Posts tagged CSRS
7 Biggest Risks - Fed Retiree

What You Need To Be Aware of Entering Retirement

As the largest segment of the population prepares for and enters retirement, there has been an increased emphasis on researching and analyzing the unique risks retirees face.

           

            When we separate from service we transition from wealth accumulation to wealth distribution.  Dr. Pfau, one of the industry’s leading researchers states, “traditional
wealth management approaches do not sufficiently address a retiree’s needs”.  Retirees face additional risks and as such there is a dramatic difference in the decision making of someone who is saving for the distant future and someone who is relying on their nest egg today. 

Read More
Pension Max vs SSB

A Fresh Take on an Age Old Debate

                In this article, we are looking specifically at the Surviving Spouse Benefit (SSB)– a benefit available to both CSRS and FERS retirees that provides a continuation of a portion of your FERS/CSRS pension to your surviving spouse should you predecease him or her. 

The goal of the SSB is to provide income continuation to your surviving spouse in order to help them maintain the standard of living your family is currently accustomed to.Much like life insurance, the Surviving Spouse Benefit has a cost (premium) and only begins replacing income to your spouse after you pass away and full pension payments end.

Read More
FERS Stool vs FERS Recliner

Where will you sit?

Who’s heard of the FERS 3-Legged Stool before?  The 3 legs are the “foundation” of the generic FERS Retirement Plan that they preach during your initial training.  Each leg equates to one of the 3 main streams of the FERS retirement income –specifically: the FERS Pension, Social Security, and Thrift Savings Plan. In this metaphor, your career is spent on your feet and your retirement goal is to build a seat as far off of the “ground” as possible.  But keep in mind, the “seat” you build is the only place you can rest for the entirety of your retirement. 

Read More
The Decisive Decade

The 10 Year Period That Will Shape Your Retirement Lifestyle

There is a critical period in retirement planning, a span of roughly 10 years that largely determines the sustainability of your lifestyle throughout the length of your retirement.  This 10 year time frame has no set start age, like Medicare or Social Security.  It is unique to each individual’s true retirement date – the point when you finally stop trading your time for a paycheck and begin relying on your assets to ensure your lifestyle.  But the most critical 10 year period of your retirement begins well before you stop showing up to work. You may be in the most decisive decade of your retirement right now without ever having been told since there is no formal announcement.

Read More
3 P’s of Pretirement

Project, Protect, and Perfect

Pre-tirement: The 5 year period before one’s ideal retirement date.

            Pre-tirement is the phase during which we begin to adapt our views about money and investing in preparation for the transition to living on our assets rather than contributing to them.  Growing our retirement accounts (the Accumulation Phase) and spending them down safely (the Distribution Phase) are separate chapters of our lives with unique objectives and unique risks.  These phases are quite different and as such they require different approaches.  It is critical that you mentally recognize the transition from the Accumulation Phase to the Distribution Phase requires understanding a different mindset.

Read More