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Generally, you are told to defer taxes now because you will end up in a lower tax bracket by retirement. Modern Federal Employees with retirement savings, pensions, and concerns regarding national debt may find this advice outmoded. We can delve further into this antiquated idea by inquiring about the following: How does someone drop to...Read More

Those hired in 20013 may have felt tinges of envy regarding other employees hired on at an earlier time. Those employed in 2012 and prior merely paid 0.8% of their salary for retirement, while those hired after 2013 paid as much as 3.1% due to revisions to the RAE (Revised Annuity Employee) law. Despite its...Read More

It can be critical to making decisions about how to outline the choices federal employees have to make when electing Civil Service Retirement System or Federal Employees Retirement System benefits at the time of retirement. These can include: Spousal survivor benefit elections for a maximum or partial survivor annuity. No survivor benefit in the form...Read More

ASAs Based on TSP Any worker that does not currently have access to an employer-sponsored retirement plan could potentially be given the opportunity for coverage under a new retirement savings account, thanks to the legislation introduced in the U.S. Senate. Initially proposed in January 2016 by Sen. Jeff Merkley, The American Savings Act would give...Read More

For those retiring there may be more than just the standard annuity options available. There exists another rarely used option: the insurable interest annuity. If you are not married but have a child or someone who would financially benefit from your being alive, this option may spark your interest. When a court order has already...Read More

Stong Gains for TSP With most funds in the green, July has proven to be a positive month for the TSP. By just a tiny fraction of a percent, the G Fund is up while the F Fund is down, but the good news is that the three equity funds have increased: C Fund: up...Read More

According to proposed legislation, federal employees will get 12 weeks of paid parental leave. This law applies to federal employees who adopt or welcome the birth of a new child. A Republican Congresswoman introduced the Federal Employees Paid Parental Leave Act of 2018 (H.R 6275) bill. H.R. 6275 seeks to align federal employee retention policy...Read More

When it comes to financial planning, federal employees often neglect estate planning. Regrettably, you’ll hear the quip that estate planning “is for the rich!” Most feds believe that only the affluent and millionaires need financial planning. Some assume that estate planning entails complex legal processes and specialist estate attorneys. Though this might be true depending...Read More

The American Savings Act has been reintroduced by Sen. Jeff Merkley (D-Oregon). Currently, federal workers and Congress members use the Thrift Savings Plan (TSP). This reintroduced plan would be modeled after the TSP, giving every worker (not just federal employees) without access to a savings plan for retirement the opportunity of having their savings account...Read More

In most companies and industries, employee sponsored 401 (k) plans phased out traditional retirement plans. Still, the military offers its uniformed members a pension scheme. Typically, military members receive a pension equal to 50% of the highest three-year base pay. Each year, pension amounts increase by 2.5% for members with twenty and above years of...Read More

Speculation is rife that a coming bear market, as well as a recession, will wipe out large portions of retirement portfolios. Also, local, state, and federal pension funds will be affected as well. But do these governments have the resources to fight back? To answer this question, let’s consider the following points. In 2018, we...Read More

Often, most of us think we’ve got our balance sheets in order. For instance, you might know how much you owe on your car, mortgage, and other debts. Others may know how much they have in retirement assets, house equity, and in retirement savings. However, if you hold any retirement savings in a 401(k) and...Read More