Maximizing Your Benefits
Retirement and financial planning are important parts of your career. Your schedule is limited during work hours to dedicate time to learn about your federal benefits, review your finances, choices, and options. When it is time to make these choices, mathematical reviews should be the key process taken before going forward.
Delaying this exercise, relying on work colleagues, management or even your well-meaning friends/family to guide you may not be your best options to make financial and retirement decisions. Many of your decisions are irrevocable so proper information/education is necessary. For those individuals who wish to maximize their federal benefits as early as possible, this is the time to act.
Here are some things to consider when looking to maximize your benefits:
• Are you maximizing your retirement benefits? This could cost you thousands of dollars. Incorrect selections not only could cost you thousands of dollars but also your spouse’s eligibility for health insurance benefits. You have every right to maximize all your benefits.
• How you manage your TSP during your working years and up to retirement age is important. Are you aware of the market risk, volatility and the impacts of taxes and fees on your money? How you allocate among funds can impact your retirement depending on risk and upside of the market. Can you financially tolerate market risk on your money over time based on your age and years to retirement? How often do you review your statements? What about providing/creating principal protection for some or part of your retirement savings?
• If you are over the age of 59 1/2, you are eligible to address alternative retirement options for your TSP while still employed. Look at ways to add principal protection and risk managed solutions for your TSP.
• Your Annuity Pension Selection is another important topic to discuss. What is the best way to maximize that income and understand how best to accomplish this goal?
• FEGLI costs rise significantly as you age. Are you aware of the rising costs of your Federal Employee Group Life Insurance and how that will impact you when you retire, especially from ages 44-70 (2000% higher)? Making better choices earlier in your career can save you thousands. Various alternative options are available, including a guaranteed term offering until age 100!
• What is the maximum you should be spending in retirement to protect your investments properly?
• Federal Employees lack disability protection, having to use their sick and vacation leave and even dipping into their TSP to cover lost wages during an unforeseen short-term issue, such as pregnancy, an accident, or sickness. You now have a disability offering specifically designed for Federal Employees.
• Long-term care costs have risen significantly with Federal Employee Long-Term Care. Review this offering to find alternative benefits to serve your long-term care needs.
• Social Security is part of your retirement. How soon should one commence receiving a benefit? Find out how, when and why to help maximize your Social Security benefits. Do you understand spousal and widow’s benefits and how they may be effectively managed?
As an Investment Advisor Representative and Federal Benefits Consultant, we will prepare a complimentary, confidential, and customized Federal Employee Retirement Benefits Report with a review of the spouse’s/partner’s financial position.
Joe & Julia Valenzuela are Federal Benefits Consultants. Joe has his U.S. GSA (Government Services Administration) CAGE (Commercial and Government Agency) Code accreditation. This allows him to host federal workshops and events on federal property.
IMPORTANT: Federal Employees now have the benefit of adding a risk management tool to their Thrift Savings Plan. The TSP Optimizer is a simple, online tool designed to assist employees with the management of their Thrift Savings Plan. By helping the employee to properly allocate his/her account, the system uses their risk tolerance and long-term goals to generate a personalized portfolio and will recommend changes to manage their investment strategy based on market fluctuations. Call the Valenzuela Financial office to discuss.
