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What is the 95% Rule for Retirement? | Smarter Feds

The 95% rule is a retirement withdrawal strategy that aims to provide a sustainable income stream while minimizing the risk of running out of money. It is based on the idea that by limiting your annual withdrawals to no more than 95% of the previous year's highest portfolio balance, you can significantly increase the likelihood of your retirement savings lasting throughout your lifetime.

How does the 95% Rule work?

The 95% rule is a relatively simple strategy to implement. Each year, you calculate your maximum withdrawal amount by multiplying the previous year's highest portfolio balance by 95%. This amount becomes your spending limit for the year. If your portfolio experiences a significant decline in value, your spending limit will also decrease, helping to protect your principal.

What are the benefits of using the 95% Rule?

The 95% rule offers several potential benefits for retirees, including:

Reduced risk of running out of money: By limiting your withdrawals based on your portfolio's performance, you can help to ensure that your savings last throughout your retirement.

Flexibility: The 95% rule allows you to adjust your spending based on your portfolio's performance, giving you more flexibility in managing your finances.

Simplicity: The 95% rule is a relatively simple strategy to understand and implement.

What are the drawbacks of using the 95% Rule?

The 95% rule also has some potential drawbacks, including:

Potential for lower spending in down markets: If your portfolio experiences a significant decline in value, your spending limit will also decrease, which could make it difficult to maintain your desired lifestyle.

May not be appropriate for all retirees: The 95% rule may not be appropriate for all retirees, such as those with significant healthcare expenses or other financial obligations.

How can the 95% Rule be used in conjunction with other retirement strategies?

The 95% rule can be used in conjunction with other retirement strategies, such as:

Diversification: By diversifying your portfolio across different asset classes, you can help to reduce your overall risk.

Tax-efficient investing: By investing in tax-advantaged accounts, such as a 401(k) or IRA, you can help to reduce your tax burden in retirement.

Social Security: Social Security can provide a valuable source of income in retirement.

Conclusion

The 95% rule is a retirement withdrawal strategy that can help to reduce your risk of running out of money. However, it is important to weigh the potential benefits and drawbacks of this strategy before implementing it. If you are considering using the 95% rule, it is important to consult with a financial advisor to Smarter Feds ensure that it is the right strategy for you.

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What Happens If You Put Too Much Into Your TSP? Smarter Feds

The Thrift Savings Plan (TSP) is a great way to save for retirement, but it's important to know the limits. If you contribute too much to your TSP, you could face some penalties.

What are the TSP contribution limits?

The TSP contribution limits for 2022 are as follows:

Elective deferrals: $20,500

Catch-up contributions: $6,500 (if you are age 50 or older)

What happens if you exceed the TSP contribution limits?

If you contribute more than the TSP contribution limits, you will be subject to a 6% excise tax on the excess amount. This tax is in addition to any income tax you may owe on the excess amount.

How can you avoid contributing too much to your TSP?

There are a few things you can do to avoid contributing too much to your TSP:

Track your contributions: Keep track of how much you have contributed to your TSP throughout the year.

Adjust your contributions: If you are close to the contribution limit, you can adjust your contributions to avoid exceeding the limit.

Talk to your HR department: If you are unsure about the TSP contribution limits, talk to your HR department. They can help you understand the limits and avoid contributing too much.

What if you already contributed too much to your TSP?

If you have already contributed too much to your TSP, you can withdraw the excess amount. However, you will be subject to the 6% excise tax on the excess amount.

Conclusion

It is important to be aware of the TSP contribution limits to avoid penalties. If you are unsure about the limits, contact Smarter Feds

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What is the Truth About Federal Employee Health Insurance After Retirement?

The Federal Employees Health Benefits Program (FEHBP) is a valuable resource for federal employees and retirees. It offers a wide range of health insurance plans to choose from, and it can help you to keep your health care costs under control.

Eligibility for FEHBP

To be eligible for FEHBP, you must be a federal employee, retiree, or a family member of a federal employee or retiree. You must also meet certain eligibility requirements, such as having at least five years of continuous service.

FEHBP Plans

There are a variety of FEHBP plans to choose from, including:

Self-only plans: These plans cover only the employee.

Self-plus-one plans: These plans cover the employee and one other person, such as a spouse or dependent.

Self-and-family plans: These plans cover the employee and all eligible family members.

FEHBP Premiums

The cost of FEHBP premiums varies depending on the plan you choose, your age, and your location. You can usually expect to pay a higher premium for a plan with more comprehensive coverage.

FEHBP Open Season

FEHBP open season is the time of year when you can enroll in or change your FEHBP coverage. Open season typically runs from November to December.

FERS Beneficiary and FEHBP

If you are a FERS beneficiary, you may be eligible for FEHBP coverage. However, the rules for FERS beneficiaries are different from the rules for federal employees and retirees.

FERS MRA and FEHBP

If you are a FERS employee who is eligible to retire under the Minimum Retirement Age (MRA) plus 10 provision, you may be able to keep your FEHBP coverage even if you have not yet reached the five-year service requirement.

Additional Resources

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fehb retiree open season

Conclusion

The FEHBP is a valuable resource for federal employees and retirees. By understanding the program and your eligibility, Smarter Feds can help you make informed decisions about your health care coverage.

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What is the COLA increase for federal retirees in 2023? | Smarter Feds

Understanding the FERS COLA

The Federal Employees Retirement System (FERS) is a retirement plan that provides benefits to federal employees. One of the benefits of FERS is the Cost-of-Living Adjustment (COLA), which helps to protect retirees from inflation.

What is a COLA?

A COLA is an annual adjustment to retirement benefits that helps to keep up with the rising cost of living. The COLA is based on the rate of inflation, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  

How does the FERS COLA work?

The FERS COLA is calculated each year based on the change in the CPI-W from the third quarter of the previous year to the third quarter of the current year. If the CPI-W increases by 2% or less, the COLA is equal to the CPI increase. If the CPI increase is more than 2% but no more than 3%, the COLA is 2%. If the CPI increase is more than 3%, the COLA is 1% less than the CPI increase.  

When do FERS retirees receive a COLA?

FERS retirees typically receive a COLA in January of each year. However, the COLA is not automatic for all FERS retirees.

Who is eligible for the FERS COLA?

Most FERS retirees are eligible for the COLA, but there are some exceptions. FERS retirees who are under the age of 62 are not eligible for the COLA, unless they meet certain conditions. These conditions include:

Being a law enforcement officer or other public safety officer

Being disabled

Being a survivor of a deceased FERS employee

How much is the FERS COLA?

The amount of the FERS COLA varies each year depending on the rate of inflation. In recent years, the COLA has ranged from 1.3% to 3.2%.

Additional Resources

federal pension cola

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federal retiree cola 2023

Conclusion

The  Smarter Feds FERS COLA is an important benefit for federal retirees. It helps to ensure that their retirement benefits keep pace with the rising cost of living. If you are a FERS retiree, it is important to understand how the COLA works and how to qualify for it.

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What Happens to Federal Sick Leave When I Retire? Smarter Feds

When you retire from federal service, your unused sick leave can be a valuable asset. It can be used to increase your annuity, which is your monthly retirement payment.

How does sick leave affect my annuity?

The amount of your annuity is based on your average salary during your three highest-earning years of service, also known as your "high-3." Your unused sick leave is added to your years of service to calculate your annuity. This means that the more sick leave you have, the higher your annuity will be.

How is sick leave converted to service credit?

For every 174 hours of unused sick leave, you will receive one month of service credit. This service credit is then added to your years of service to calculate your annuity.

Is there a limit to the amount of sick leave that can be used to increase my annuity?

Yes, there is a limit to the amount of sick leave that can be used to increase your annuity. The limit is 45 years of service. This means that even if you have more than 45 years of unused sick leave, you will only receive credit for 45 years.

What if I retire before I have 45 years of service?

If you retire before you have 45 years of service, you will only receive credit for the amount of sick leave that you have accumulated up to that point.

How can I calculate how much my sick leave will increase my annuity?

You can use the FERS sick leave chart to calculate how much your sick leave will increase your annuity. This chart is available on the Office of Personnel Management) Smarter Feds website.

What other benefits does sick leave provide?

In addition to increasing your annuity, sick leave can also be used for a variety of other purposes, such as:

Caring for a sick family member

Attending to personal medical needs

Bereavement leave

Military leave

Conclusion If you are a federal employee, it is important to understand how your sick leave can affect your retirement. By using your sick leave wisely, you can increase your annuity and ensure a more comfortable With Smarter Feds retirement. 

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How Much Do Federal Employees Get for Retirement? |Smarter Feds

Federal employees are eligible for a variety of retirement benefits, including a pension, Social Security benefits, and a Thrift Savings Plan (TSP). The amount of money a federal employee receives in retirement depends on a number of factors, including their age, years of service, and salary history.

Federal Employees Retirement System (FERS)

The Federal Employees Retirement System (FERS) is the retirement plan for most federal employees. FERS offers a three-tiered retirement system that includes:

Basic annuity: This is a monthly pension payment that is based on your years of service and your average salary during your three highest-earning years.

Social Security benefits: Federal employees are eligible for Social Security benefits, just like private-sector employees.

Thrift Savings Plan (TSP): The TSP is a tax-deferred savings plan that is similar to a 401(k) plan.

Calculating Your FERS Pension

The amount of your FERS pension is calculated based on a formula that takes into account your years of service and your average salary during your three highest-earning years. The longer you work and the higher your salary, the larger your pension will be.

Other Retirement Benefits

In addition to their FERS pension, Social Security benefits, and TSP, federal employees are also eligible for a number of other retirement benefits, including:

Health insurance: Federal employees can continue to participate in the Federal Employees Health Benefits (FEHB) program after they retire.

Life insurance: Federal employees can purchase life insurance through the Federal Employees' Group Life Insurance (FEGLI) program.

Long-term care insurance: Federal employees can purchase long-term care insurance through the Federal Long Term Care Insurance Program (FLTCIP).

How to Maximize Your Retirement Benefits

There are a number of things you can do to maximize your retirement benefits as a federal employee. These include:

Contribute to the TSP: The TSP is a great way to save for retirement. You can contribute up to $22,500 per year to the TSP in 2023.

Work as long as possible: The longer you work, the larger your pension will be.

Take advantage of other retirement benefits: Be sure to enroll in the FEHB program and consider purchasing life insurance and long-term care insurance.

Attending a Retirement Seminar

If you are a federal employee, it is a good idea to attend a retirement seminar to learn more about your retirement benefits. Retirement seminars can help you understand how your benefits are calculated and how to maximize them.

Conclusion

Federal employees are eligible for a variety of retirement benefits. By Smarter feds understanding these benefits and taking steps to maximize them, you can ensure a comfortable retirement.

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FEHB Spousal Coverage After Retirement | Smarter feds Retirement Training

The Federal Employees Health Benefits (FEHB) program is a valuable benefit for federal employees and their families. It offers a wide range of health insurance plans to choose from, and it can help to cover the costs of medical care. If you are a federal employee who is nearing retirement, it is important to understand how FEHB spousal coverage works after you retire.

Eligibility for FEHB Spousal Coverage After Retirement

To be eligible for FEHB spousal coverage after retirement, you must meet the following requirements:

You must be a federal employee who is eligible to retire on an immediate pension under the Federal Employees Retirement System (FERS) or the Civil Service Retirement System (CSRS).

You must have been continuously enrolled in an FEHB plan for the five years of service immediately before your retirement date.

Your spouse must be eligible to be covered under your FEHB plan.

How to Keep Your FEHB Coverage When You Retire

If you meet the eligibility requirements, you can continue your FEHB coverage when you retire. However, there are a few things to keep in mind:

You must pay your FEHB premiums yourself.

Your FEHB premiums will no longer be deducted from your paycheck.

You will need to make arrangements to pay your premiums directly to your insurance carrier.

You can continue to enroll in the same FEHB plan that you were enrolled in before you retired.

You can also change your FEHB plan during the annual FEHB retiree open season.

FEHB Retiree Open Season

The FEHB retiree open season is a special enrollment period that allows retirees to change their FEHB plans. The open season typically runs from November 15 to December 7 each year.

Conclusion

If you are a federal employee who is nearing retirement, it is important to understand how FEHB spousal coverage works. By Smarter Feds understanding the eligibility requirements and the enrollment process, you can ensure that you and your spouse have the health insurance coverage you need after you retire.

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The Federal Law Enforcement Officers Association (FLEOA) | Smarter Feds

The Federal Law Enforcement Officers Association (FLEOA) is a professional organization that represents the interests of federal law enforcement officers. FLEOA was founded in 1967 and is headquartered in Washington, D.C.

What does Federal Law Enforcement Officers Association do?

FLEOA is a non-profit organization that works to improve the working conditions and benefits of federal law enforcement officers. FLEOA also provides a number of services to its members, including:

Lobbying on behalf of federal law enforcement officers on Capitol Hill

Providing legal representation to federal law enforcement officers

Offering training and education programs for federal law enforcement officers

Publishing a magazine and other publications for federal law enforcement officers

Sponsoring social and networking events for federal law enforcement officers

Who can join FLEOA?

FLEOA is open to all federal law enforcement officers, including:

Special agents

Police officers

Investigators

Inspectors

Other law enforcement professionals

How to join FLEOA

To join FLEOA, you can visit the FLEOA website and fill out a membership application. You can also join FLEOA by contacting your local FLEOA chapter.

FLEOA Benefits

There are many benefits to joining FLEOA. Some of the benefits of FLEOA membership include:

Access to FLEOA's legal services

Discounts on FLEOA products and services

Subscription to FLEOA's magazine

Invitations to FLEOA events

The opportunity to network with other federal law enforcement officers

Federal Law Enforcement Officers Association Conclusion

FLEOA is a valuable resource for federal law enforcement officers. Smarter Feds helps improve the working conditions and benefits of federal law enforcement officers, and provides several services to its members. If you are a federal law enforcement officer, I encourage you to join FLEOA and become involved.

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Expanding Your Retirement Horizons: Navigating the TSP Mutual Fund Window and Contribution Limits

The Thrift Savings Plan (TSP) is a cornerstone of federal employee retirement planning. While its core funds provide a solid foundation, the TSP's introduction of the mutual fund window offers an exciting opportunity for those seeking greater investment flexibility. Coupled with understanding your maximum contribution limits, you can take a more active role in shaping your financial future.

Understanding the TSP Mutual Fund Window

The TSP mutual fund window allows eligible participants to invest a portion of their TSP savings in a wide array of mutual funds beyond the standard TSP fund options. This opens doors to:

Increased Diversification: Access to diverse investment strategies and asset classes, potentially mitigating risk.

Personalized Investing: Tailoring your portfolio to your unique risk tolerance and financial goals.

Specialized Investments: Investing in specific sectors or market segments not available in the core TSP funds.

Key Considerations:

There are eligibility requirements, including minimum account balances, and restrictions on the percentage of your TSP that can be invested in the mutual fund window.

Be aware of the fees associated with the mutual fund window, as they differ from the standard TSP fees.

Thorough research is essential when selecting mutual funds.

Maximizing Your TSP Contributions

To fully leverage the TSP, it's crucial to understand your contribution limits. Here's a breakdown:

It is important to keep up to date with the current years contribution limits.

Catch-up contributions are available for those aged 50 and older, allowing for increased savings.

It is also important to note that changes to the catch up contributions are happening, especially for those in the ages of 60 to 63.

Why This Matters

By maximizing your contributions, you take full advantage of the TSP's tax-advantaged growth.

The mutual fund window, when used strategically, can enhance your portfolio's potential returns.

Important Notes:

Always consult with a qualified financial advisor for personalized guidance.

Investment involves risk, and past performance is not indicative of future results.

Always refer to the official TSP website Smarter Feds for the most up to date information.

By understanding both the TSP mutual fund window and your contribution limits, Smarter Feds can take proactive steps toward securing a comfortable retirement.

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Understanding the FERS Annuity Supplement | Smarter Feds

The Federal Employees Retirement System (FERS) offers a comprehensive retirement package for federal employees, including a basic annuity, Social Security benefits, and the Thrift Savings Plan (TSP). However, one often-overlooked component is the FERS Annuity Supplement. This blog post will provide a concise overview of this valuable benefit.

What is the FERS Annuity Supplement?

The FERS Annuity Supplement is a monthly payment added to your basic annuity upon retirement. It's designed to provide a modest boost to your retirement income.

Eligibility Criteria:

FERS Retiree: You must be a retiree under the FERS program.

Service Requirement: You need to have at least 10 years of creditable service under FERS.

Age Requirement: You must be at least 62 years old.

Payment Amounts:

The supplement amount varies based on your years of service:

10-19 years of service: $125 per month

20-29 years of service: $250 per month

30 or more years of service: $375 per month

Receiving the Supplement:

The FERS Annuity Supplement is automatically added to your basic annuity payments upon retirement. No separate application is required.

Important Considerations:

FEHB Premiums After Retirement: Remember to factor in your FEHB (Federal Employees Health Benefits) premiums after retirement, as these costs will impact your overall retirement income.

Consult a Federal Retirement Advisor: If you have questions about the FERS Annuity Supplement or any other aspect of your retirement planning, consider consulting with a federal retirement advisor near me. They can provide personalized guidance based on your specific circumstances.

Conclusion

The FERS Annuity Supplement is a valuable component of the FERS retirement package. Smarter Feds Understanding this benefit and how it can contribute to your retirement income is crucial for effective retirement planning.

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Understanding Federal Pension COLAs: What You Need to Know | Smarter Feds

For federal retirees, staying ahead of inflation is crucial for maintaining a comfortable lifestyle. That's where the Cost of Living Adjustment (COLA) for federal pensions comes in. But how does it work, and what can you expect? This blog post breaks down the essentials of federal pension COLAs, particularly focusing on FERS (Federal Employees Retirement System) and what happens before age 62.

What is a COLA?

A COLA is an adjustment to your retirement annuity designed to offset the rising cost of goods and services. It helps your pension keep pace with inflation, ensuring your retirement income maintains its purchasing power over time.

Federal Pension COLA Basics:

The federal pension COLA is tied to the Consumer Price Index (CPI), a measure of inflation. Generally, when the CPI rises, so does the COLA. However, there are some important details to keep in mind:

Annual Adjustments: COLAs are typically applied annually, usually in January.

Calculation Method: The COLA is calculated based on the percentage change in the CPI. However, the specific calculation can vary depending on the retirement system (CSRS or FERS) and other factors.

FERS COLA Under 62: This is a key point for FERS retirees. FERS COLA under 62 is different than the COLA received after age 62. Before age 62, FERS retirees receive a smaller COLA, or in some years, no COLA at all. This is a significant consideration for those planning early retirement. It's crucial to understand the implications of this reduced COLA on your retirement income before you reach 62.

FERS COLA After 62: Once a FERS retiree reaches 62, they generally receive the same COLA as CSRS retirees. This COLA is typically more in line with the actual inflation rate.

CSRS vs. FERS:

While both CSRS (Civil Service Retirement System) and FERS retirees receive COLAs, there are some differences. Generally, CSRS COLAs are slightly more generous than FERS COLAs, especially before a FERS retiree reaches 62.

Staying Informed:

Official Resources: The best source for information on federal pension COLA and federal retiree COLA is the Office of Personnel Management (OPM) website. They publish official COLA announcements and provide detailed information about retirement benefits.

Federal Employees Retirement: Understanding the specifics of your retirement system is essential. Whether you're under CSRS or FERS, familiarize yourself with the rules and regulations governing COLAs.

Planning for Your Retirement:

When planning your retirement, it's crucial to factor in the potential impact of inflation and how COLAs can help protect your retirement income. Understanding the nuances of FERS COLA under 62 is especially important for those considering retiring before age 62. A solid financial plan should take these factors into account to ensure a secure retirement.

Key Takeaways:

COLAs are essential for maintaining your retirement income's purchasing power.

FERS COLAs are different before and after age 62.

Consult official Smarter Feds resources for the most up-to-date information.

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Navigating the TSP Mutual Fund Window: Expanding Your Retirement Investment Options | Smarter Feds

The Thrift Savings Plan (TSP) is a valuable retirement savings vehicle for federal employees. While the TSP offers a solid foundation with its core funds (G, F, C, S, and I), the introduction of the TSP mutual fund window provides greater investment flexibility for those seeking to diversify their portfolios.

What is the TSP Mutual Fund Window?

The TSP mutual fund window allows eligible participants to invest a portion of their TSP savings in a broader range of mutual funds beyond the traditional core fund options. This expanded selection can offer opportunities for:

Increased Diversification: Access to a wider array of investment strategies and asset classes, potentially reducing overall portfolio risk.

Personalized Investment Strategies: Tailor your investment approach to your individual risk tolerance, time horizon, and financial goals.

Access to Specialized Funds: Invest in specific sectors, market segments, or investment styles that may not be available through the core TSP funds.

Eligibility and Key Considerations:

Eligibility Requirements:

Minimum account balance: $40,000

Initial transfer: At least $10,000, but no more than 25% of your total TSP savings.

Ongoing limit: No more than 25% of your total TSP account balance can be invested in the mutual fund window at any given time.

Fees:

Annual administrative fee

Annual maintenance fee

Per-trade fee

Mutual fund expense ratios

Investment Selection:

Carefully research and select mutual funds based on your investment objectives, risk tolerance, and time horizon.

Consider factors like expense ratios, performance history, and investment style.

How to Use the TSP Mutual Fund Window:

Eligibility Check: Ensure you meet the eligibility requirements.

Research and Selection: Conduct thorough research on available mutual funds. Utilize the TSP website's search and filtering tools to find funds that align with your investment goals.

Transfer Funds: Initiate a transfer from your TSP account to the mutual fund window.

Invest in Selected Funds: Purchase shares of the chosen mutual funds within your mutual fund window account.

Monitor and Rebalance: Regularly review your investments and rebalance your portfolio as needed to maintain your desired asset allocation.

Important Notes:

Consult with a Financial Advisor: Consider consulting with a qualified financial advisor to discuss your investment goals and determine if the TSP mutual fund window is the right option for you.

Understand the Risks: Investing in the stock market involves inherent risks, including the potential for loss of principal.

Maximize Your TSP Contributions: Don't neglect maximizing your TSP max contribution within the limits allowed. The maximum TSP contribution for 2024 is $23,000, with an additional catch-up contribution of $7,500 for those aged 50 and older.

Conclusion:

The TSP mutual fund window provides a valuable enhancement to the TSP program, offering greater investment flexibility and diversification opportunities. By Smarter Feds carefully researching, selecting, and managing your investments, you can potentially improve your long-term retirement outcomes.

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The 95% Rule: A Retirement Planning Strategy | Smarter feds

The 95% rule is a retirement planning strategy that focuses on ensuring your retirement savings last throughout your entire lifespan, even if you live to be 95 years old. This approach emphasizes the importance of longevity risk and encourages retirees to plan for a longer-than-average lifespan.

How Does the 95% Rule Work?

Conservative Withdrawal Rate: The 95% rule suggests using a conservative withdrawal rate from your retirement savings. This rate is typically lower than the traditional 4% rule, which has been a popular guideline for many years.

Longevity Risk Mitigation: By planning for a longer lifespan, you reduce the risk of outliving your retirement savings. This is especially important given the increasing life expectancy of many people.

Regular Adjustments: The 95% rule often involves adjusting your withdrawal rate annually to account for inflation, investment performance, and changes in your health and life expectancy.

Benefits of the 95% Rule

Reduced Risk of Outliving Savings: By planning for a longer lifespan, you minimize the risk of running out of money in retirement.

Peace of Mind: Knowing that your retirement income is likely to be sustainable can provide significant peace of mind.

Flexibility: The 95% rule allows for adjustments to your withdrawal rate based on your individual circumstances.

Drawbacks of the 95% Rule

Lower Standard of Living: Using a lower withdrawal rate may result in a lower standard of living in retirement.

Potential for Over-Saving: If you live a shorter-than-average lifespan, you may end up with a significant amount of unused savings.

Conclusion

The 95% rule is a valuable retirement planning strategy for individuals concerned about longevity risk. By Smarter Feds incorporating this approach into your retirement plan, you can increase the likelihood of financial security throughout your golden years.

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The Federal Law Enforcement Officers Association (FLEOA) and FERS Beneficiaries | Smarter Feds

The Federal Law Enforcement Officers Association (FLEOA) is a professional organization representing federal law enforcement officers across the United States. While FLEOA primarily focuses on advocating for the rights and interests of active-duty officers, its work can indirectly impact FERS beneficiaries in several ways.

Key Areas of Impact:

FERS Legislation: FLEOA actively engages in lobbying efforts to influence legislation related to federal employee retirement benefits, including the Federal Employees Retirement System (FERS). This advocacy can lead to improvements in FERS benefits for both active and retired officers.

Survivor Benefits: FLEOA advocates for robust survivor benefits for families of fallen law enforcement officers. This includes pushing for improvements to FERS survivor annuities and other benefits that support the families of those who have made the ultimate sacrifice.

Health Benefits: FLEOA plays a role in advocating for affordable and comprehensive health insurance options for federal law enforcement officers, including those who have retired under FERS. This can indirectly benefit FERS beneficiaries by ensuring they have access to quality healthcare coverage.

Disability Benefits: FLEOA actively supports efforts to improve disability benefits for federal law enforcement officers who become disabled in the line of duty. This can have a positive impact on FERS beneficiaries who may be eligible for disability retirement benefits.

How FERS Beneficiaries Can Benefit from FLEOA:

Indirectly: FERS beneficiaries can indirectly benefit from FLEOA's advocacy efforts, as these efforts can lead to improvements in overall FERS benefits and support services.

Staying Informed: By following FLEOA's activities and publications, FERS beneficiaries can stay informed about legislative developments and other issues that may impact their retirement benefits.

Disclaimer:

It's important to note that FLEOA's primary focus is on advocating for the rights and interests of active-duty federal law enforcement officers. While their efforts can indirectly benefit FERS beneficiaries, FERS beneficiaries must consult with the appropriate agencies and resources for specific information on their benefits and entitlements.

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Maximizing Your TSP Match: A Guide for Federal Employees | Smarter Feds

The Thrift Savings Plan (TSP) is a powerful retirement savings tool specifically designed for federal employees. One of its key advantages is the generous matching contributions offered by the government. By understanding how the matching program works, you can significantly boost your retirement savings and maximize your returns.

Understanding the TSP Match

Agency Automatic (1%) Contribution: Regardless of your own contributions, the government automatically contributes 1% of your basic pay to your TSP account each pay period. This is a valuable benefit that starts from day one of your employment.

Agency Matching Contributions: The government matches your contributions up to 5% of your basic pay.

The first 3% of your contributions is matched dollar-for-dollar.

The next 2% is matched at 50 cents on the dollar.

Key Strategies to Maximize Your Match

Contribute at Least 5% of Your Pay: To receive the full government match, contribute at least 5% of your basic pay to your TSP each pay period. This ensures you receive the maximum matching contribution of 4% from the government, in addition to the automatic 1% contribution.

Consider a Gradual Increase: If you're not already contributing 5%, gradually increase your contributions over time. This allows you to adjust to the reduced take-home pay and ensures you're maximizing your match.

Utilize the Catch-Up Contribution: If you're age 50 or older, you can contribute an additional $7,500 per year to your TSP. This "catch-up" contribution allows you to significantly boost your retirement savings in the later stages of your career.

Understand the IRS Contribution Limit: Be mindful of the annual IRS contribution limit for 401(k) plans, which includes the TSP. For 2024, the limit is $22,500, with an additional $7,500 for those age 50 or older.

Additional Considerations

FERS Beneficiary: Designating a beneficiary for your TSP account is crucial. This ensures that your designated beneficiaries will receive your TSP benefits in the event of your passing.

Investment Options: Explore the different investment options within the TSP, such as the G Fund, C Fund, F Fund, I Fund, and S Fund. Choose a mix of investments that aligns with your risk tolerance and time horizon.

Conclusion

By  Smarter Feds understanding the TSP matching program and implementing the strategies outlined above, you can significantly enhance your retirement savings. Maximizing your government match is a crucial step towards achieving financial security in your retirement years.