Page 31 - The Informed Fed--Hearn Wealth Management
P. 31

four built-in traps that await federal employees who have not prepared a
                        retirement plan.

                            1)  They  forget  that  the  IRS  has  a  vested  interest  in  their
                                 distributions which can cause surprising tax liabilities.
                            2)  The  FEGLI life  insurance  options  they  have  chosen  become

                                 unaffordable which leaves the employee underinsured at the time
                                 of need.

                            3)  The TSP allocations have left the employee with market and/or
                                 inflation risk.
                            4)  The trap we see the most is the fear of outliving their money. We



                                 go into more detail on this very important segment.
                            We find that the blame game can rear its ugly head when a person

                        suddenly realizes that their retirement plan is not what they thought or
                        assumed  it  would  be.  In  most  cases,  it is  those  individuals  that  take
                        responsibility for their own actions and seize every opportunity possible

                        to improve themselves and take the challenges that life brings. It is our
                        own human nature that will tend to take the easy way out and just hope

                        the obstacles and challenges will go away. Sometimes it will work but,
                        unfortunately, we have to address the problems and challenges head on.
                            You can try to sidestep yo

                        the consequences of shirking your responsibilities. This first philosophy
                        builds a foundation for everything else. Taking responsibility for your

                        decisions will set the  stage for  success.  Success  is where you  find  it.
                        People  from  all  walks  of  life  and  various  circumstances,  federal
                        employees or otherwise, have more or less had obstacles and have found
                        options that worked for them. Keep a positive attitude and work with

                        what you have and build on it one step at a time. Eliminate the excuses.
                        Are you too busy? Is your budget tight? Do you have too much debt?

                        There are always going to be things that will stand in your way. Resolve
                        to stand firm in the face of these distractions so that you can develop a
                        system  of  personal  accountability.  We  will  help  you  overcome  the




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