Financial Advisor

DoWhat

Deplorable
PREMO Member
Looking for a financial advisor who has knowledge of the FERS retirement system and TSP options.
Recommendations are greatly appreciated.

Very Respectfully,
DW
 

luvmygdaughters

Well-Known Member
My daughter uses Edward Jones. She is a government employee. Not sure if thats the same thing that you're looking for. She's been with them for years.
 

lovinmaryland

Well-Known Member
Who is your insurance agent? I know some agents that are also financial advisors. Most of the time they offer their services free for clients.
 

itsbob

I bowl overhand
Looking for a financial advisor who has knowledge of the FERS retirement system and TSP options.
Recommendations are greatly appreciated.

Very Respectfully,
DW

What kind of questions??

I keep getting messages in my Facebook feed specific to TSP fund allocation. They provide information on a monthly (I think) basis as to where to move your funds to maximize your returns. They claim to have beaten EVERY TSP funds performance in the last 5 years. I keep pinging them for more information, my latest question is how would I pay for the service and how is the fee calculated??

You're a LOT older than me, so I'm not sure this is what you're looking for.
 
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DoWhat

Deplorable
PREMO Member
What kind of questions??

I keep getting messages in my Facebook feed specific to TSP fund allocation. They provide information on a monthly (I think) basis as to where to move your funds to maximize your returns. They claim to have beaten EVERY TSP funds performance in the last 5 years. I keep pinging them for more information, my latest question is how would I pay for the service and how is the fee calculated??

You're a LOT older than me, so I'm not sure this is what you're looking for.
I think your questions are more geared to a planner.
I am thinking about retiring at 56 with 36 yrs.
Questions regarding best options on TSP annuity options that would benefit the household.
One lump sum payout, partial payout? Investments with lump sum.
Pension options. Wait till 59, 60.
Annuity supplement.
SS options.
 

DEEKAYPEE8569

Well-Known Member
Looking for a financial advisor who has knowledge of the FERS retirement system and TSP options.
Recommendations are greatly appreciated.

Very Respectfully,
DW
Have you considered e-mailing Reg Jones? fedexperts@federaltimes.com. From website: "Reg Jones was head of retirement and insurance policy at the Office of Personnel Management."
He's one of those folks who will find someone with the answer if he doesn't have it.
 

itsbob

I bowl overhand
I think your questions are more geared to a planner.
I am thinking about retiring at 56 with 36 yrs.
Questions regarding best options on TSP annuity options that would benefit the household.
One lump sum payout, partial payout? Investments with lump sum.
Pension options. Wait till 59, 60.
Annuity supplement.
SS options.

That's where I thought you were going, and you're correct.
 

Ken King

A little rusty but not crusty
PREMO Member
I think your questions are more geared to a planner.
I am thinking about retiring at 56 with 36 yrs.
Questions regarding best options on TSP annuity options that would benefit the household.
One lump sum payout, partial payout? Investments with lump sum.
Pension options. Wait till 59, 60.
Annuity supplement.
SS options.
At 56 (assume your MRA) with 36 years will give you an annuity equal to 36% of your high-three (remember that locality pay is not computed into this). Additionally, until you reach 62 you can get the Annuity Supplement, based on your 36 years (military service, not included) you can max the supplement at 75% of your projected SS payment expected at 62 years of age. For accuracy HR can run the numbers for you.

As to your TSP, that is all on you as to how you want to handle it; cash it in, roll it over, whatever.

As to SS, if you don't start to draw it at 62 you still lose the Annuity Supplement.
 

Clem72

Well-Known Member
I think your questions are more geared to a planner.
I am thinking about retiring at 56 with 36 yrs.
Questions regarding best options on TSP annuity options that would benefit the household.
One lump sum payout, partial payout? Investments with lump sum.
Pension options. Wait till 59, 60.
Annuity supplement.
SS options.

Here's some free advice, avoid the TSP annuity altogether. The rates are lower than the G fund.

Whether you leave the funds in the TSP for the low management overhead, or take it out and dump it into index funds, or buy blue chips with a history of good dividend growth really depends on how long you need that money to last vs how much you need to be comfortable now (which is where the planner comes in, but doesn't need to be TSP specific).

I didn't have much in TSP when I retired (no matching option given to CSRS) but If I did I would take a bulk payment and drop 1/3rd into IVV, 1/3rd into a premium dividend fund like PDT (since premium dividends are so hard to track and buy individually), and then park the rest into a couple of blue chips with good dividend growth like Coca Cola, Proctor & Gamble, WalMart.

Some of the blue chips pay a lower dividend of only 3-4%, but that is pegged to their current stock price. If you buy $100k and they go up in value over 10 years to $175k, the dividend you get will be based on the $175k and not your initial investment so it will be 5.5-7% of your initial investment.
 

Clem72

Well-Known Member
At 56 (assume your MRA) with 36 years will give you an annuity equal to 36% of your high-three (remember that locality pay is not computed into this). Additionally, until you reach 62 you can get the Annuity Supplement, based on your 36 years (military service, not included) you can max the supplement at 75% of your projected SS payment expected at 62 years of age. For accuracy HR can run the numbers for you.

As to your TSP, that is all on you as to how you want to handle it; cash it in, roll it over, whatever.

As to SS, if you don't start to draw it at 62 you still lose the Annuity Supplement.


There are several things wrong with what Ken is telling you.

First, the regular annuity goes to 33% not 36%, it's 1 percent a year up to a max of 30 years, and if you are over 62 when you retire, they give you an extra 0.1% (so max of 33%). If you retire at your MRA of 56 with 30 or more years, you will get 30%.

Additionally, locality is absolutely figured into your high 3. Special locality adjustments for AK and HI are not, but regular locality is along with differentials (shift work), premium, and hazard pay. No overtime though.

And military time can be included as long as it is not included in a military retirement or was purchased back.
 
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itsbob

I bowl overhand
Here's some free advice, avoid the TSP annuity altogether. The rates are lower than the G fund.

Whether you leave the funds in the TSP for the low management overhead, or take it out and dump it into index funds, or buy blue chips with a history of good dividend growth really depends on how long you need that money to last vs how much you need to be comfortable now (which is where the planner comes in, but doesn't need to be TSP specific).

I didn't have much in TSP when I retired (no matching option given to CSRS) but If I did I would take a bulk payment and drop 1/3rd into IVV, 1/3rd into a premium dividend fund like PDT (since premium dividends are so hard to track and buy individually), and then park the rest into a couple of blue chips with good dividend growth like Coca Cola, Proctor & Gamble, WalMart.

Some of the blue chips pay a lower dividend of only 3-4%, but that is pegged to their current stock price. If you buy $100k and they go up in value over 10 years to $175k, the dividend you get will be based on the $175k and not your initial investment so it will be 5.5-7% of your initial investment.

Coca Cola???

Raciss..
 

DoWhat

Deplorable
PREMO Member
Here's some free advice, avoid the TSP annuity altogether. The rates are lower than the G fund.

Whether you leave the funds in the TSP for the low management overhead, or take it out and dump it into index funds, or buy blue chips with a history of good dividend growth really depends on how long you need that money to last vs how much you need to be comfortable now (which is where the planner comes in, but doesn't need to be TSP specific).

I didn't have much in TSP when I retired (no matching option given to CSRS) but If I did I would take a bulk payment and drop 1/3rd into IVV, 1/3rd into a premium dividend fund like PDT (since premium dividends are so hard to track and buy individually), and then park the rest into a couple of blue chips with good dividend growth like Coca Cola, Proctor & Gamble, WalMart.

Some of the blue chips pay a lower dividend of only 3-4%, but that is pegged to their current stock price. If you buy $100k and they go up in value over 10 years to $175k, the dividend you get will be based on the $175k and not your initial investment so it will be 5.5-7% of your initial investment.
This is the type of info that I am interested in and the advice that I am seeking.
I want advice on TSP withdrawal methods since I will have a rather high dollar figure in the account.
And I want to try and avoid as much taxes as possible.
 

itsbob

I bowl overhand
There are several things wrong with what Ken is telling you.

First, the regular annuity goes to 33% not 36%, it's 1 percent a year up to a max of 30 years, and if you are over 62 when you retire, they give you an extra 0.1% (so max of 33%). If you retire at your MRA of 56 with 30 or more years, you will get 30%.

Additionally, locality is absolutely figured into your high 3. Special locality adjustments for AK and HI are not, but regular locality is along with differentials (shift work), premium, and hazard pay. No overtime though.

And military time can be included as long as it is not included in a military retirement or was purchased back.

FERS Basic Annuity Formula


Age

Formula


Under Age 62 at Separation for Retirement, OR
Age 62 or Older With Less Than 20 Years of Service 1 percent of your high-3 average salary for each year of service
Age 62 or Older at Separation With 20 or More Years of Service 1.1 percent of your high-3 average salary for each year of service


Where do you get the max of 30%??
 

BernieP

Resident PIA
Not trying to be a cynic here, just stating what should be the obvious.
All of the financial advisors are going to sell you a product they represent.

That being said, try Cedar Point Financial. The guy there is pretty good.
Seeing as how they have a lot of DoD employees as members, they might know a thing or two.
Don't like them, check with Navy Federal.
 

Clem72

Well-Known Member
This is the type of info that I am interested in and the advice that I am seeking.
I want advice on TSP withdrawal methods since I will have a rather high dollar figure in the account.
And I want to try and avoid as much taxes as possible.

There should be a financial and retirement advisor on the base, and a Union Rep should be able to put you in touch with them (even if you are not a part of the union, or even in a position covered by a collective bargaining unit).
 

DEEKAYPEE8569

Well-Known Member
This is the type of info that I am interested in and the advice that I am seeking.
I want advice on TSP withdrawal methods since I will have a rather high dollar figure in the account.
And I want to try and avoid as much taxes as possible.
I've read that transferring your TSP funds to something like; but not necessarily; a Roth IRA; or buy gold maybe. One or both of these may prevent withdrawal penalties, if any.
 
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