Federal Retirement Planning

Federal retirement planning starts with understanding your benefits. Once you understand your Federal benefits - the next step is to look at the bigger picture of how your benefits fit into your overall financial picture.

Your Federal benefits play an important role in your financial security in retirement.

But, if you make decisions about your Federal benefits without considering your overall financial situation - you could be doing yourself more harm than good.

And if you make choices about your financial situation without knowing all about your Federal retirement options - you may miss out on opportunities to use the unique aspects of your Federal benefit plans to your best advantage.

"Is There Someone Who Can Help Me?"

You certainly can do it on your own - but wouldn't it make sense to have a second set of eyes review your plan?

You can learn a lot about finance and retirement through books. But nothing can replace real world experience.

Look for a financial professional who has experience with Federal retirement planning. Your Federal benefits play a major part of your retirement - you want someone who knows the ins and outs of the system.

But you also want someone who can help you with your overall financial and retirement goals.

"Why Do I Need You?"

During one of my classes, a lady asked me point blank: "Why do I need you?"

She understood the basics of her benefits - but she wasn't sure why she should consider meeting with a financial planner.

Here are just a few of the questions that I help my Federal clients with:

• "How Will Taxes Affect My Retirement?"

  When we talk about taxes in my Federal retirement planning classes, I start off by asking...

  "Raise your hand - How many people think taxes will be going down in the future? How many think taxes will stay the same? And how many think that taxes will be going up?"

  While there are some folks who think that taxes will go down or stay the same - the overwhelming majority of my class attendees think that taxes will have to go up in the future.

  And I agree with them. I happen to believe that tax rates will be rising significantly in the future.

  But people tell me, "Micah - I don't need to worry about taxes in retirement because I'll be making less money than I do now."

  I disagree - because even if you will be making less in retirement - taxes can have a huge impact on your lifestyle in retirement.

  Most people end up putting the majority of their retirement money in tax-deferred accounts, like the TSP or IRA's.

  With tax-deferred accounts, you don't pay taxes on the money now - you pay taxes on the money later, when you take the money out.

  But let's go back to the question - 'Where do you think taxes are going?'. If you think taxes are going to be higher in the future - why would you put all of your retirement money into accounts that will require you to pay taxes when they will be higher?

  Why not look for some investments that will allow you to pay taxes now, when they will be lower, and avoid taxes in the future when we think they will be higher?

  If you have all your money in tax-deferred accounts, you will have very little control over your tax bill. The only choice you will have is to reduce your standard of living and take less money out.

  However, if you plan your investments wisely, you will have a very important option that most people never even think about: you will have the ability to control your taxable income.

  This is something I help my Federal employee clients with. I help my clients pay as little tax as legally possible now, and in retirement.





• "Will The Gov't Take 50% of My Estate?"

  Some people think that estate planning is only for the super-rich. They hear that you 'shouldn't worry' about estate taxes unless you have more than $3 million.

  But - did you know that the exemption drops to $1 million in 2011?

  And more people will be affected by this limit than they realize.

  Let's take an example. Say you have a husband and with a ...

  • TSP with $500,000
  • Your house is worth $300,000 and you own it free and clear
  • You have $100,000 in the bank
  • And you each have $800,000 in life insurance with your employers

  Currently, your net worth would be $900,000. This is less than the $1 million requirement in 2011 and less than the $3 million now.

  But what if you both pass away at the same time?

  Well your estate just went from $900,000 to $2.5 million. And if this happens after 2011 - you have an estate tax problem.

  Unless you've arranged things properly, the government stands to get 50% of everything over the $1 million limit. That means that $750,000 of estate taxes would be due 9 months after you pass away.

  But with some simple re-arranging, you might be able to pass the entire $2.5 million onto your spouse or heirs 100% estate tax free.

  I help my clients properly position their assets so that every penny of their estate goes where they want it to go.

"How Much Risk Do I Need to Take?"

I'm sure you've taken a risk tolerance profile that asks about how much risk you are comfortable taking.

But have you ever asked yourself how much risk do you *need* to take?

What if you're taking more risk than you should be?

Too many people chase the highest rates of return. Rates of return are important, but sometimes people forget that higher rates of return come with higher risk.

Instead of chasing a rate of return - let's look at your goals, what do you want in retirement.

Then we make your money work for you - the way you want it to.

Why take more risk if you don't have to?

I help my clients assess their financial goals and discuss how much risk they need to take in order to achieve them.

Get Personalized Recommendations

You probably know that your agency's HR department cannot give personalized recommendations. They can tell you about your benefits - but they can't tell you what is the best option for you.

And OPM will only process the paperwork they receive.

OPM is not going to tell you that if you filled out the forms differently, that you might have gotten more money.

There are so many choices and options in the Federal retirement planning - and it's crucial to make sure you've made the best choices for your personal situation.

You want to find someone who familiar with Federal retirement planning - and - someone who can help you with all the other details along the way to retirement.

I help my clients get the most out of their Federal benefits - and achieve their financial goals.

Financial Planning & Federal Benefits Expertise

They can help you with finance, investments, retirement, estate planning, tax planning and understanding how these areas affect your personal situation.

But it is rare to find a planner who knows the ins and outs of Federal retirement planning. Your financial future is too important to entrust to someone who says they can 'figure it out'.

If you're looking for a good financial planner who can help you manage your complete financial picture *and* someone who can help with Federal retirement planning - let's talk.

Just fill out the form below. Someone from our office will contact you to arrange a time for us to talk about your Federal benefits and how they fit into your overall financial picture.

I manage the personal finances for many Federal employees, and I teach classes on Federal benefits. I have the experience to help Federal Employees with Federal retirement planning.

I would be pleased to put my experience to work for you.

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