difficult for a household: the average monthly payment in June 2021 was only $1,555.

Despite a larger-than-usual cost-of-living adjustment (COLA) of almost 6% this year, fast-rising housing and grocery prices have only heightened concerns among financially insecure retirees about managing their expenses and the future.

People are beginning to feel the effect of inflation, particularly on everyday items, says K.H., president and CEO of GreenPath Financial Wellness, a nonprofit debt counseling organization. That’s putting significant pressure on folks on fixed incomes.

Do you rely only on Social Security? Here are some coping tips.

Apply for food benefits

Many seniors aren’t using all of the food aid programs available to them, claim experts. According to a 2015 research, less than half of eligible seniors used the Supplemental Nutrition Assistance Program (SNAP).

For seniors, there’s a lot of misunderstanding about the program and many stigmas, which regrettably prevents individuals from seeking help.

The extra money may go a long way for seniors on a limited income: the maximum monthly benefit for a one-person household is $250. The money is accepted by grocery shops, internet vendors, and farmers’ markets.

SNAP has limitations about how much you may own in assets and earn in income to qualify for aid, and Social Security payments are considered. Still, some costs, such as rent and child care, might be deducted, and experts advise anybody who feels they may qualify to apply.

The USDA also operates the Commodity Supplemental Food Program, allowing certain low-income persons over 60 to receive a monthly food box comprising fruits, vegetables, cheeses, and other items.

Meanwhile, retirees with Medicaid health plan coverage might be eligible for free food through Mom’s Meals. In addition, some Medicare Advantage health plans provide meal benefits under the program for persons who have recently been discharged from the hospital or are suffering from a chronic ailment.

The meals, including Salisbury steak, spaghetti and meatballs, and sweet and sour chicken, are usually delivered every two to three weeks. People may notify the program if they have any allergies, and they can accommodate vegetarian diets and those suffering from diseases such as cancer or diabetes.

A Mom’s Meals spokesperson advised seniors who believe they may be eligible for free meals to contact a Medicaid or Medicare representative. Get assistance with health insurance and medication expenses. Health insurance and prescription expenses can eat away a big part of retirees’ funds. Fortunately, some may be qualified for monthly premium assistance through the Medicare Savings Program, according to Caitlin Donovan, a spokesperson for the National Patient Advocate Foundation. This nonprofit organization assists people in accessing and paying for health care. Donovan stated that your premiums, deductibles, and copays would be paid if you qualify.

Additionally, people enrolled in Medicare Part D, which covers medicines, should check whether they’re eligible for Extra Help. This program may be able to lower your drugs expenses. According to Donovan, the benefit may be worth more than $5,000 per year. There are also a lot of nonprofit groups that help seniors with their medical expenses. Copays.org, for instance, allows you to apply for funding to cover copays, premiums, deductibles, and OTC medications.
The National Patient Advocate Foundation maintains a financial resource list where you may look for local assistance for everything from dental treatment to end-of-life services.

Other options

While you must have a very low income to qualify, some retirees may be eligible for Supplemental Security Income, a means-tested program for people over the age of 65 or with a handicap.

In December 2021, over 2.5 million people received both Social Security and the supplementary payment in December 2021, which may be as much as $841 per month for an individual. You can apply online on the SSA’s website or by contacting 1-800-325-0778.

For additional help, visit the National Council on Aging’s “benefits check-up” website, where you may learn about over 2,000 options accessible to struggling seniors by ZIP code. The council also provides a handbook called “You Gave, Now Save,” which includes information on the most generous benefits that assist seniors with expenditures such as phone bills and property taxes.

Finally, some older individuals might be able to work part-time to supplement their income. According to Teresa Ghilarducci, director of The New School’s Retirement Equity Lab, more than a third of Americans over 65 are now doing so.

Ghilarducci mentioned that the Department of Labor has a program that assists low-income, jobless seniors in finding jobs and receiving specific training. The nonprofit SER and its network of community organizations that provide job training are also good resources.

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

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.

You Might Be Able To Take Advantage of the Saver’s Tax Credit

If you contribute to an IRA or an employer-sponsored 401(k), you may be eligible for the Saver’s credit, commonly known as the Retirement Savings Contributions Credit.
According to the IRS, beginning in 2018, if you were the intended beneficiary, you may also be eligible for a tax credit for contributions made to your “Achieving a Better Life Experience (ABLE)” account, a kind of savings account.

Benefit Amounts

According to the Internal Revenue Service (IRS), based on your adjusted gross income recorded on your Form 1040, the amount of the credit will be 50%, 20%, or 10% of the amount of the following: contributions made by the taxpayer during the tax year to a 401(k) plan, SEP-IRA plan or SIMPLE IRA plan.

Consider the following scenario: you earned $45,000 in 2020 and made a $2,000 contribution to your IRA. In this situation, you may be able to claim $1,000 of the total amount donated (50%) as a tax deduction on your income tax return. This lowers the amount of money that is taxed on your total tax bill.

The IRS emphasizes that rollover donations are not eligible for the tax credit. You may also be penalized for any recent distributions you received from an employer-sponsored retirement plan or an individual retirement account (IRA). This implies that if you are now in the retirement or distribution phase of the retirement accounts to which you have made contributions, you may be able to claim this tax credit simultaneously.

The highest amount that someone may qualify for with the Saver’s credit is $1,000, which means that the maximum amount you can claim is $2,000 if you qualify for $1,000. It was included in the Balanced Budget Act of 2016 and became effective on January 1st, 2018. The 2017 tax credits were approved as part of that legislation. Additionally, the $2,000 limit is for your combined eligible contributions if you file as married and filing jointly.

Suppose you contributed less than $2,000 to your IRAs or 401k plans in a given tax year. In that case, you typically cannot claim the Saver’s credit because it must exceed a minimum dollar amount based on your adjusted gross income.

Roth IRA Contribution Eligibility

To be eligible for this credit, you must have a traditional or Roth IRA that has been open for at least one year from when you file your taxes. For instance, if you opened an account in mid-December and did not contribute until late February, it would not count towards your eligibility. On the other hand, if the account was opened before December 1st, but contributions continued into 2019, those would qualify toward eligibility even though you purchased them within a full calendar year after its initial opening date.

Limitations on Contributing to IRAs/401(k)s

It would be best to contribute to an IRA or employer-sponsored 401(k) plan to be eligible for this credit. You may not contribute more than the maximum allowed by law (in 2020, it was $2,500, and in 2021 and 2022, it will increase to $3,000). Suppose you have been splitting contributions with your spouse. In that case, you both must have contributed at least that much to be eligible for the credit. For non-working spouses filing taxes jointly to claim this credit, their combined income cannot exceed $62,000. Wherever possible, these limits should be adjusted so that married couples who are filing jointly can use the full amount of whatever their limits allow towards getting a tax credit.

Where to Claim the Saver’s Credit on your Tax Return

You can claim this credit by first looking up your total eligible contributions made to all IRA accounts during the year. Next, multiply this amount by 10%, 20% or 50% depending on what is allowed for your adjusted gross income (refer to the chart above). Finally, enter this amount on line 52 of Form 1040, line 32 of Form 1040A, or line 8 of Form 1040NR. You may want to consult with a tax advisor if you are unsure how much you should be claiming, as it varies based on income levels and specific circumstances.

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