“I have a financial advisor” is something I hear several times each week. “He is guiding me toward my federal retirement!” …. That is fine, I hope. If your advisor understands the unique nature of the federal employee and your benefits. In most cases, your advisor is an investment advisor, a stockbroker, maybe an insurance agent. The theory, in most cases, is to diversify your TSP funds and hope for future return retirement. All of this is fine for, whom I will call ‘civilians’, however, your highly unique retirement needs a deeper look:
For your protection, you, should ask your ‘Advisor’ the following questions:
- Does the advice outline all options, or just investment return?
- Does advice include private options for FERS SSB?
- What is the best FEHB or FEGLI plan for you? Does your advisor know what your FEGLI premiums will be in 10, 20, 30 years, can your advisor explain FEGLI Conversions?
- Does your advisor understand the calculation of your retirement and how you can increase your retirement by 10%? Can your advisor explain why your fellow employee will get 1.10% calculation and you do not? What about an early retirement, can your advisor explain your early retirement penalty and how to avoid a retirement reduction?
- Can your advisor help plan for a retirement under FERS / CSRS Disability? What are the Pro’s and Con’s of a disability retirement?
- Can your advisor calculate your disability retirement income, and for how long you will receive the disability income?
- Can your advisor understand the complicated details and calculate the advantages or disadvantages of a military deposit?
- Does your advisors explain the strategy of diversification? Which is actually a planning for loss vs return.
- Does your advisor explain their fee, up front?
- Does your advisor and his/her products include a fee?
- Can you, if it is best for you, your retirement and family, receive a good return without a fee, of any kind, or guaranteed income, protection of losses.
- What Guarantees does your advisor offer?
- Has your advisor planned 1000 federal retirement plans or just one or two in the past 10 years?
- Does your advisor tell you about contain hidden fees that continue forever. He/she may also charge FEES even if you have not contacted each other for years.
- Is your advisor your fellow employee, perhaps a neighbor, over the back fence? Does your neighbor promise to make up losses due to his advice?
You are worth more than a cookie cutter plan or one based on theory or presumptions. You. As a federal employee, are highly unique and should have a plan, custom for you.
If there are other and better options, wouldn’t you want to know about it?
