7 Things You Should Know About Claiming And Maximizing Your Social Security Benefits
/by mark heinrichAs you get closer to retirement, your decisions can significantly impact how much money you get from Social Security, some of which are irreversible.
Be aware of these 7 crucial factors
1. Full Retirement Age of Social Security
Your monthly benefit amount will vary depending on whether you claim your Social Security payments a few years before or after reaching Full Retirement Age (FRA).
Your Social Security’s FRA is when you are eligible for 100% of your Social Security benefits. Beneficiaries born between 1943 and 1954 have an FRA of 66, which eventually increases to 67 for those born in 1960 or after. Your benefits can decrease if you apply for benefits before FRA. If you register at the age of 62, your benefits could be reduced by up to 30%.
2. How Do You Qualify for Social Security Benefits?
You must earn a minimum of 40 “credits” throughout your employment to be eligible for Social Security benefits in retirement. You can earn up to four credits every year. Hence, qualifying for Social Security takes 10 years of labor.
3. What Factors Go Into Determining Your Social Security Benefits?
To compute your primary insurance amount (PIA), Social Security considers your highest 35 years of earnings, adjusted to a national average salary index. The years without earnings will be reported as zero if you have less than 35 years of earnings.
The amount of Social Security benefits you can get is determined by your retirement age. The maximum monthly benefit for someone reaching Full Retirement Age (FRA) in 2022 is $3,345. The maximum monthly amount for someone filing at age 70 is $4,194. The maximum monthly benefit for someone retiring early, at age 62, is $2,364.
4. The Social Security Cost-of-Living Adjustment (COLA) is made every year
One of the finest aspects of Social Security benefits is that they are adjusted annually for inflation by the government, which helps you keep up with rising living costs.
Because the COLA is based on changes in a federal consumer price index (CPI), its magnitude is determined mainly by the government’s overall inflation levels, which are different from those used in the monthly consumer price index (CPI) by economists and others.
5. The longer you wait to file for Social Security, the higher your monthly benefits will be.
You can file for Social Security benefits as soon as you turn 62. However, if you do that before reaching your Full Retirement Age (FRA), it will permanently reduce your payments by up to 25% to 30%, depending on your FRA.
You will receive 100% of your earned benefits if you wait until you reach FRA to collect Social Security payments. However, if you delay filing until you’re 70 to claim your Social Security benefits, your monthly Social Security income will increase by 8% annually.
6. Consider Social Security spousal benefit
When it comes to Social Security, marriage is rewarded. A spousal benefit of up to 50% of the other spouse’s Social Security benefit can be taken by one spouse. For example, if your Social Security benefit is $2,000 monthly, but your husband’s benefit is only $500, your spouse can receive a $1,000 spousal benefit, bringing in $500 more in monthly income.
Taking the spousal benefit at an early age, such as 62, can cut the amount, and you may end up earning as low as 32.5% of the higher earner’s benefit.
7. Your Social Security benefits may be reduced if you have other pensions.
If you have a pension from employment where Social Security taxes were not deducted from your income, your benefits would be affected. These include people who worked for a public school system, railroad workers, and the federal government hired before 1984 and covered by the Civil Service Retirement System (CSRS).
Spouses and children can get Social Security survivor benefits.
You can collect a Social Security survivor benefit if your spouse passes away before you. However, this will not be in addition to your benefits – one of them has to be chosen.
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/
Federal Employee Group Life Insurance Overview
/by mark heinrichAny 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/
TSP Policies Will Be Affected By This House-Approved Bill
/by mark heinrichWith 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
/by mark heinrichFederal 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 organizationsâ€â€the Federal Employees Health Benefits (FEHB) sponsorsâ€â€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/
5 Common Federal Employees Retirement Regrets You Should Know Today
/by mark heinrichHave 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/
How Will The Economy Handle More Retiring Early
/by mark heinrichMillennials trying to figure out how to make their retirement savings last their entire lives may want to consider retiring early. However, there are several factors to consider.
People should keep in mind that retiring before the traditional retirement age of 65 may impact their Social Security income. If a person retires before reaching the age of eligibility for Social Security, their payments will be reduced.
When calculating how much money is needed to retire at 62 or 63 rather than 65, individuals should use the average life expectancy for their gender and race group. If this information is available online, people will better understand how much money they should save.
If a person earns less than they would at their current job, it may be advantageous to retire early. By planning for this, individuals can often work toward paying off debts, accumulating more money, and researching different options for retirement savings.
When weighing early retirement benefits, individuals should consider the income taxes withheld from their paychecks. Retiring before 65 could result in a sizable tax refund, depending on how much is deducted from each paycheck today. However, because Social Security benefits are not taxed, taking advantage of an early Social Security withdrawal will not affect the amount paid after retirement.
When determining the best time to retire, consider the type of lifestyle desired in the future. Some people will want to work into their retirement years, but most retirees do not want to work indefinitely, even though the law doesn’t require them to stop working.
If a person is concerned about having too much income tax withheld, they may be able to make changes with the Social Security Administration (SSA) each year. This ensures that taxes are deducted from retirement paychecks paid for any outstanding taxes. Anyone who wants to avoid paying more taxes than necessary should experiment with changing their tax withholding throughout the year.
Someone who has achieved an early retirement goal is delighted because they have met one of their goals  someone who works hard to save money.
According to new data from the New York Federal Reserve, Americans are less likely to work into their 60s. A July labor-market poll found that 50.1% intend to work past the age of 62. According to Bloomberg, this proportion is down from 51.9% a year ago and is the lowest since the Fed’s study began in 2014. The number of Americans who expect to work until the age of 67 has fallen to 32.4%, from 34.1% a year ago.
While early retirement benefits individuals, it may harm the US economy. Using Bureau of Labor Statistics data, Business Insider reports that since COVID-19 came to the United States in February 2020, more than one million older persons have departed their jobs.
Official numbers show that over 1.5 million Americans blamed the pandemic for their absence from work in August, while others were likely absent due to a lack of enticing job opportunities. The most recent Fed data, according to Insider, also suggests that early departures are the new normal rather than a pandemic-era phenomenon.
Early retirement, according to Insider, may push employers to refocus their attention on younger employees since businesses have become more reliant on older workers over the last two decades. According to the Bureau of Labor Statistics, employment for those under 55 has remained largely consistent since 2000, while employment for people over 55 has increased by about 20 million people. This shows that the American economy has become more reliant on employees who will retire in less than a decade.
Employers will have to begin looking to younger generations to fill the positions of those who are retiring. This won’t be easy given the changing demographics of the American population. While older Americans are leaving the labor force in greater numbers, the millennial generation is entering the labor force at a much lower rate than previous generations.
Some 80 million Americans were born between 1982 and 1998, making the millennial generation the most educated generation in United States history. Unemployment rates are twice as high as in previous generations. This could be because employers prefer individuals with more experience, which can be challenging to find when looking for work.
On paper, early retirement appears appealing, but many people overlook the fact that working less means losing money. They can’t afford to buy everything these days on their current salary, which may cause problems when the bills start coming in.
People must have a goal in mind to determine whether or not now is the best time to retire. If there isn’t one, figuring things out before retiring is a good idea because it gives them time to decide whether or not now is the right time to retire.
Contact Information:
Email: [email protected]
Phone: 9187441333
Bio:
Mark, a lifelong Tulsan graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts in Accounting. Mark served in the United States Army as a Captain in the 486th Civil Affairs BN. Broken Arrow, Oklahoma and retired in 1996. Mark is married to his high school sweetheart Jenny and has four beautiful children. Mark’s passion for his work, which includes over 20 years in the Financial Industry started as an Oklahoma State Bank Examiner. Mark examined banks throughout Oklahoma gaining a vast knowledge and experience on bank investments, small business and family investments. Mark’s experiences include being formally trained by UBS Wealth Management, a global investment firm where he served as a Financial Consultant specializing in Wealth Management for individuals & families. Mark is a licensed Series 24 and 28 General Securities Principal and an Introducing Broker Dealer Financial Operations Principal. Additionally, Mark is a Series 7 and 66 stockbroker and Investment Advisor focusing on market driven investments for individuals, businesses and their families.
Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation.
Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.
Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564
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/
More Federal Employees Might See Dental and Vision Benefits, Brought to you by Mark Heinrich
/by mark heinrichMore Federal Employees Will Have Access To Dental And Vision Benefits, According To OPM.
More federal employees will have access to dental and vision benefits, according to the Office of Personnel Management (OPM). As per the proposed regulation published in the Federal Register, the OPM wants to extend dental and vision benefits to nearly 86,000 federal employees.
The proposed rule extends dental and vision coverage under the Federal Employees Dental & Vision Insurance Program (FEDVIP) to part-time and seasonal federal employees who work at least 130 hours monthly for 90 days or more.
It also extends FEDVIP benefits to firemen on temporary assignments and intermittent emergency responders who may not be expected to work 130 hours a month for 90 days or more.
Since 2012, these firefighters have been eligible to join the Federal Employees Health Benefits (FEHB) program, and since 2015, temporary and seasonal federal employees have also been eligible.
Certain Postal Service personnel would be subject to the rule as well. FEDVIP would be available to certain temporary USPS employees who worked at least 130 hours monthly for at least 90 days.
The Office of Personnel Management (OPM) does not expect that this regulation will have a significant influence on the broader dental and vision insurance markets. The proposed rule will be open for public comment until December 20, 2021.
What Changes?
Employees who work at least 130 hours per month and are likely to do so for the next 90 days are currently eligible for FEHB but not Federal Employees Dental & Vision Insurance Program (FEDVIP). According to IRS criteria, such employees are full-time workers, but they do not work the required 33 hours per week to be deemed full-time federal employees.
Employees that are recruited seasonally or for a limited length of time yet work near-full-time schedules throughout that time are also included in this category. Employees who work less than 130 hours per week may also be eligible for FEDVIP coverage.
“According to current FEDVIP regulations, certain firemen on temporary assignments and recurrent emergency personnel for wildland fire prevention are not eligible to enroll.” The proposed rule notes that “these employees are separate from the groups indicated above because they may not be expected to work 130 hours each calendar month for 90 days or longer.”
“Eligibility to enroll in the FEHB Program was extended in 2012, upon request by an employing agency, to employees in positions that offer emergency response services for wildland fire prevention, as well as personnel conducting similar kinds of emergency response services if approved by OPM.” These employees will also be eligible to participate in Federal Employees Dental & Vision Insurance Program under this proposed rule.”
Enrollments under the new eligibility rule would take place within 60 days of the final rule’s publication.
To minimize a coverage gap, the rule would extend the registration time for active duty service members transitioning to uniformed services retirees.
Military members have 60 days from the date of their status change to uniformed service retirees to enroll in FEDVIP, and enrollment takes effect at the commencement of the first pay cycle after the enrollment information is received, according to existing regulations. Because of the existing system, individuals may face a gap in coverage throughout their transfer.
Instead, the proposed rule by OPM would extend the enrollment period to encompass the 31 days before a retired service member’s other vision or dental coverage expires, allowing registration in the Federal Employees Dental & Vision Insurance Program plan to begin when the old coverage expires.
If they or a family member became qualified for Veterans Affairs dental and vision services, current FEDVIP enrollees would have a new option for canceling or lowering their coverage.
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/
The Role of Your Agency in Your Retirement Application – Mark Heinrich
/by mark heinrichIt is important to prepare in time for your retirement. Ideally, it would be best if you started planning a year ahead of when you wish to retire from your work. If you don’t have much time left to retire from service, then you’ll have to work within your constraints.
A cautionary note to those who believe this next step will be painless and that your application will be sent to the Office of Personnel Management (OPM) for adjudication and immediate commencement of your annuity: That’s not how it works.
The length of the process within your agency will be determined by several factors, including the workload in your personnel and payroll departments. It may take longer if they are understaffed due to COVID-19 and/or buried behind a mountain of retirement applications.
After receiving your retirement application, your personnel office will decide if:
1. You fulfill the age and service requirements to retire on the date you have specified, and
2. You will be able to keep your Federal Employees Health Benefits (FEHB) and/or Federal Employees’ Group Life Insurance (FEGLI) coverage even after you retire.
If there are no issues, your personnel office will prepare a Certified Summary of Federal Service, which will detail your federal civilian service as well as any military service you may have. You will need to examine it for correctness and make any necessary adjustments when they provide you a copy.
When you’re close to retiring, your personnel office will:
• authenticate your FEGLI coverage to OPM if you’re eligible to do so;
• transfer your FEHB enlistment to OPM if you’re eligible to do so;
• forward any current beneficiary designations in your OPF;
• process an SF 50 (Notification of Personnel Action) to detach you from the service; and
• complete and authenticate the personnel office portion of your retirement.
Following these stages, your payroll office will:
• approve the payment of your last wage once you’ve separated for retirement. It will also allow any lump-sum payment for unused yearly leave that you are due. It will also allow payment if you have been offered a “buyout.”
• validate and close your Individual Retirement Record (IRR), which is an official record of your current service, pay rates, and unused sick leave credit for retirement reasons, among other things. The IRR can’t be closed until your last paycheck is received since it includes a list of your retirement deductions for your last term of work.
• confirm your yearly basic salary for FEGLI life insurance reasons, if you have any, and
• send your retirement package to the OPM.
When your file is forwarded to OPM, your agency payroll office will normally tell you. The registration number, transmittal and mailing dates, and your payroll office number will all be included in that notification. If you need to check on the progress of your case after it has been forwarded to OPM, then you’ll need that information sent earlier. You’ll have to contact your agency if they don’t inform you.
Your OPM case will be given a new registration number once it is received. You won’t have to contact your agency’s payroll office if anything happens on the case, and you won’t have to. Keep in mind that OPM typically takes 30 days to complete a retirement package from the date of receipt, although this time limit might vary.
OPM will notify you when it has completed processing your retirement application, which is normally seven to ten working days after receiving it from the agency.
If all goes well, this entire process will take approximately six to nine months. But if there are problems with your pay records, medical coverage records or other items, it could take longer. Also, suppose you are eligible for both retired military pay and federal retirement benefits. In that case, you’ll need to complete the application process for both retirement systems before either agency can act on your case.
If you have questions about this or any other personnel-related issue, please call your agency’s human resources office and ask for a list of their federal human resources specialists. They are the people who regularly work with OPM on retirement-related issues, so they should be able to answer your questions.
Every federal agency has at least one person assigned as the agency’s representative for this hotline. They are the points of contact for anyone who wants to ask any retirement questions. If you don’t know who your agency’s rep is, call your personnel office or human resources office and ask them to connect you with that person.
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/
The TSP Only Gives Participants 80% of Their Money. Here is the Reason. – Mark Heinrich
/by mark heinrichThe Thrift Savings Plan (TSP) is a fast and convenient method of wealth-building for federal employees. Participants of the plan can contribute towards retirement straight from their paychecks before spending money on all other things.
The board that oversees the plan then invests the money in safe and profitable investment assets that help to increase participants’ savings over time. Plus, TSP accounts are tax-advantaged.
Federal employees who use the traditional TSP, which is currently more popular, can expect tax deductions in the year they put their money into the plan. Federal employees who use the Roth TSP do not have this tax advantage for contributing money to the plan, but whatever they contribute to the plan will continue to grow tax-free until they withdraw the money.
Not many retirement plans or accounts have the many advantages that come with TSP accounts. In fact, workers that stay dutiful in their contributions can hit the one million mark or even exceed it before retirement. Every federal worker looking for a pleasant, stress-free retirement should use the TSP to save money and build wealth while getting great tax considerations on their money.
Why Participants only Get 80% of their contributions to the Plan
While TSP has been around for quite a while, many federal workers are still in the dark about some aspects of the plan. The most confusing aspect is probably the process of withdrawing funds from the plan. The process is extremely confusing for many federal workers, especially when they request $2,000 from their traditional TSP and find out that 20% of that has been chopped off.
The TSP has an obligation to send workers only 80% of their money. The other 20% goes to the IRS. Traditional TSP accounts are tax-advantaged, but participants still have to pay taxes on their earnings from the plan.
Another important thing to note about the process is that the TSP may withhold less than a worker owes to the IRS. Generally, the plan withholds 20% on withdrawals to send to the IRS. However, it does this without calculating how much a participant really owes the agency. So, if you owe more than 20% of your withdrawals, you have to inform the TSP to withhold more than 20% or save money for when the IRS comes calling.
You could also owe less than 20% in taxes, but the TSP will almost always withhold 20% of withdrawals. The tax withholdings also apply to rollovers. If you want your entire savings in a TSP account to be rolled over, you have to pay up the 20% withholdings. Failure to do so would leave the portion not rolled over taxable. This process drastically cuts down the tax considerations that feds enjoy with the TSP.
However, you can avoid these withholdings by not making any withdrawals from your TSP account until the IRS requires you to do so. Doing this will help you keep your money safe and complete for a long time. The grace period will, however, end the year you turn 72. By this time, all participants are expected to take the required minimum distributions (RMD).
Note: the above information only applies to federal employees who use traditional TSP. The TSP does not withhold any portion of their withdrawals for those who use Roth TSP and follow all the rules guiding the plan. This is because Roth TSP does not attract tax deductions on withdrawals as traditional TSP does.
Tax Withholdings Could be Lesser Than 20%
As stated earlier, the general rule of thumb for tax withholdings is 20%, but the percentage could be lower or higher depending on different situations. There are seventeen different withdrawals types from TSP accounts. Each of these withdrawal types has special waivers, withholding percentages, and other special considerations.
However, the most common withdrawal rate is 20%, which is why that is our main focus for this article. It applies to the most popular withdrawal types. The second most popular withholding rate is probably the 10% type. This rate is applicable for RMDs and financial hardship in-service withdrawals.
Another exception to the 20% rule occurs when participants take an installment payment for ten years or more or based on the IRS life-expectancy table. For this situation, the tax withholding rate is similar to someone who is married and has three dependants.
This PDF file contains the types of TSP withdrawals and the withholding rate for each, along with other important information. You will find the eighth page of the document most enlightening on the topic.
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/
Eligibility Requirements for FERS Disability. By: Mark Heinrich
/by mark heinrichUnder the Federal Employees Retirement System (FERS), federal employees may enjoy disability benefits if they meet certain criteria. The benefits also extend to former federal employees who left federal employment within the past year. The main factor that makes you qualified for disability benefits is having a disability that impedes normal productivity.
Understanding the intricacies of the scheme is vital so that you can reap the benefits of the program. Many people do not know the eligibility requirements and method of application. As a result, they lose out on the benefits. According to the Office of Personnel Management (OPM), the applicant should meet the following criteria to qualify for FERS disability benefits:
- Applicants must have at least eighteen (18) months of creditable employment history under the FERS.
- Applicants must have been disabled while in civilian service, and such disability must stop or hinder the expected productivity of such applicants.
- Applicants’ agencies should attest that they cannot make reasonable accommodations for the disability, nor can they place the applicant in another position that pays the same as the present position.
- The disability should be expected to last for over one year.
- Applicants or their guardians must apply for disability retirement within twelve (12) months of leaving their federal employment. Applicants are to submit such applications to their agencies or the Office of Personnel Management (OPM).
- Lastly, applicants must apply for Social Security disability benefits.
Applicants must, however, note two important things. One, qualifying disabilities need not be work-related. Two, not getting approved for Social Security benefits will not affect your application for FERS disability benefits.
If you meet all the requirements, you can proceed to apply for the disability benefits. You can do this by filling and submitting SF 3107 and SF 3112 forms. The first is the application for Immediate Retirement form, while the other is the Documentation in Support of Disability Retirement form. Your agencies can fill and send the forms to the OPM, but you still have to provide other necessary documents to prove your eligibility.
In addition, when applying for FERS disability, time is never your friend. You have to apply as soon as possible. The OPM will not process your application if you apply more than a year after you leave federal employment. Also, the earlier you apply, the faster it is for your agency to locate your personnel records. It is also advisable to send all FERS disability applications directly to the OPM.
As soon as the OPM approves your application, the agency will send you your final retirement record. Your agency will also confirm the final date of separation. The OPM may request regular medical updates to ascertain that you are still eligible to receive the benefits. You may need to pay for medical examinations when the OPM calls for such medical updates. Failure to provide the required proof will stop your benefits. As soon as you no longer need periodic treatments or become free of the illness, the benefits will also stop.
If the OPM does not approve your application, you can request a reconsideration within thirty days of the rejection notice. During this stage, you may need to provide more documents to support your disability claim. As a last resort in the case of another denial of your claim, you must proceed to the Merit Systems Protection Board to have an Administrative Judge review your suit.
The application process can be a hassle. If you find that everything looks confusing, you should employ the services of a federal employment lawyer to guide and represent you, especially if your disability claim is denied.
Five Things That Can Fill the Hole in Your Retirement Plan. By: Mark Heinrich
/by mark heinrichAre you the one who saved and invested for your retirement and spent 40 or even 60 hours per week for more than 50 years? Do you want to kick back, play bridge, go fishing or golfing, and enjoy your time doing your favorite activities? Are you the one thinking you no longer need to answer to the boss? While these questions were hitting your mind, the coronavirus pandemic clobbered the economy. The stock market starts declining, the economy begins plunging, and your returns disappear. Now, what would you do? We have done some research and have come up with five things that you can do for a secure retirement.
- Assess the risk around you: Developing situation awareness is the key to securing your retirement in this crucial situation. This phrase comes from military aviation and is often defined as the assessment of environmental elements and events happening around you, the results of conditions around you, and the impact of a particular situation on your future status. This phrase was considered essential for pilots who wanted to survive while dealing with enemy aircraft.
From an investor’s point of view, this phrase means assessing the risks around you and understanding the potential outcomes of a particular situation on your investments. Check things that happened in history. Prioritize the critical inputs. Remove the redundant information and focus only on essential and informative sources. The most important thing is to analyze things that are in your control and that are not. - Develop a “decumulation” plan: How many assets will you draw down each year? Well, this is a tough question that thoroughly depends on so many unknown factors like inflation, rate of interest, yields, financial needs, and sometimes longevity. William Sharpe, the winner of the Nobel Prize in 1990, received the award for his work on a model that is useful while making investment decisions, and he mentioned that using savings in retirement is the hardest problem while managing finances.
The best way to manage this is to come up with a financial plan that helps you to deal with unknown factors and focus only on your goals.
Every plan will help you understand your spending each year. If you do not come up with this plan, you are likely to spend more, and your financial situation is expected to worsen. It is always a better idea to start from a position where you have detailed knowledge instead of no experience to retire stress-free. - You must try to understand risks associated with your fixed income: Some investors find it tempting to spread between the highest- and lowest-quality bonds. Everyone should take a lesson from the 2008-09 crisis that teaches us chasing yield is an expensive and foolish proposal to make. You should never buy the lowest-quality bonds just because the Federal Reserve is buying them. You should invest some time and think about your debt. Bonds help you retire peacefully. They do produce income. The most important thing is they should promise the return of capital and not return on equity.
You should understand and make your fixed income a vital part of your diversified portfolio. It is better to stick with investment-grade bonds. No one can go wrong with high-quality corporate debt. Do you know, Treasury Inflation-Protected Securities (TIPS) is the best one against inflation? There are so many options available under the municipal bond markets, especially general obligation bonds. There may not be many state defaults, but you should be ready to see some scary moments from places like New Jersey and Illinois. If you are close to your retirement, you should avoid those places. - High yield, or junk, debt may look attractive. But you have to be careful. In the past few weeks, the most significant high-yield exchange-traded funds, including iShares iBoxx High Yield Corporate Bond ETF and the SPDR Bloomberg Barclays High Yield Bond ETF dropped by 22% and 23%, respectively, last month and are still dropping more than 10%. Individuals who wanted to rebalance then are really disappointed.
Replace individual stock holdings and concentrate on equities: The apparent reason for this transition is that equities provide higher than expected returns, and bonds are riskier. That means there is a possibility that you may not get the returns you hoped for and end up disturbing your stomach along the way. But they are expected to rise in the long run; no one can afford to live without them. - The solution for this problem is to replace all stock holdings, expensive funds, and alternative investments with low-cost index funds. For individuals who are in or close to retirement, the risk-taking possibility is too high. Just like Apple and Google and Amazon have dropped as much as 80% at various times, like junk bonds, you do not need to invest in them when they are on the lower side.
Manage your money as your mindset. This may look much trickier, especially during times of ups and downs in the markets. The best way to do this is to manage your money as per your mindset. We had heard stories of recent retirees who were paralyzed when they were asked to spend their savings. Surprisingly true, but under-spending can be a bigger issue for retirees who are living beyond their means. Under these circumstances, software programs can help. Every financial adviser uses software to find how much an individual can spend each year. There are online retirement calculators that do a similar job.
You spent decades of your life in a job, so you need to work on your return to enjoy your retirement to the fullest. Fill your plan right, and your retirement will be well worth it.
This article does not point to the opinion of Bloomberg LP and its owners.
Barry Ritholtz, a Bloomberg Opinion columnist and the chairman and the chief investment officer of Ritholtz Wealth Management, was chief market strategist at Maxim Group. He is the author of Bailout Nation.
Similarities Between Quarantine and Early Retirement Sponsored by Mark Heinrich
/by mark heinrichAs per Mark Heinrich, for many Americans, coronavirus has forced a new lifestyle of working from home. While frustrating and sometimes difficult, it has also removed many of the negatives of daily life, whether this is working in the office or commuting. Instead, this time is used walking the dog, learning a language, or spending time with family. With this in mind, it’s not surprising that some have drawn links between the quarantine and early retirement.
Especially for those who aren’t able to work from home and are therefore filling their days with leisure, it’s a life that many will struggle to leave behind. For example, one Reddit user claimed that they’re working fewer than 10 hours per week. For the rest of the time, she’s able to get creative with meals, relax with the TV, exercise, complete household chores, and go for long walks.
According to Mark Heinrich, for those with an eye on early retirement, or so-called FIRE (financial independence, retire early), the quarantine has been somewhat motivating. The Reddit user in question says she plans to retire with more than she needs – this is called chubbyFIRE.
While people are working in some capacity, it’s still providing a helpful insight into what early retirement might be like when the day finally comes. Rather than working 9-5 as usual, we’re doing small amounts of work and then spending time as we wish, something we’re generally unable to do for such a prolonged period.
A Dream for All?
As per Mark Heinrich, not everybody is enjoying quarantine, and one user on the Reddit thread noted how they plan to spend their time with people. Instead of early retirement, they said this is just a world event. Similarly, others were offended that the user could think this way when friends and family members were in danger of the deadly pandemic. What’s more, the lack of travel and constant negativity in the news seems to have contributed to a loss of identity and overwhelming sadness.
For another user, they don’t want this life even though they’ve spent time on hobbies of old. In fact, they also claimed that early retirement was now off the cards because they enjoy working with others too much. Instead of working on a bucket list after retirement, they plan to do it now.
This is all normal for retirees, right? One retiree noted that they weren’t expecting much of a change during quarantine, but actually missed spending time outside and visiting others.
The FIRE Movement
According to Mark Heinrich, during the pandemic, those seeking FIRE have been under pressure since there’s a reliance on the stock market – a stock market that is now volatile. This has led to the question of whether a recession would end the movement, but some experts suggest not. Regardless of whether somebody plans to retire early or not, experts predict that everybody will suddenly have an interest in financial security. Especially for those who narrowly missed the recession of a decade ago due to their age, they now understand the importance of analyzing financial needs, investment, and careful spending.
For financial advisers, their job for anybody nearing retirement is to encourage conversions about lifestyle as well as money in general. Without knowing what to do with the extra time, it leads many into unhappiness and an unhealthy lifestyle.
Whether you’re still planning an early retirement or not, one of the biggest tips from experts is to have a purpose in life other than just work.
