Can You Take Your FERS or CSRS Pension as a Lump Sum?
If you ever look at your paystub and wonder what “cumulative retirement” means, it refers to the total amount of contributions that you have made to either FERS or CSRS. And many might wonder, upon retirement – can’t they just take this full amount instead of receiving guaranteed monthly payments for life? Follow link to read more. https://bit.ly/3Uw5ipr
2024 TSP Contribution Limit Predicted to Increase
Recent estimates project that the 2024 TSP annual contribution limit will increase to allow federal employees to save more for retirement.
The annual contribution limit for the Thrift Savings Plan (TSP) will increase by 2.2% in 2024 according to Mercer, a benefits consulting firm that is part of Marsh McLennan.
Both estimates are based on the July CPI-U figures from the government. Click HERE to read more.
Navigating Retirement Pitfalls
Much is written about the classic financial mistakes that plague start-ups, family businesses, corporations, and charities. Some classic financial missteps have been known to plague retirees, too.
Calling them “missteps” may be a bit harsh, as not all of them represent errors in judgment. Either way, becoming aware of these potential pitfalls may help you to avoid falling into them in the future.
MANAGING SOCIAL SECURITY. Social Security benefits are structured to rise about 8% for every year you delay receiving them after your full retirement age. Is waiting a few years to apply for benefits an idea you might consider? Filing for your monthly benefits before you reach your full retirement age can mean comparatively smaller monthly payments.1
MANAGING MEDICAL COSTS. One report estimates that the average couple retiring at age 65 can expect to need $315,000 to cover health care expenses during the course of their retirement, even with additional coverage such as Medicare Part D, Medigap, and dental insurance. Having a strategy can help you be better prepared for medical costs.2
UNDERSTANDING LONGEVITY. Actuaries at the Social Security Administration project that a 65-year-old man has a 34% chance and a 65-year-old woman has a 45% chance to live to age 90. The prospect of a 20- or 30-year retirement is not only reasonable, but it should be expected.3
MANAGING WITHDRAWALS. You may have heard of the “4% rule,” a guideline stating that you should take out only about 4% of your retirement savings annually. Each person’s situation is unique but having some guidelines can help you prepare.
MANAGING TAXES. Some people enter retirement with investments in both taxable and tax-advantaged accounts. Which accounts should you draw money from first? To answer the question, a qualified financial professional would need to review your financial situation so they can better understand your goals and risk tolerance.
This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your investment strategy for tax considerations.
MANAGING OTHER COSTS, LIKE COLLEGE. There is no “financial aid” program for retirement. There are no “retirement loans.” A financial professional can help you review your anticipated income and costs before you commit to a long-term strategy, and help you make a balanced decision between retirement and helping with the cost of college for your children or grandchildren.
TSP Funds Dropping in April
New records are being set by the TSP. Here is an update on TSP fund performance and some of the records cited by the TSP in its latest release.
New Records for the TSP There were several new highs for the Thrift Savings Plan (TSP) in March. The FERS participation rate is now 95.7%; the full matching rate for FERS and BRS Active Duty reached 87.6% and 86.7% respectively; and participants rolled more than six thousand checks totaling more than $282 million from other qualified plans into the TSP. Follow link to read more. https://bit.ly/4aLWMYZ
Military Families’ Financial Challenges Are Unique; These Tips Can Help
Any family can experience financial hurdles, but military families may face unique challenges that set them apart from their civilian counterparts. From being remotely stationed with limited access to good paying jobs and childcare, to frequent moves that can make establishing consistent savings habits hard, military families’ everyday realities can make financial security difficult in both the near and long-term. Follow link to learn more. https://bit.ly/49DxCur