Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Take Time Now To Consider What You Want In Retirement by, Aaron Steele

It’s essential to work towards maxing your Thrift Savings Plan (TSP) contributions, especially if you plan to retire by the end of the year.

However, The reality is that most federal employees approaching retirement may not have the financial resources required to finance their TSPs adequately, and there are various reasons for it.

Most federal employees who work in a lower-graded position were setting away their $19,500 elective deferral limit, which is impractical. Some still have children to support through college, disabled spouses or children to take care of, or may have started their federal careers with a lot of debt to repay.

There are two conflicting options for anyone who believes they don’t have enough money for retirement:

1. Put in more hours at work; or

2. Make a budget that allows you to live on less.

1. Put In More Hours At Work.

If you don’t have enough money saved away to allow you to retire as you planned, consider delaying your retirement for a few more years to save more money. For instance, if you plan on retiring by the end of the year, you can delay by a year or more to grow your retirement income.

2. Make A Budget That Allows You To Live On Less.

If you don’t want to continue past your retirement age, you’ll have to look for a way to live on your available funds.

It would require creating a budget and sticking to it to ensure you don’t run out of money in retirement.

Neither of these options is particularly enticing. One must either work longer to abbreviate their retirement or live on less to be able to achieve some of the things on the bucket list that they had hoped to do in retirement.

If you face these difficult choices, ask yourself: “Which one is more important to me? Money or time? There’s plenty of time in retirement but no new sources of income.

So, if a person: A) enjoys (or at the very least does not despise) their profession; and B) expects to live a long time after retirement, they might contemplate working longer. Someone like myself (I enjoy what I do, and my family has a lengthy life expectancy) could be inclined to navigate the option of working longer.

You will enhance your CSRS or FERS pension, your Social Security income, and your ability to save more in the Thrift Savings Plan (TSP) for each extra year you work. You would also have one less year of retirement to save for.

On the other hand, if a person dislikes their job and their family’s lifespan isn’t as long, they may choose to take the money and run. What good is money if you don’t have anybody to spend it with? Early retirement allows you to spend more time with those you love Ã¢â‚¬â€ your spouse, kids, grandchildren, and others.

Someone like my wife (who had the worst boss in the world and whose family is a decade younger than mine) might go this route.

Another factor to consider is that as people get older, they are less able to participate in some of the more physically demanding retirement activities. So if you planned on taking a hike, traveling around the world, or engaging in some fun activities, it may be best just to quit and start exploring: but again, it requires substantial funds to engage in all of these activities.

One standard route for those in the latter category is quitting their jobs and working part-time. Most engage in coaching and other part-time jobs that allow them to earn some income in retirement.

But again, working in retirement may affect your Social Security benefits.

For every $3 you earn in retirement, the Social Security Administration (SSA) will withhold $1 of your Social Security benefits. So if you earned $3,000, your benefits would reduce by $1,000. This deduction will stop once you reach the full retirement age (FRA).

Conclusion

There is no “one size fits all” option when deciding whether to work longer or spend less in retirement. As you approach the retirement age, it’s best to consider your options based on your unique situation.

Contact Information:
Email: [email protected]
Phone: 3604642979

Disclosure:
Disclosure:Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure: Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

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