Understanding and Maximising Federal Benefits for Mid-Career Female Federal Employees
Getting a Solid Footing in Federal Employment
If you’re a female federal employee who has been in service for some years, chances are you’re enjoying certain benefits. You are probably covered by the Federal Employees Health Benefits (FEHB) programme, have access to Flexible Spending Accounts (FSAs) and Health Spending Accounts (HSAs). Regular contributions are also likely being made into Social Security and the Federal Employees Retirement System’s Thrift Savings Plan (TSP) to cater to your retirement needs. However, this is the best time to consider refining your retirement strategies, and perhaps seeking the help of a Certified Financial Planner ™. These early steps can help guarantee you have the necessary resources to support a comfortable life in your post-career years.
Maximising Contributions to the Thrift Savings Plan (TSP)
A great step you can take towards bolstering your retirement fund is to increase your contributions to your TSP. In your early federal career, your employer might have automatically deposited 1% of your basic pay per pay period into your TSP account. Now as a federal woman employee in mid-career, this is an excellent time to increase those contributions. The more you put into the plan, the quicker it grows, which is particularly vital if you’re in your 50s and inching closer to retirement.
Navigating Career Breaks
As a woman, you’re likely to leave your job temporarily or reduce your work hours when you have children or need to care for elderly relatives. The challenge here is that contributions to your TSP can only be made if you’re working. A viable way to mitigate this is to open an independent retirement account (IRA) and contribute up to $7,000 annually. Divorce may also present a challenge where you might end up with a lower TSP balance and fewer Social Security credits if you took time off to raise your kids. A Certified Financial Planner ™ can be crucial in developing an effective solution to these challenges.
Managing Current Expenses While Saving for Retirement
A common concern among mid-career professionals is how they can increase their TSP contributions while managing regular expenses such as mortgages, kid’s education, food, clothing, among others. It’s vital to understand that you can strike a balance. One approach is to establish a 529 plan for funding college education while growing your contributions tax-free. Moreover, you can seek professional financial advice on setting up college funds and mortgage payoffs, among other vital matters.
Mid-Career: A Crucial Time to Plan for Retirement
While your immediate focus might be on raising kids, housing, career advancement and planning for college, it’s equally essential to focus on your retirement strategies. A professional financial advisor can offer helpful guidance on retirement planning. With decades of experience assisting federal government employees like you, a financial planning firm that focuses on federal benefits can be your most reliable partner in this journey.
Conclusion
A significant portion of employees in federal-focused financial planning companies are women who understand the unique challenges facing female federal employees. Connect with such a team to help shape your current and retirement financial strategies. Remember, the information shared here has been obtained from reliable sources. However, any opinions expressed are those of the content writers and not guaranteed to be wholly accurate.
Your investment circumstance is unique, and you should consult your financial advisor and review tax or legal laws with the appropriate professional before making any investment decisions.
Originally Post From https://stwserve.com/mid-career-financial-planning-for-female-federal-employees-knowing-your-priorities/
