When it comes to career planning, many federal agencies do an excellent job. Better than most private sector activities for their employees.
But when it comes to providing financial planning, most federal agencies do little or nothing. What is good. The less the better. Most private companies also avoid the topic.
A major reason is that financial planning requires personal, practical planning and information that employers generally do not want or need. And shouldn’t have.
So what’s next? We contacted Tammy Flanagan, a leading federal benefits specialist. She has followed many office training courses and is now doing individual career coaching.
Here are some tips she gave about financial versus career planning:
For financial advice, employees should hire a financial advisor who understands federal employee benefits, if possible. Here is a list of financial planning information and some advisors I know that I would recommend to my clients.
The TSP is trying to help employees understand how to invest and how to manage their retirement savings, but they try their best not to give ‘advice’ but I think they are doing an excellent job of providing training that helps employees prepare Retirement: TSP webinars are hosted by the Federal Retirement Thrift Investment Board’s Office of Communications and Education.
OPM does not offer much pension support at all. They instruct employees to contact their agency’s retirement specialist, and some agencies deliver better than others retirement advice, but none of them should provide financial advice.
The Social Security Administration provides good information, but not much advice. They do have a fact sheet with general guidelines.
Before making a decision …
There are pros and cons to withdrawing your benefits before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is that your benefit will be reduced. Each person’s situation is different. It’s important to remember:
If you defer your benefits past full retirement age, you will be eligible for deferred pension credits that increase your monthly benefit. That there are other things to consider when deciding when to receive your pension.
Almost useless fact
By Alazar Moges
There are a series of underground tunnels underneath Disney World known as Utilidors. They are used so that cast members can travel through the Magic Kingdom without having to deal with crowds or be seen. The tunnels also have a series of trash cans attached to the ceilings to help move the large volume of waste throughout the park.
Source: All Ears