Page 104 - The Informed Fed--Hearn (edited 10.29.20)

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FINAL

RECOMMENDATIONS

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The federal benefits and retirement package has four common
problems that employees often don’t discover until it’s too late to
change:
1) Retirement income has a higher tax liability than they anticipate.
2) With FEGLI, employees pay higher-than-market rates for life
insurance, yet most are under-insured at their point of need.
3) Investment options in the TSP are low-return or high-risk,
making it difficult to create enough retirement income.
4) Most federal employees will be forced into a lower standard of
living and will be under-funded in retirement.
Our experience in working with federal employees has taught us that
no one solution is right for every situation and that, in most cases, we
can only reduce, not eliminate, these four problems. The following
suggestions, while general, when applied to specific situations have made
the difference by hundreds of thousands of dollars for many federal
employees. We understand your benefits package—its strengths and its
weaknesses. We know how to help you get the most from your
retirement plan and show you choices that will allow you to take
responsibility for your future. Remember, ultimately, it’s about you.

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