Financial Planning for Federal Employees

Retirement Planning (FERS)

To prepare for federal retirement, it’s important to understand the three legs of the federal retirement stool: FERS annuity, Thrift Savings Plan, and Social Security benefits. To pursue a stable retirement, it’s crucial to understand how each leg works and how they complement each other.

To get started, follow these steps:

1. Request your FERS annuity estimate from your HR department.
2. Check your Social Security benefits estimate through your Social Security Administration account.
3. Locate your most recent TSP statement.

Once you have all three pieces of information, you can begin planning your retirement. However, there are additional documents you may need to consider, such as IRA statements, bank statements, insurance policies, tax returns, wills, and trusts.

At Sentinel Financial Planning, we assist you in making sense of your current financial situation and help you move toward your retirement goals. We calculate your projected income for the first 12 months of retirement and estimate how much you need to have saved on your first day of retirement.

Remember, the key to seamless retirement planning is to start as soon as possible in your career. Early planning allows you to start saving sooner, reduces stress, and provides a sense of clarity and direction. Avoid the uncertainty of guessing how much to save and when you can retire by starting your planning journey today.

Thrift Savings Plan (TSP)

The TSP is a valuable retirement savings option for federal government employees, offering a 5% matching contribution and low expenses. However, when you leave your federal job, you must consider your investment and financial needs before deciding to keep your TSP account. While the TSP offers 5 core funds and additional Lifecycle funds, working with an independent financial advisor may provide a more personalized investment portfolio with a wider range of options.

It’s important to understand the underlying investments in the TSP funds, which are supposed to mirror market indexes, and the fact sheets may list the top 10 holdings in each fund. The TSP Lifecycle funds offer a professionally determined investment mix, but a professionally managed account provides a more customized approach based on your situation and market conditions.

When you leave federal service, you have the option to withdraw your money from the TSP, receive a full distribution, receive periodic payments, or roll over to an IRA. However, choosing the wrong option could result in an unnecessary tax bill or restrict access to your money, so it’s crucial to understand all your options before making a decision. Having the flexibility to make your own decisions is important for managing future life events.

With Sentinel Financial Planning, you will have a trusted partner to guide you through the complex world of retirement planning and investment management. Our goal is to help you make informed decisions about your Thrift Savings Plan and to put a solid financial plan in place for your future.

Investment Management

At Sentinel Financial Planning, we understand the importance of making the most out of your hard-earned money as a federal employee. That’s why we offer personalized investment management services, designed specifically for you.

Whether you’re saving for retirement, building a nest egg, or planning for a major life event, we have the experience and the tools to help you pursue your financial goals.
Our investment management services are tailored to meet your individual needs and help you increase your investment returns while reducing your risk.

We believe that an effective investment strategy starts with understanding your financial situation, your risk tolerance, and your goals. We will work with you to develop a plan that takes into account all these factors and provide ongoing support and guidance to help you stay on track.