FERS

FERS or the Federal Employee Retirement System is the retirement system applicable to the employees that fall under the US civil service. Its inception can be dated back to January 1, 1987 when it replaced the CSRS.

Social Security and the Offset for Government Pensions

April 2, 2023 /by jeff boettcher

What if you were employed by the government but did not contribute to Social Security while you were employed? In that case, the Social Security Administration would reduce your Social Security spousal, widow, or widower benefits by two-thirds of any government pension you get. This is known as the Government Pension Offset (GPO).

How does this work?

A spouse who receives an annuity from a job where he or she did not pay Social Security taxes, such as those receiving a CSRS annuity, has their Social Security payment reduced or eliminated by the GPO. If you fall under this category, your CSRS annuity will be decreased by $2 for every $3 you get in your Social Security spousal payment.

Your Social Security spousal benefit will be affected by your CSRS annuity to the full extent of its increase, up to and including its elimination.

For instance, you wouldn’t earn anything from Social Security if your monthly CSRS annuity was $1,500 and you were eligible for a $900 spousal benefit. That’s because $1,000 is equal to two-thirds of $1,500. If you deduct it from $900, you’re left with nothing.

Why would the government treat its workers this way?

The Social Security System was created to give those who did not work or had little income during their working lives a basic minimum level of financial security. In other words, spousal payments weren’t intended to supplement the Social Security benefits of working couples who were each eligible for one.

If one of them qualifies for both an earned Social Security benefit and a spousal benefit, they can only receive the benefit with the higher amount, not both.

CSRS beneficiaries who were married to Social Security beneficiaries were formerly entitled to both a full CSRS pension and a full Social Security spousal payment. However, Congress determined in 1982 that a worker who was enrolled in a retirement system for which they were not paying Social Security payments was benefiting unfairly. So, the statute was altered.

The Social Security Administration has created two clarifying examples that provide the best justification for the change:

Jude Fred receives a monthly Social Security income of $600. Ana, his wife, may be eligible for a wife’s benefit of up to $300, or 50% of Jude’s.

However, Ana also contributed to Social Security through her employment, making her eligible for a $400 retirement payout. Since her $400 retirement benefit effectively cancels out her $300 spousal benefit, she will not receive any spousal benefits.

Jude’s next-door neighbor, Robert, also receives a monthly Social Security income of $600. However, his wife, Mary, was employed by the federal government and received an $800 monthly civil service pension rather than a job requiring her to pay Social Security taxes.

Mary would have been qualified for both her $800 civil service pension and a $300 spousal benefit on Robert’s Social Security record had the government annuity offset rules not been in place.

With the offset clause in effect, Mary is treated the same as Ana because she is no longer eligible for Social Security benefits as a spouse.

The GPO affected about 11.5% of the 6.25 million spouse or widow(er) beneficiaries in 2020. The average non-covered pension for GPO beneficiaries in 2020 was $2,531, more than $1,000 above the typical Social Security retired worker payment of $1,544. The average non-covered pension for beneficiaries impacted by the GPO was $3,193 per month. Nearly three-quarters of beneficiaries had their entire spouse or widow(er) benefit deducted.

The way forward

It is frequently suggested that the GPO should be repealed since it was some accident or unexpected effect of a poorly thought-out amendment in the legislation during the Social Security reforms of 1980.

Congress consciously implemented the GPO to eliminate what it saw as an unfair advantage. Knowing that is little consolation to those experiencing its effects or who will retire in the future. But until and unless it is changed, it is the law.

It’s best not to hold your breath in hope, despite recent efforts in Congress to repeal or relax both the WEP and the GPO. Those proposals have been circulating since shortly after those provisions were passed nearly forty years ago.

Plan instead as if they will still be in place. Verify that your additional assets and investments, along with your CSRS and Social Security benefits, will be enough to cover your retirement expenses.

Contact Information:
Email: [email protected]
Phone: 8007794183

Bio:
For over 20 years, Jeff Boettcher has helped his clients grow and protect their retirement savings. “each time I work with my clients, I’m building their future, and there are few things that are more important to a family than a stable financial foundation.”

Jeff is known for his ability to make the complex simple while helping navigate his clients through the challenges of making the right investment decisions. When asked what he is most passionate about professionally, his answer was true to character, “Helping my clients â€“ I love being able to solve their problems. People are rightfully concerned about their retirement income, when they can retire, how to maximize their financial safety and future income.” Jeff started Bedrock Investment Advisors for clients who value a close working relationship with their advisors.

A Michigan native, Jeff grew up playing sports throughout high school and into college. While Jeff is still an ‘aging’ athlete, Jeff will take more swings on the golf course than miles running these days. He creates family time, often with weekly excursions to play golf, a hobby he shares with his three young children.

Disclosure:
Investment Advisory Services are offered through BWM Advisory, LLC (BWM). BWM is registered as an investment advisor and only conducts business in states where it is properly registered or is excluded from registration requirements. We are currently either state or SEC-registered in the following states: Arizona, Florida, Illinois, Kansas, Louisiana, Michigan, New York, Oregon, Texas, and Washington. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. 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. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark. Any comments regarding guarantees, safe and secure investments, guaranteed income streams, or similar refer only to fixed insurance and annuity products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company and are not offered by BWM Advisory, LLC. Guaranteed lifetime income is available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. 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. Not affiliated with the U.S. Federal Government or any government Agency.

Re-designation of Many Federal Employees for Higher Pay Zones

March 29, 2023 /by mickey elfenbein

Many employees have been removed from their positions due to locality-based payments. It was planned and estimated by the evidence provided. According to the report provided by the U.S. Office of Personnel Management (OPM), many employees will be re-designated to an area of high locality for the year 2023.

This may apply to an estimated 32,000 employees. Each year, federal employees receive adjustments for their pay based on the Employment Cost Index for the workers of the private industries subtracting 0.5 percentage points. Therefore, allowance for locality-based pay would be made in areas where the difference in pay between federal and non-federal employees is much more than five percent.

New areas have been defined where the employees would receive the locality-based payments. Among the list of cities with new regulations, California, Fresno, Nevada, Rochester, New York, Washington, Reno, and Spokane will be the new locality pay areas. Also, many workers would be shifted to existing locality pay areas, the OPM said in the report.

Press Secretary Viet Tran said while stating to Federal Times that 85 percent of the federal workforce lives outside the area of D.C. Thus, the OPM is working to ensure that locality pay is competitive in every community throughout the country. Also, the Department of Labor and the OPM, has revised the Federal Salary Council recommendation to create four new pay localities, expanding the existing areas.

The federal Pay Agent has identified the areas with local pay discrepancies. Therefore, they have made some suggestions to the president so he can address them. It was created as a part of an annual review. The Secretary of Labor, along with the White House Office of Management, Budget, and OPM directors, have made up the president’s Pay Agent.

Furthermore, the changes that are in consideration to be made for locality pay areas are tentative and will only be approved once the suitable rule-making is complete to make these changes permanent. The timing for the rule-making has yet to be established. The modifications discussed for the locality pay area should be implemented from January 2024 at the earliest.

As per the Federal Employees’ Pay Comparability Act of 1990, the U.S. Bureau of Labor and Statistics has been asked to conduct a survey and collect data on salaried workers that are non-federal. The National Compensation Survey estimates the salary difference level of work from the occupational average as said by the reports. The Occupational Employment and Wage Statistics data indicates the average salaries of many occupations in every locality pay area. Moreover, the changes made for 2023 state that federal employees will see a salary rise across the board of 4.1%. Also, the average locality pay would increase to 0.5% from January.

Contact Information:
Email: [email protected]
Phone: 6122163911

Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.

Going Back To Work Again After Retirement

March 23, 2023 /by jeff boettcher

Federal agencies frequently reach out to federal retirees as a potential source of recruits, particularly for highly specialized positions or when a sudden increase in work necessitates it. They prefer to hire individuals with experience in government services instead of new entrants.

Meanwhile, some federal retirees look for re-employment because they feel they still have more to offer the workforce or because retirement is not going as well as they had hoped financially or in other ways.

However, there are a few unique considerations when returning to work after retirement.

If you willingly retire, you will still be paid your annuity, but your new job’s income will be lower because of that pension. For instance, you would receive just $60,000 ($100,000 Ã¢â‚¬â€œ $40,000) if your annuity was $40,000 and your salary was $100,000.

However, if your retirement were forced due to a RIF, job abolition, transfer of function, reorganization, or right-sizing, your annuity would end, and you would start receiving the entire income of your new position. Therefore, you would share the same employment status with any other government employee holding a similar post and a comparable service record.

You will also become eligible for a supplemental annuity if you worked full-time, continuously for at least one year, or its equivalent if you worked part-time.

On the other hand, if you worked for at least five years or the equivalent, you would typically be entitled to a re-determined annuity that would take the place of the one you are presently receiving. To be eligible for those extra benefits in either scenario, you must contribute to the retirement fund while working or until your next retirement.

You would also need to meet the age and service criteria if your annuity ceased when you started your new job to be able to retire again.

In exceptional circumstances, you might be able to get both your annuity and your total wage. Initially, this exception only applied to jobs for which it was difficult to find or keep a qualified employee, where there was an immediate danger to your life or property, or when an emergency situation called for employment.

But over time, several other authorities have increased this payment for additional reemployed annuitants. Limited-time appointments are a government-wide authority, and agency-specific regulations are mostly in DoD. Ask if one of the exceptions applies to you if you are a retiree being considered for re-employment.

Impact of going back to work after retirement.

1. The Good: Health Insurance

The natural aging process can result in future increases in healthcare expenses. These expenses can deplete your funds, depending on your health benefits.

Health insurance may be the main reason for returning to work for those who retire before they reach 65 (especially considering the costly out-of-pocket costs of private insurance).

Consider returning to work if you’re purchasing pricey private health insurance before turning 65, when you would be eligible for Medicare.

In most circumstances, enrolling in a group health plan through your job could be less expensive than paying for your own health care out of pocket.

2. The Bad: Social Security

Your Social Security benefits can reduce if you opt to re-enter the workforce, depending on your age at retirement. According to the Social Security Administration, the full retirement age (FRA) is 67 for those born in 1960 or after.

The amount of Social Security payments you might get will reduce if you retire before FRA. If you haven’t reached FRA, there is an offset that, dependent on when you retire, can reduce your Social Security payment.

For every $2 you earn over the annual cap while not at FRA, the Social Security Administration will withhold $1 from your benefit payments. That cap is $19,560 for 2022.

They’ll also take $1 from your benefits for every $3 you earn over $51,960 in the year you attain full retirement age (FRA).

3. Potentially Bad: Pension Suspension

Your pension from your previous agency may be affected if you start working again. If you re-join the workforce for a different agency, you can still be eligible to receive pension benefits from your previous employer. However, regulations may vary from plan to plan.

By collecting pension payments from your previous employer while being paid a salary at a new one, you’ll be able to expand your revenue stream further. Payments might halt if you decide to work for your former agency once more.

The agency paying your pension will often stop paying benefits if you work for them again, though regulations may differ based on your employer’s pension plan. If you decide to return to your old job, speak with the firm to learn more about how your pension can be impacted.

Contact Information:
Email: [email protected]
Phone: 8007794183

FERS OPM Disability Retirement: The Mixed Case

March 16, 2023 /by mark heinrich

It is easily argued that every case is “mixed,” which means that the topic must always consider case law and statutory requirements in addition to the facts of the case. This is especially true for Federal Disability Retirement applications, where the medical records must be interpreted.
Given these facts, it is all the more important to understand that in a case involving a Federal Disability Retirement, merely repeating the medical records does not settle any points of contention. In consistently rejecting the federal employee’s claim for Federal Disability Retirement, OPM disregards the applicable statutes or behaves like an authoritarian bureaucracy free from any legislative or judicial obligation of the controlling laws.
In reality, every Federal Disability Retirement case is a mixed case in which precedents from similar cases have led to legal decisions affecting particular issues inherent in every application. The core disputes that arise rarely center on the medical documentation but rather more frequently on the legal interpretation that results from the application of the relevant laws upon the medical documentation.
Because the “medical specialists” at OPM are not lawyers, they are unaware of the significance and implications of the constantly expanding body of laws governing federal disability retirement. This is why the U.S. Office of Personnel Management frequently makes mistakes in its initial determination when denying a Federal Disability Retirement application.
This being the case, it is crucial to always reply with the force of the law when responding to an OPM denial of a Federal Disability Retirement application and to repeatedly remind OPM that their refusal to approve your case is not just a matter of analytical opinion; instead, it is a glaring and blatant violation of the laws that govern the issues about your Federal Disability Retirement application.
This is one area where a disability attorney can help. Disability lawyers know how to present a case in the most favorable light for their clients, from submitting the application to the hearing level and beyond. Your attorney can help you focus on the information that will be most persuasive to Social Security when submitting your initial application.
They can advise you on your “alleged onset date” of disability, make the case that your condition qualifies as one of the impairments listed in the “blue book” of impairments, and more. Your attorney can gather and submit pertinent medical evidence at the reconsideration and hearing levels, get your doctor’s opinion, draft a thorough brief to the Administrative Law Judge, and prepare you for questions at the hearing.
They will also collect helpful testimony from you during the hearing and may even cross-examine the vocational expert or medical expert to prove that you cannot work.
An attorney can also create complex legal arguments to demonstrate that Social Security incorrectly denied your case at the subsequent appeals stages at the Appeals Council and federal court.

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. Markâ€™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/

Medical Retirement of FERS OPM: Replacing Substances

March 15, 2023 /by marvin dutton

You might have observed that matters need to be dealt with in more suitable ways. But unfortunately, we all reside in a world where people do not prefer facts since they have been forsaken. Not only have these logics stopped being essential to many, but they do not matter anymore. Everything is being replaced by something wild.

People need to consider a meaningful way of delivering their thoughts. Instead, they would sarcastically reply with unwanted humor and shout instead of talking politely. Not only has it been going on, but people have now labeled it under the norm. The issues in our society are being addressed in gibberish, which no one would understand except for some groups.

It is now common to replace simple things with unfamiliar terms; it’s a new trend that modernizes people in front of others. Our system could now improve many things that we need to correct. But some things may improve. Although replacing substances has been messed up, an education system can play a minor role. Since the world is looking at new trends, the vintage and classics are left-behind. They have lost the values they used to hold. Other than that, anything that demands your ability to analyze critically is not worth it.

Therefore, people prefer to let go of hard work. Logic does not carry weight anymore. If you are to present any logic against your opinion, you are being difficult. Keep these valuable thoughts to yourself, or use easy terms. Also, realistic dialogues are censored; thus, they are no longer considered healthy chats. To prove your point, you only have to bang tables and ensure everyone understands and agrees. You have to be loud and clear to let people know who you are. People think it is a new way of addressing problems and concerns.

Federal Employees and U.S Postal workers who are about to file for Federal Disability Retirement benefits utilizing the U.S. Office of Personnel Management under FERS, on the brighter side, “The Law” should reign and the substance replacement. It is not wrong to say that it still exists in the denied letters issued by the U.S. Office of Personnel Management. Therefore, they must keep themselves engaged in the appropriate weight of law of cases and legislative power. Then and only then will they be able to achieve what they are looking for. These things are understood much better with the help of a lawyer. Hence, you should contact a lawyer specializing in Federal Disability Retirement cases who can explain it to you, which, without a doubt, does not allow the substance replacement of the rights you own as a Federal Employee under FERS. Indeed, with help, you will see the law prevailing, and they will understand your concerns.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Inflation’s Bite Gets Worse for Retirees.

March 14, 2023 /by rick viader

Managing Retirement finances is becoming complicated. Many seniors are cutting back or eliminating essential costs due to rising gas, housing, and egg prices.

As prices climb, CNN Business interviewed several retirees about their spending habits. The shock of the substantial food price increaseâ€”especially in meat, fruits, and vegetablesâ€”was a recurrent theme.

Additionally, the price of groceries increased by 10.8% from April 2021 to April 2022.

Inflation affects much more than just the grocery store. Here is how some retirees claim to be handling things.

Struggling and facing a rent increase

A local food bank truck comes to Donna Lyons’ apartment complex every two weeks, but she claimed she would need additional food for the month. Lyons is a retired woman from Fort Collins, Colorado.

“I depend on the food bank,” added Lyons, 67, who relocated to Colorado from Pennsylvania in 2020 to be near her two children and grandchildren.

She survives on her Social Security and Pennsylvania education system pension for decades of clerical and event-security labor.

In September, her rent will rise by $200, a 14% increase. After rent, taxes, insurance, prescriptions, and utilities, Lyons says she’ll have $150 a month for groceries and incidentals.

Since her funds are almost gone and her most recent grocery bill was $187, she’s still determining if she can stay in her apartment. However, she claimed she still needed to find cheaper local housing.

Lyons said, “I’ve considered packing my belongings and returning to Pennsylvania, but I don’t want to leave my family behind. She couldn’t imagine life without her kids after being hospitalized.

Her retirement expectations were far from reality. “Financial stress surprised me. I worked for 50 years, and saving was hard as a single mom. So I’m slowly consuming my savings to survive.”

Restarting part-time

Morgan Hill, California, resident Marisa Flynn, 73, is a retired teacher. Before beginning a second profession as a teacher in a public school, she had long managed her own electrolysis business.

Flynn needed to understand that her teacher’s pension would cut her Social Security payments by $400 a month. She stated that Medicare gets a higher share of her Social Security cost-of-living adjustments.

US petrol prices reached a record $4.60 per gallon. According to the Bureau of Labor Statistics, energy prices in April increased by 30.3% year over year. Natural gas and electricity are the most common forms of household heating and cooling energy.

Flynn consumes less heat and air conditioning. Even to visit her 40-minute-away daughter and grandchildren, she drives less. “I used to get in my car without thinking.”

California’s water constraints make it difficult to wash her automobile for $20. In addition, she said she couldn’t afford home repairs, internet, or eating out.

Flynn substitute teaches two half days a week to help make ends meet; she did this before the pandemic but has since restarted it even though it puts her health in danger from COVID-19.

She claimed that in addition to getting Meals on Wheels, she periodically visits a nearby senior facility for a free lunch.

“Not the retirement I had in mind. It is demoralizing. The government frequently discusses aiding child-bearing households. Elders from the middle class feel forgotten and invisible, “Flynn stated.

Flynn has contemplated moving to a cheaper place like Lyons, but she wants to stay with her daughter and grandchildren.

Shrinking financial buffer

Inflation is changing seniors’ behavior, but not all are struggling financially.

Richard Thomas, 73, of Arkansas City, Kansas, diligently planned for retirement throughout his career as a Boeing mechanic producing composite jet engine parts. That planning paid off, even though he received a pension that was less than he had anticipated in 2005. As a result, he was compelled to retire earlier than he had intended.

Thomas owns his home and has no credit card debt. “I invested in my 401(k) and savings after paying off my home. I retired financially stable.

Thomas and Peggy can handle their monthly expenses with Social Security, his pension, and an annuity they bought. That surplus is decreasing.

Thomas said, “The financial “cushion” I worked so hard to build is losing some of its paddings because of inflation.” It needs adjustments. As a result, they now travel even less.

Thomas agrees that the couple’s financial planning is helping them get through this time of rising prices better than most people. However, he stated that inflation is becoming burdensome.

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

Benefits and threshold adjustments based on inflation are about to take effect.

March 14, 2023 /by rick viader

Inflation-based adjustments to benefits, criteria, and other areas are made around this time of the year, and the numerical changes for the year are also announced within this period. We are all aware that the COLA for CSRS and Social Security is 8.7%, and for qualifying FERS employees, it is 7.7%. At the same time, things like the Social Security income test and the monetary amounts used to determine Social Security retirement payments have increased as a result.

The Thrift Savings Plan and Individual Retirement Arrangements are affected by the changes that the Internal Revenue Service has announced. These number changes may have already been mentioned to you (they were first revealed in October), but just in case, here they are.

In 2023, the TSP’s and other employer-sponsored plans’ voluntary deferral limits will be $22,500, and the catch-up amount for anyone 50 and older (including those who turn 50 in 2023) will increase to $7,500.

In 2023, IRA contributions are limited to $6,500 with a $1,000 catch-up contribution. The catch-up amount for IRAs is not adjusted for inflation.

Traditional IRA contributions are tax-deductible up to a certain income cap, which for 2023 is as follows:

Single filing status

You’ll get a full deduction if your income is less than $73,000.

You’ll get a partial deduction if your income is between $73,000 and $83,000.

No deduction is permitted if your income exceeds $83,000.

Joint filing spouse enrolled in a workplace retirement plan

You can take the full deduction if your income is under $116,000.

You can make partial deductions if your income is between $116,000 and $136,000.

No deductions are permitted if your income is more than $136,000.

Joint filing spouse not enrolled in a workplace retirement plan

You can take the full deduction if your income is under $218,000.

You can make partial deductions if your income is between $218,000 and $228,000.

No deduction is permitted if income is more than $228,000.

Additionally, there are income thresholds at which Roth IRA contributions are entirely prohibited.

Single filing status

The full contribution is permitted if income is less than $138,000.

A partial contribution is allowed if your salary is between $138,000 and $153,000.

Contributions are only permitted if your income is less than $153,000.

Joint filings status

The full contribution is permitted if your income is less than $218,000.

A partial contribution is allowed if your salary is between $218,000 and $228,000.

Contributions are not permitted if income exceeds $228,000

You can make non-deductible contributions to a conventional IRA regardless of your income.

How much have these figures grown over time as a result of inflation?

The income restriction for persons in the single filing status was $25,000 in 1987, when the deductibility of IRA contributions was initially restricted; this year, it is $73,000. Over time, a dollar’s purchase value has slowly declined. Knowing this, we should modify our TSP and IRA withdrawals to reflect it; perhaps we start withdrawing at a lower rate and modify TPS withdrawals annually for inflation. We are fortunate that CSRS, FERS, and Social Security automatically adjust for the cost of living.

Additional Retirement Plan Modifications

Other adjustments to retirement programs were made. If you have specific questions, you might want to talk with a financial professional about how these changes could affect your investing plan.

Retirement Age Previously, you had to start taking distributions when you turned 70 1/2. The required minimum distribution (RMD) age has been raised to 72. If you attain 70 1/2 before January 1, 2020, it is still 70 1/2.

Deadline for IRA Contributions 2022

The last day to make an IRA contribution for the tax year 2022 is April 15, 2023.

Do you know…

Your choice to purchase a TSP life annuity is final if you do so. You are obligated to stick with your choice, even if circumstances change. Perhaps this explains why a far higher percentage of participants select flexible installment payments than life annuities.

More opportunities to invest and increase your retirement wealth result from larger contributions, particularly for self-directed IRA investors. In an era where retirement savings are so much more important than they once were, the industry has been calling for change, and perhaps this is a beginning in the right direction. Please consult a tax expert if you have any questions regarding the tax ramifications of these IRS adjustments.

Contact Information:
Email: [email protected]
Phone: 9568933225

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

Why You Need a Power of Attorney

March 9, 2023 /by marvin dutton

Having a power of attorney on hand might be very helpful. The inability to sign your name legally could have dire financial ramifications if, for example, you suddenly suffered a stroke with no warning signs beforehand. One way to safeguard yourself against such a situation is to have a power of attorney.

As a result, a power of attorney document is essential for most people. You’re free to name more than one and indicate whether each must work together or operate independently. Your children might be named “attorneys-in-fact,” stipulating that they both need to sign off on any actions taken in your name.

Anyone you want to nominate must be someone with complete confidence. Usually, this is a younger and closer family member. You may delegate various responsibilities to various individuals if you so choose. For instance, you could give your spouse the power to decide where you live and your son the responsibility of handling your finances.

While you still have control over your faculties, you should refrain from granting a family member authority over your possessions. Many states recognize springing powers of attorney to address these issues. The granting of these rights is conditional on other circumstances, such as a medically-verified incapacity or placement in a nursing facility.

What if springing powers aren’t legal in your state? A durable power of attorney plus a letter detailing when the power will take effect can have the same effect. The attorney can hold both forms of identification until you are needed.

Types of Power of Attorney

Financial and healthcare power of attorney documents are the two most common. The difference between both is extensively discussed below.

Financial Power of Attorney

Suppose you need help understanding or making decisions regarding your business and financial affairs. In that case, the individual you assign can handle matters such as signing checks, submitting tax returns, mailing and depositing Social Security checks, and maintaining investment accounts. To the degree that the agreement specifies the power of attorney obligation, the agent must carry out your intentions to the best of their ability. A financial power of authority grants the designee broad authority over your financial affairs, including managing the account’s funds, writing cheques on your behalf, and changing the account’s beneficiary designations.

Healthcare Power of Attorney (HCPOA)

Suppose you wish to delegate a decision-making attorney over medical treatment to another person. In that case, the assigned individual can execute a healthcare power of attorney (HCPOA). This document is a healthcare proxy and details your agreement to grant the personal power of attorney for medical purposes.

Contact Information:
Email: [email protected]
Phone: 2129517376

Could You Benefit From Semi-Retirement?

March 9, 2023 /by jeff boettcher

In recent years, the idea of “semi-retirement” has been added to the classic notion of “retirement” as the point at which people quit working altogether. People typically work fewer hours during this transition phase to full retirement, either at their previous jobs or in a new part-time position.

The benefits of semi-retirement include increased income, engagement, satisfaction, and even greater physical and mental health. This article examines everything you should know about semi-retirement.

Semi-Retirement Foundations and History

A person enters semi-retirement when they quit working full-time in their prior career and start working fewer hours or, possibly, putting regular workweeks at another money-earning endeavor they find more fulfilling and delightful.

Deciding to semi-retire is different from maintaining a regular work schedule as long as possible, even after retirement age.

The federal policy that reduced Social Security benefits when recipients made money from working discouraged semi-retirement for a long time. But thanks to revisions to the earnings limit regulation, social security recipients can earn any amount of money from working after reaching full retirement age without reducing their benefits. This has made semi-retirement more appealing.

According to the 2022 Transamerica Retirement Survey, over six in ten (58%) workers now intend to continue working at least part-time in retirement.

Forms of Semi-Retirement

Working fewer hours for your current employer, taking on new part-time employment, or launching a business are all semi-retirement options. According to an Express Employment Professionals survey, 79% of respondents chose semi-retirement to convert to a flexible work schedule. In comparison, 59% want to work fewer hours for the same employer or become consultants.

Each of these choices has its advantages and disadvantages. For example, a person is likely to make more money per hour working for the same employer while working fewer hours remotely or on a flexible schedule. But only 21% of businesses, as per the Express Employment survey, provide semi-retirement employment opportunities.

Similarly, part-time or seasonal employment might provide freedom and the chance to pursue a personal passion or learn a new skill. However, part-time employment may not offer any benefits at all and is likely to pay less.

Also, starting a business can be rewarding, but the hours may be challenging, and getting a new firm off the ground may be challenging without incurring debt. Another option is consulting, which offers the chance to make more money per hour without needing to invest in a firm.

Pros of Semi-Retirement

One of the biggest advantages of semi-retirement is the ability to earn more money. Without a pension or significant personal assets, retirees may be concerned that their Social Security income won’t be enough to support a comfortable standard of living.

Semi-retirement is a valuable source of supplementary income to aid with living expenses. Retirees with some personal assets and a pension might postpone claiming Social Security payments while in semi-retirement, increasing their monthly benefit.

Social Security is still the most significant retirement benefit for most Americans. If you wait until you are 70 years old to start receiving Social Security benefits in 2022, the maximum payout is $4,194 per month or $50,328 per year. You can enhance your maximum benefit by working more and earning more money.

People who continue to work after retirement would also benefit from social interaction that might otherwise be absent if they stopped working altogether. This kind of activity can benefit physical and mental health more than total leisure.

Cons of Semi-Retirement

Choosing semi-retirement can result in having a much lower income for those who retire before being eligible for Social Security or pensions. This represents the biggest barrier to semi-retirement for many workers.

Another potential difficulty in semi-retirement is health insurance. Moving to part-time employment, whether at the same firm or a different one, a person who previously had health insurance via their employer risks losing that benefit.

Suppose the individual isn’t old enough to be eligible for Medicare at age 65. In that case, they will probably have to pay for COBRA benefits or insurance they acquire through the Health Insurance Marketplace established by the Affordable Care Act or on the open market.

Conclusion

Semi-retirement entails working fewer hours remotely or with a more flexible schedule during the transition to full retirement. Semi-retirement can give you more leisure time than you had during most of your working years while still bringing value-added income, satisfaction, and involvement. However, finding health insurance and an employer supporting semi-retirement can be challenging.

Contact Information:
Email: [email protected]
Phone: 8007794183

Will you use your retirement funds, or will you leave them uninvested?

March 9, 2023 /by george learned

What to do with one’s laboriously accumulated retirement assets is a significant financial concern for retirees. For instance, some people find it more rewarding to pay for their grandkids’ education than to buy a second home for themselves. It’s OK if the reverse is true.

Experts say it’s crucial to understand what each individual wants to do with their nest egg. Do you want to spend all their money on things that make you happy, or would it be more satisfying to leave your loved ones an inheritance? Read on for additional thoughts that might help you choose the best action if you’re struggling with the same issue.

The justification for depleting your fortune

On the one hand, you can enter retirement with the primary objective of maintaining the standard of living you’ve worked so hard to achieve. You may have pictured your latter years as devoted to pursuing a hobby, traveling, buying a vacation home, or fulfilling another retirement ambition.

If you fit this description, be aware that these plans probably have a cost. Retirees must be ready for a retirement that might extend for several decades, given the reality of increased life spans. This implies that in addition to standard costs, which will probably increase due to inflation, your funds will also likely need to account for the possibility of health and long-term care needs. Make sure you allow enough for these needs before selecting whether or how much money to spend down or leave behind.

Why it’s important to leave a legacy

On the other hand, it’s crucial to start finalizing inheritance arrangements early if your main aim in retirement is to leave a legacy for your loved ones. Remember that your legacy comprises what you give and cherish now and what you intend to leave as an inheritance after you pass away.

Maybe you want to lend a helping hand to your kids and grandkids. Your contribution might go a long way toward assisting them in reaching critical financial milestones like earning a college degree, buying a home, or paying off a mortgage.

Or you could donate money to a foundation, charity, or school that shares your ideals. Consider donating to the causes that matter most or have significantly influenced your life.

Create or revise your estate plan to reflect your current preferences, whether you want to leave gifts to loved ones, charitable organizations, or both. Written instructions (such as a will or trust) and current beneficiary designations on your accounts should be part of your strategy.

Achieving a balance

Spending your money and leaving an inheritance are excellent choices. However, many retirees want to achieve both. If this describes you as well, realize that a compromise is achievable. Since everyone has a different vision for retirement, you should also have a financial strategy for achieving it.

You must discuss with your spouse or partner what brings you the greatest joy as you consider your alternatives for using your savings. Inform your family of your plans once you are in alignment. Estate planning may be challenging to discuss with them, no matter how much or how little money you want to leave to loved ones. Having the discussion might ease the future strain and give your kids assurance about what to anticipate.

Retirement assets typically transfer without going through probate directly to the rightful recipients. The drawback is that these assets may be subject to federal and state estate taxes and frequent federal and state income taxation. Plan carefully, take advantage of the deduction for estate taxes on these assets and understand the required minimum distribution (RMD) requirements to help lessen the impact.

Consult a financial advisor and estate lawyer for a second view on how to realize your retirement ideal. These experts may help you discover your own happy medium between spending and leaving an inheritance with your assets by giving guidance and encouragement.

Contact Information:
Email: [email protected]
Phone: 3037587400

Four Social Security misconceptions that might jeopardize your retirement

March 9, 2023 /by george learned

Today, Social Security is a crucial source of retirement income for millions of seniors. It serves as their sole source for many.

You wouldn’t want to land in that boat in a perfect world. You can face years of financial hardship if you retire on Social Security alone. Planning to retire with various income streams at your disposal, such as money in a savings plan, multiple investments, and even part-time employment, if that makes sense for you, is a much better bet.

In any case, there’s a considerable possibility that Social Security will be a significant part of your retirement income. Therefore, it’s crucial to file for benefits deliberately. But if you believe these four falsehoods, you can find yourself claiming benefits when you shouldn’t and shorting yourself.

1. Social Security will be abolished shortly.

Social Security is experiencing a funding gap. It anticipates owing more in benefits than it receives in the upcoming years, partly due to the projected mass retirement of baby boomers.

Now that trust funds are available, Social Security can use them to fill the deficit. However, benefit reductions could be considered after the trust assets run out, which could happen in less than ten years.

Benefit reductions, however, are very different from Social Security ceasing to exist. It’s crucial to recognize this distinction.

It’s common knowledge that it’s wise to apply for benefits as soon as possible to receive payments before Social Security runs out of money entirely. But if you take your benefits early, all you’ll accomplish is eliminate a significant source of retirement income for the rest of your life, leaving you with even less cash in the face of benefit reductions.

2. You should apply for Social Security at age 65.

Medicare eligibility starts at age 65. As a result, you’ll frequently hear that you must enroll in Social Security concurrently. However, you are under no obligation to do that.

Even though Medicare eligibility may begin at age 65, depending on your birth year, you may not be eligible for your full monthly Social Security income until you are 66, 67, or 66 and a specific number of months old. Therefore, if you begin collecting Social Security at age 65, you will always get a reduced payment.

Your Social Security payments will be used to cover your monthly Medicare Part B premiums if enrolled in both Social Security and Medicare simultaneously. It’s also okay if you’re not receiving benefits. Medicare will find a way to get your money if you apply for it and start getting health insurance without Social Security.

3. You can get Social Security payments tax-free.

There’s a significant possibility you won’t have to pay taxes on your benefits if Social Security is your primary source of retirement income. If not, taxes may apply, depending on the total amount of your retirement income.

That includes federal taxes. Some states also tax the income received from Social Security.

Knowing in advance that your retirement benefits can be taxed will be crucial since it may affect how you file. For instance, you can enroll later in a larger benefit to compensate for the money you lost to taxes.

4. Your marital status matters.

Your marital status must be a significant consideration in deciding when to start receiving benefits.

If you’re married and begin receiving benefits sooner, your spouse may not be eligible for spousal or survivor benefits.

According to Jones, delaying benefits claims until age 70 might result in a boost in payments for surviving spouses. He says “one partner is “far more likely to survive for a significant period without the other.”

If you are of full retirement age and were born before January 2, 1954, you can take a spousal benefit while letting your benefits accrue. You can afterward turn it off for your own higher advantage.

However, due to modifications Congress made to the Social Security laws, anyone born after that date can no longer adopt that technique.

Clarify your facts.

There is a ton of false information about Social Security out there. Spend some time reading up on the program so you can get your facts straight if you want to avoid making what may wind up being a significant filing error.

Contact Information:
Email: [email protected]
Phone: 3037587400

The best times to save and take money out of retirement

March 8, 2023 /by aaron steele

Preparing for retirement has its sweet spots. You may reach the ideal retirement age while you are still working. You’ve reached a point in your job and financial life where you can afford to put more money away for retirement. However, you have several years of development left (you hope) before you have to start taking money out of your retirement funds.

At this point, you should save as much as you can and rely on market forces to position you favorably in the future. This period might appear between the ages of 45 and 50 when you must take a distribution from your retirement funds (likely between 57 and 65).

However, there is another sweet spot where you can adjust your retirement assets without being constrained by IRS regulations, possibly after you retire. The early withdrawal penalty is waived on all retirement funds once you reach the age of 59 1/2. You are free from the 10% early withdrawal penalty on money taken from your TSP at that time if you leave federal employment in the year you attain age 55 or later (50 for special category workers and even sooner for retired public safety personnel).

You can withdraw money from your Thrift Savings Plan without incurring penalties known as “in-service withdrawals” if you continue to work after those ages and are still employed at age 59 1/2. The early withdrawal penalty for IRAs is waived until age 59 1/2, whether or not you are employed. You will remain in this “golden place” until you turn 73 and have to start taking mandatory minimum distributions.

What can you do in this sweet spot?

Retirement savings can be moved around and redirected without paying additional taxes. You can transfer funds from a standard IRA to a Roth IRA. The converted money will still be subject to tax, but there won’t be a 10% penalty added on top of that. Conversion can be something you want to do to ensure you have streams of tax-free income in retirement.

When converting, you need to pay attention to your tax bracket in the year that you convert to avoid moving up into a higher tax bracket or incurring one of the “stealth taxes,” such as increased Medicare Part B premiums. Of course, you won’t have to worry about Medicare premiums if you are under 65 at the time of the switch since you are not yet eligible for Medicare.

You must begin drawing distributions from all retirement accounts at the age of 73, except for Roth IRAs, so you should transfer as much money as you can into Roths before then.

Take advantage of it when you reach the sweet spot. Put as much money as possible in your TSP and other tax-advantaged retirement accounts if you still need to catch up to the sweet spot.

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.

President Biden Signed Special Retirement and Disaster Planning Bill

February 27, 2023 /by marvin dutton

A bill requiring federal agencies to consider catastrophe resilience when investing in and managing real estate and other assets has been signed into law by President Biden. It mandates that the Office of Management and Budget (OMB) issue guidance on how to incorporate natural disaster resilience into those decisions and collaborate with the Government Accountability Office (GAO) and the Federal Emergency Management Agency (FEMA) to assist agencies in identifying potential gaps in disaster resilience prevention efforts and report to Congress on implementation.

Biden also signed a bill allowing federal employees who are first responders or otherwise eligible for special retirement provisions to continue receiving those benefits even if they are transferred to a different federal position outside the system after returning to work following a work-related injury or illness. That way, individuals can keep the advantages of earlier retirement age, more retirement benefits, and the higher contributions they’ve made to their retirement plan.

The Senate has now joined the House in passing HR-7535, which mandates an assessment of agency IT systems’ susceptibility to quantum computing technology with the potential to overcome current encryption protections, the establishment of standards for making such systems resistant, and the monitoring of agencies’ compliance with those standards.

The Senate also approved and forwarded to the House Bill S-4337, which would permit federal agencies to hire the spouses of active-duty military personnel, handicapped military personnel, and deceased military personnel without subjecting them to a competitive hiring procedure.

Contact Information:
Email: [email protected]
Phone: 2129517376

What is the cause of the great retirement?

February 26, 2023 /by rick viader

Since the pandemic, many of us have been forced to leave our jobs due to prolonged COVID-19 illnesses, a failing National Health Service, and declining mental health. At least, that’s what the debate suggests.

One of the most widely discussed societal trends of 2022 has been the “Great Retirement.” A shocking number of retirees have left the labor force since the outbreak. According to the latest government statistics, the number of “economically inactive” (i.e., persons who are neither working nor actively seeking employment) Americans in the United States has increased by roughly 300,000. The United Kingdom also appears to be at odds with the rest of Europe, where the number of elderly workers has recently increased rather than decreased.

There has been a widespread acceptance of ill health as the primary cause of retirees’ inability to work for some time.

But we never got the impression that this was the complete story. Perhaps a substantial portion of the elderly workforce decided to retire early, cashing in on the security-related and housing-market-related savings they had amassed. Why is the United Kingdom doing so much worse than the rest of Europe?

To get to the bottom of this, we polled 3,000 over-fifties in the US, the UK, and Germany, as well as a booster sample of 1,500 persons between the ages of 50 and 64 who are now unemployed to understand better the causes of the migration of older workers from the labor field.

Outcome of the Analysis

First, contrary to widespread belief in the media, declining health is not the primary factor leading to retirement among the nation’s senior workforce. Most British citizens aged 50-64 who have stopped working since 2019 cite early retirement or family duties as their primary reasons for being economically inactive, while only 16% cite long-term illness or disability.

Our poll found that economically inactive people between the ages of 50 and 64 in the UK were more likely to say the pandemic had improved their financial situation (18%) than their counterparts in the United States (8%) and Germany (4%).

The ability to retire early is directly tied to the homeowner’s level of financial security, with both homeownership and housing wealth playing significant roles.

Additionally, the vast majority of economically inactive Britons over 50 (80% of those in their late fifties/early sixties) have no desire to get back into the workforce.

In line with our polling, this suggests that the pandemic had a more significant impact on the British population, leading a larger share of those aged 50 and up to review their priorities and reduce their time at the office. Compared to 74% in the US and 73% in Germany, 58% of over-fifties in the UK express job satisfaction.

Because so many people appear to have voluntarily retired early, our data reveal a more complicated policy dilemma than if health were the primary issue. Think about the following implications for the future:

Health may not initially appear to play a significant role in this narrative, but it does. According to our research of longitudinal data, the number of sick and disabled older Britons returning to work has decreased since before the pandemic. Our survey indicated that Brits are more likely to blame the NHS for declining healthcare access after the pandemic than Germans or Americans. There is an immediate need to improve our healthcare system.

Second, business owners: many retirees dislike working for you. Some people may be pushed over the edge and encouraged to retire early due to long commutes, difficulties managing work and caring obligations, a lack of career advancement opportunities, and ageism in the workplace. People over age 50 may feel more fulfilled in their careers if there were more opportunities for flexible scheduling, telecommuting, and caregiving leave. Sixteen percent of non-workaholics between the ages of 50 and 64 in the United Kingdom indicated they might change their minds about going back to the office if they had the option to do it from home some or all of the time. However, 14% indicated that if they could have more flexible hours, it would make them think again.

Ultimately, the government may need to be patient. As the cost of utilities and groceries continues to rise, some retirees may decide to quit the labor market before they had planned. By 2023, as people’s savings dwindle, the Great Retirement will have turned into the Great Unretirement.

Contact Information:
Email: [email protected]
Phone: 9568933225

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.

3 Dividend Stocks to Max Your Retirement Income

February 25, 2023 /by mickey elfenbein

The fear of running out of money over death is greater among older Americans, which is an interesting truth.

And retirees are right to worry about how to make their money last. Since people are living longer, their money needs to last for a longer time. Adding insult to injury, the money earned by tried-and-true retirement planning strategies may not pay expenses today. That means seniors must take money out of their savings to pay for living costs.

The way your parents saved for retirement won’t work for you now.

In the late 1990s, 10-year Treasury bonds had a yield of about 6.50%, which meant they were a reliable source of income. But the yield today is much lower and probably not a good way for most people to fund their retirements.

Even though this yield drop may not seem like much, it adds up: if you invest $1 million in 10-year Treasuries, the rate drop means your return will be more than $1 million less.

For retirees, the declining bond rates are bad news. Social Security‘s future also doesn’t appear promising. Benefits from Social Security are still being paid today and shortly, but it’s anticipated that the money will run out as early as 2035.

There may need to be more than bonds and Social Security, which have been the main sources of retirement income for a long time, to meet the needs of retirees now and in the future. What if there was another constant and reliable way to earn money in retirement?

Invest in Dividend Stocks

Dividend-paying stocks are an excellent method to replace low-risk, low-yielding Treasury bonds and fixed-income investments with reliable, consistent income streams. High-quality, low-risk businesses typically issue these stocks.

Look for stocks that have been paying steady dividends for years (or decades) and have never cut their dividends, even when the economy was bad.

Searching for firms with a 3% dividend yield on average and solid annual dividend increase is one technique to uncover strong options. Many stock dividends go up over time, which helps to make up for the effects of inflation.

Here are three stocks that pay dividends that retirees might want to add to their nest egg portfolio.

BP (BP): The current dividend yield for BP (BP) is 4.24%, and it is paid out at $0.36 per share. The yield on the S&P 500 is 1.64%, and the yield on the Oil and Gas – Integrated – International industry is 2.52%. The company’s dividends grew by 10.15% annually in the past year.

Cadence (CADE): The cadence stock is currently giving out a dividend of $0.22 per share. Since the Banks-Southeast sector and the S&P 500 average only a 1.9% dividend yield, this company’s payout is 3.07%. Over the past year, the company’s dividends grew by 10% annually.

HAFC: With a dividend yield of 3.86% and a monthly payment of $0.25 per share, Hanmi Financial (HAFC) is an excellent investment. Compared to the present yield of the S&P 500 Index and the yield of the Banks-West industry, which is 2.31%, there is a big gap between these two. In the past year, the company’s dividends grew by 108.33% annually.

But aren’t stocks, in general, riskier than bonds?

In general, that is correct. But stocks are a broad category, and you can reduce the risks by choosing high-quality dividend stocks. These stocks can give you regular, predictable income and make your portfolio less volatile than the stock market.

The fact that many businesses, especially blue-chip stocks, gradually increase their dividends is a benefit of including dividend stocks in your retirement portfolio. The impact of inflation on your projected retirement income is mitigated.

Do you think about mutual funds or ETFs that focus on dividends? Keep an eye out for fees.

If you’re thinking, “I want to put money into an ETF or mutual fund that focuses on dividends,” do your research. It’s crucial to be aware of the high costs associated with some mutual funds and niche ETFs, which may lower your dividend profits or income and lessen the overall effectiveness of this investment plan. If you still want to invest in funds, do much research to find the best dividend funds with the lowest fees.

Contact Information:
Email: [email protected]
Phone: 6122163911

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

TSP G Fund: What You Should Know Before Investing

February 23, 2023 /by bill hoff

OK, so now it’s official. The G Fund has become the largest of the TSP’s five main funds. Given that the C Fund, the second-largest fund, has approximately $200 billion invested, this is an impressive feat.

While we await final figures from the most recent TSP Investment board meeting, the G Fund is estimated to be worth between $215 and $220 billion, given current market conditions.

So, How Does This Affect You?

What made this happen? The G Fund has risen to the top for a couple of reasons.

The C, S, I, and F Funds all had losses in 2022, which should be noted since other funds are also struggling compared to the G Fund, which benefits from automatic government backing. To rephrase, the G Fund must be up if every other fund is down. Since the G Fund’s size has remained constant regardless of market fluctuations, the other funds’ assets have fluctuated.

Two, many passengers are abandoning the ship. Due to the recent market uncertainty, investors are fleeing the riskier C, S, and I stock funds in favor of the more conservative G Fund. As a result, the value of the other funds is decreasing not only due to market performance but also because individual federal employees are withdrawing their money.

Most government employees, however, are blissfully ignorant that this is the worst time ever to access the G Fund.

A Window of Great Opportunity Presents Itself

There is usually positive and negative market news. The unfortunate news is that it hurts to see account balances decline.

Good news: you have a once-in-a-lifetime opportunity to guarantee your financial stability. You can save substantially by investing while the market is down. Keep it in mind. With a 20% drop in value since January 2022, your TSP contribution can now buy a much larger percentage of the C Fund.

While at work, you might take advantage of the down market by stocking up on bargains to sell at a later profit.

By investing heavily in the G Fund, you are doing the opposite, buying high and selling low. Your retirement savings could suffer in the long run due to this approach. However, it is essential to have professional advice before taking any action. Inquiring with a professional should result in useful recommendations.

Getting Ready for or Currently Enjoying Retirement?

What if you’re approaching retirement and don’t have much time to “buy low” by contributing to your TSP?

For individuals either nearing or already in retirement, it is crucial to have an investing plan to help you purchase low and sell high for the rest of your life. Also, take expert advice into consideration

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.

3 Strategies You Should Know for Early Retirement

February 17, 2023 /by mark heinrich

A multitude of novel approaches have been proposed by advocates of the “financial independence, retire early” (or “FIRE”) movement. The FIRE group has some great ideas, but you need to be on track to retire at age 40 to benefit from them.

If you want to boost your retirement funds, here are three tried-and-true FIRE tactics.

1. Your HSA Has the Potential to Become a Powerful Retirement Account

A health savings account (HSA) is one of the most potent retirement accounts, and you can open one if your health insurance plan supports them.

To help those with high-deductible health plans offset the costs of healthcare expenses, the HSA was established. Your HSA contributions are not taxed, nor are any withdrawals you make to cover qualified medical expenses.

But many who follow the FIRE philosophy instead save and invest for their golden years. Meanwhile, they use other cash to cover necessary medical care and save relevant receipts. To make a withdrawal from their HSA, individuals provide the relevant receipts.

The health savings account also has a favorable tax treatment. You won’t have to pay payroll taxes on any money you contribute straight from your paycheck.

Beginning penalty-free withdrawals at age 65 is possible if you do not have significant medical costs. Suppose the funds are not used for necessary living expenditures. (I’m not sure how this last sentence fits in.)

2. Pay no Taxes on Your Capital Gains

You undoubtedly already know that a lower tax rate applies to long-term capital gains. Generally, investors will be subject to a 15% tax on any profits made on top of their initial investment. The FIRE community, however, takes full advantage of the fact that there is a tax bracket of 0% on capital gains.

Suppose your taxable income is less than $41,675 (single filers) or $83,350 (married filing jointly). In that case, you qualify for the 0% capital gains tax bracket. The federal government does not tax capital gains if your income falls below the specified thresholds.

To take advantage of the 0% capital gains tax band, you can leave your investment alone and reap the benefits afterward. You can realize your capital gains from selling stocks (or another asset) and promptly reinvest in them. A taxable event has occurred, but there will be no tax due. The final effect is a higher cost basis for your investment, guaranteeing that your profits will never be subject to taxation. The process is known as “tax-gain harvesting.”

Tax-gain harvesting is most advantageous in low-income years. Most people do this before they start getting Social Security or have to start withdrawing money from their IRAs.

3. Unlock the Roth IRA Mega-Backdoor

A Roth IRA is an excellent retirement savings option for those with substantial income. But you may want to investigate if you can access the mega-backdoor Roth IRA, which might permit you to contribute tens of thousands more to your account annually.

You can access the mega-backdoor Roth through your employer’s 401(k) account. You can access this tactic if your plan allows for after-tax contributions outside the Roth IRA and withdrawals while you are still actively employed.

How it Works

A 401(k) plan allows for a maximum contribution amount. First, the amount of money you may save by avoiding taxes is limited. That’s $27,000 if you’re age 50 or older in 2022 or $20,500 for 2022.

Secondly, there is a cap on how much money may be put into the plan under your name. That includes your pretax contributions, your employer’s matching contributions, and any additional posttax contributions that aren’t Roth. For 2022, the maximum is $61,000 (or $67,500 if you’re age 50 or older).

Total contributions would be $26,000 if you contributed the maximum allowable amount to tax-deferred accounts and your employer also contributed the maximum allowable amount ($5,500). That allows room for an additional $35,000 in after-tax contributions.

If your plan permits, you may transfer the $35,000 to a Roth IRA or other approved Roth investment vehicle. You can use the mega-backdoor Roth to put more money into tax-deferred accounts.

You can increase your retirement savings and decrease your tax liability by adopting some of the same practices as the FIRE group. You should respect the innovative strategies put out by those who have chosen the FIRE path, even if you aim to work until the traditional retirement age.

Contact Information:
Email: [email protected]
Phone: 9187441333

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/

4 Social Security Benefits for Seniors

February 17, 2023 /by mark heinrich

Millions of retirees have benefited from Social Security retirement benefits, and many workers eagerly await receiving monthly payments from the Social Security Administration.

While the retirement system is widely discussed and expected, there are other ways senior citizens in the United States can support themselves. Here are four different payment options that may come in handy in your golden years.

1. Survivor Benefits

Survivors’ benefits often provide for those left behind when a loved one passes away. These payments can be received earlier in life than retirement payments, which is especially helpful if you’re taking care of a minor child from a previous relationship. Suppose you and your spouse were married for at least ten years before the death of either party. In that case, you might be eligible for survivor benefits. If your spouse is qualified for these benefits, you are too, even if you have never worked a day.

Seniors living on a fixed income may profit greatly from survivor benefits. Benefits like this are crucial if the higher-earning spouse passes away first, as they allow the lower-earning spouse to continue getting the larger of the two Social Security checks received before the death.

2. Retirement Benefits

With Social Security, you get what you pay into the system. Your benefits are determined by your work history, with an average (inflation-adjusted) pay taken from the 35 highest-earning years of your employment.

The age you are when you begin receiving benefits is also a factor in determining your benefit amount. Although you can start them as early as age 62, you will receive the basic benefit once you reach full retirement age (FRA). Depending on your birth year, the official retirement age ranges from 66 years and four months to 67 years and four months. Delaying benefit receipts past your FRA can help you improve your retirement income, thanks to delayed retirement credits.

3. Supplemental Security Income (SSI)

Low-income seniors and those with disabilities can apply for and receive Supplemental Security Income (SSI) benefits. These payments might be made in addition to your Social Security retirement payout. If your income exceeds the relevant threshold, your benefits can be reduced.

4. Spousal Benefits

Seniors might receive retirement benefits based on their spouse’s employment record if they qualify for spousal benefits. You can file for them if you are still married or divorced for at least ten years.

At full retirement age, a spouse can get spousal benefits worth up to half the primary earner’s benefit amount. Your benefit will be reduced if you receive them before you reach full retirement age. You can start receiving them as early as age 62.

Spend some time familiarizing yourself with the various Social Security benefits available. In retirement, you can maximize your income by planning.

Contact Information:
Email: [email protected]
Phone: 9187441333

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 FEHB Functions as a Medicare Supplement for persons with both

February 15, 2023 /by marvin dutton

It is often not essential for those who maintain their Federal Employees Health Benefits program coverage into retirement to buy a Medicare supplemental insurance (Medigap) policy, as most people do. This is because FEHB serves a similar purpose. In other words, Medicare typically pays benefits first, and any outstanding balances and medical procedures not covered by Medicare are then forwarded to the FEHB carrier, who then pays in accordance with the plan’s provisions.

However, some retirees cannot continue FEHB or want to discontinue it because they believe that doing so will require them to pay for coverage they can only receive once. In these cases, they rely on Medicare instead. They occasionally purchase a Medigap plan, a type of private insurance intended to help cover Medicare cost-sharing requirements and other coverage gaps. There is conventional Medigap insurance, and each one provides a unique set of advantages.

The Medigap open enrollment period is the ideal time to get insurance. If you are 65 or older, you have the right to purchase the Medigap coverage of your choice for six months from the day you initially enroll in Medicare Part B.

If you get coverage during this time, your application will not be denied, or your rates won’t be increased due to bad health. You might not be able to buy the coverage of your choosing when the open enrollment period for Medigap expires. You may have to take the Medigap plan your insurance provider is willing to provide.

Your Medigap open enrollment period starts when you turn 65 if you have Medicare Part B but are under 65. Several states do, however, mandate at least a brief open enrollment period for Medicare recipients under 65.

Your state’s health insurance support program can answer questions concerning Medicare and other health insurance. The services are free. You can seek help to know whether you require additional insurance and, if so, what sort and how much insurance to buy.

You can also learn more about Medicare SELECT, a different sort of Medicare supplementary health insurance offered by insurance companies and HMOs across the majority of the nation, via your state assistance program.

Nearly all aspects of Medicare SELECT and traditional Medigap insurance are the same. The distinction is that, unless there is an emergency, you must use a specific hospital or doctor that each insurance has designated to be qualified for full benefits. Medicare SELECT plans often have lower rates than standard Medigap policies due to this criterion.

Contact Information:
Email: [email protected]
Phone: 2129517376

Sell Your Life Insurance Policy

February 14, 2023 /by joe carreno

Life insurance is unnecessary since it provides little value while the insured is alive. Since a beneficiary does not necessarily require payment after death to prevent financial hardship, people who own their houses and have grown children or those with limited assets and no dependents may feel this way. Sell your life insurance coverage if you no longer need it.

Liquidating your insurance for a cash settlement might free up funds for other needs and reduce monthly premium payments. Consider numerous variables to receive the most excellent price when selling your insurance.

Sell life insurance

Selling your life insurance policy for a lump sum is called a life settlement. Investors buy life insurance plans for their portfolios.

Secondary market investors prefer sellers over 65 with short life expectancies. Investors earn the most from those plans since the buyer receives the death benefit after death.

Naturally, investors choose high-value plans. The policy’s value and life insurance company issuer rating of “A” is essential. Investors may also seek universal life plans with cheap or flexible premiums to minimize premiums. If you have another policy, your policy may sell for less.

Find a broker or life insurance settlement firm to sell your policy. They can assist you in finding a buyer as the intermediary. Keep in mind that brokers and compensation businesses charge fees, which reduces the selling price.

5 Life Insurance Selling Tips

Selling life insurance is complicated. It’s hard to locate an investor who’ll make a fair offer. However, you may optimize payment when:

1. Learn the method

Selling your life insurance policy is difficult, so it helps to know how it works and what to expect before you start.

Check your policy type, coverage, and cash value. Check your state’s life insurance sales laws.

2. Consider an independent advisor

Have a life insurance settlement expert appraise your policy. Independent advisors can value life insurance policies. They can also propose brokers and features and fill gaps.

3. Find a reliable broker

To discover the ideal broker, interview many. How can you enhance my offers? Commission structure? Negotiable? State-licensed?

Transaction fees may quickly eat into earnings. According to specific experts, brokers can charge 30%50% of the overall insurance price or 5%15%.

4. Compare offers

Expect wide-ranging offers. People assume one or two bids are pleasant. It’s worth waiting for a decent proposal, as the best may not be the first.

5. Gather your papers

Your broker will show customers your life insurance policy. Buyers will also want to view your medical records to evaluate your coverage.

Why sell my life insurance?

Only in particular financial conditions should you sell your life insurance coverage.

Selling your life insurance policy might ease the monthly payment and put some money back in your pocket if you can no longer afford it. Also,

A life insurance settlement may be preferable to canceling or surrendering your policy because it usually pays out more.
If you need to fund a large unexpected bill, consider selling your life insurance policy.
You can sell your life insurance policy if you have a terminal disease and need to pay for treatment.

If you have a permanent life insurance policy, you can borrow against its cash value to fund medical expenditures; therefore, selling your policy is usually an alternative. You can use an accelerated death benefit to pay for therapy while alive.

If the payout or absence of premium payments might benefit you immediately and you do not need to leave a death benefit to dependents, selling your life insurance policy may be an excellent decision.

What To Do Aside from Selling Your Life Insurance

Life insurance policies are often sold for cash. If you need urgent money, there are various, more straightforward ways to sell your life insurance. Before selling life insurance, consider the following:

Accelerating the term: Some life insurance policies allow you to collect while alive.

Loaning against insurance cash value: Monthly interest helps you repay money borrowed against the entire value of your life insurance policy. This requires permanent life insurance.

Surrendering the policy: While it may not net you much, surrendering your life insurance policy offers you the surrender value and eliminates future premium payments.

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

Bio:
For over 30-years 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 claimsâ€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.

Tag: FERS

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