Posts tagged Federal Employees
Life Insurance For The Living

Part 1: Critical Illness & Terminal Illness

Let me open up with a simple question, how much of your FEGLI coverage is available for you to access while you still have a pulse?

Some of you may scoff and say, “Duh, NONE! It’s life insurance, clearly it is not meant for me!”

Now, while we are all well aware of the traditional application for life insurance… What if your life insurance could also provide coverage for you, the owner, during your lifetime?What if there was a way to access a portion of your Death Benefit in the case of a non-fatal emergency?There is! Strategies designed using Livin
g Benefits do exactly that

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Glass Half Full

A Review of Your Federal Benefits After the (Proposed) Changes

There has been a maelstrom of gloomy articles referencing the proposed changes to federal retirement benefits published lately and, while it is critical that you stay informed, it is also important to remember how many benefits you will continue to have in even the most aggressive of the budget reduction proposals.  We cannot control what happens with the budget, but we can control how we interpret and respond to the hurdles it creates… Remember, as a federal employee, you are still offered some of the best benefits on the planet – even after 2018!

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Timing the FEGLI

When It’s Best To Be Part of & To Stand Out From The Masses

When looking at the FEGLI there are 3 main factors in evaluating whether or not it is still the best option for coverage at this point in your life/career.  The first is your ability to qualify through the underwriting process for individual protection – generally determined by the combination of your age, health, and lifestyle habits (smoking, home-made-parachute skydiving etc).  The second is the time horizon for your protection needs - eventually the vast majority of Feds will be priced out of the FEGLI coverage (usually in their 50’s and 60’s).  The third factor is in determining what you want/need your life insurance to protect you from…

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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.

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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. 

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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.

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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.

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