If you're a current/retired federal employee, this channel is for you. Based right outside of Washington, DC, The Fed Corner is a purpose built channel of information and financial planning strategies specifically designed for Federal Employees.
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Thiago Glieger offers his expertise in the Federal space as a regular author on numerous publications and to the federal employee community through this channel.
Usually your maximum catastrophic out of pocket is around $5k year. Minus your Medicare part B premiums for opting out. So the most you could be out is $3k. And that’s for some major medical costs. It just doesn’t seem prudent to have both. Most years you’re throwing away money. The only downside is if the Government eliminates FEHB for retirees. Then you got that part B penalty. Which could be 100-200 % more if you waited 10-20 years.
I’m about to be 65 in November and planning to retire in December 2024 meaning January 1st 2025 I’ll be retired! Since I’m a widow of a Vietnam Veteran, VA approved my health benefits but is asking me to enroll in Medicare Part A and Part B in order to continue with their benefits. Do I have to continue with my BC/BS health Insurance I have now?
1:13 has a FALSE statement. You CAN maintain FEHB even if you're taking a REDUCED pension or at least that's what the instructor and slides state in the training we received. If you're at your MRA+10 at age 57, you CAN continue FEHB after you retire at age 57 and take FERS pension immediately, reduced by 25%.
I appreciate the video. I receive a military pension (20 years of Army active service) and am 100% P&T service connected through the VA. I currently work as a VSR (VA claims processor). Once I hit my MRA, which at that time, I would have 14 years in, I will postpone my retirement until I reach 62 so that I don't receive the 5% reduction for each year under 62. I also invest heavily into the TSP. I think I am going to be in great shape come my permanent retirement.
The issues you are pointing out are causing seniors to stay in the workforce - backing up workforce development. The government should fix FERS so that it maintains parity with inflation. Also, remember that many of us were told that FERS would be better for us than CSRS. That has not turned out to be true for most of us. The government has been steadily reneging on its past promises. With such low pay and bad behavior and retirement uncertainty, why would the best and brightest choose a career in civil service? Compound that with the way in which the civil service is demoralized in politics, there's little to no benefit now. So, the quality of our workforce is steadily degrading. The government needs to stop shooting itself in the foot and be a good model for the private sector and treat its employees and retirees fairly. We shouldn't have to worry about surviving in retirement after a long career in service to our country. And we should be a place where young people want to pursue their career dreams.
You raise all very interesting and thoughtful points. I can’t and won’t comment on these, but it’s certainly a reason there has been mass exodus-and part of the reason I do these videos. Thanks for tuning in! -TG
Please correct me if I'm wrong.. So I can suspend FEHB or PSHB, enroll in medicare part B and sign up for Senior Advantage Plan at Kaiser. This will cover my family's medical needs.
First time in this channel, glad that I stumble into it, I have Roth TSP already for many years but I decide to stop contributing and instead put the funds in a brokerage Roth IRA, the reason is for the flexibility I will have once I retire, luckily the Roth IRA is having much better performance than the Roth TSP also. I'm maximizing the traditional TSP with good results.
One thing to consider with costs is that one does not necessarily need to have a super policy that pays for the entire period of care. Just like a deductible in health or auto policies, if you can pay some costs out of pocket, then the policy you buy can be cheaper- basically a subsidy that helps you so you don't bankrupt yourself and your partner. So if one can pay out of pocket a few thousand a month, then you can choose a policy that has a reasonable premium.
Mis July I followed eecommendation of advisor and went from G to C 100%. It has now plummeted, and I've lost tons!! I retire in 2 years, but now I have so much to make up for. Pretty terrified.
Sorry to hear that. I'd argue 100% stocks may be too aggressive for most people retiring that soon. You might consider a less aggressive allocation that better aligns with your objectives. You should tell your advisor that his recommendation is making you feel uncomfortable so that they can provide you with a better solution. Hope this helps. -TG
This video title was very misleading. You really did not say how to invest in the tsp if you have a fers pension. You just kept using general investment terms and instruments like cds, bonds , treasuries, etc. using tsp terminology would have been more useful
Super not helpful. Sure markets shoot up fast-sometimes-can also take 5-10 years just to get back to level. Constructing an investment barbell discussion would be more useful.
I am on FEHB. I also have A and B medicare with the new plan That's going to emerge in 2025 with F.EH, B, do I have to stay On medicare B and order to keep my Health Insurance. I currently have FEHB Blue Cross Blue Shield. If I decided not to go with plan B medicare Then I could. Be excused from that when the new system f.E HB health care is implemented in 2025
When should you retire? The correct answer is ASAP! I’d rather make huge budget cuts and downsize, instead of working a day past 60 at a job that will have me replaced as soon as I step out the door. Max out your TSP. Exercise every day. Eat healthy and moderately. You only live once. Guys, statistically speaking, you’re on borrowed time after 65. Don’t waste your last few years grinding away at a thankless job. Be with your family, travel, stop worrying if you’ll be able to get your vacation approved for that holiday getaway you want to plan.
Wise words! We obviously work with clients to help maximize their wealth, but “more money” isn’t the focus. Optimizing for happiness and fulfillment while remaining financially secure is the ultimate goal.
Impossible to time the market. In retirement, I use the G-Fund to rebalance back to my 70/30 allocation (buy low sell high). While working, I never used the G fund at all - 100% stocks, set it and forget it.
The system I use is much too expensive for individuals, and it’s quite challenging to learn and use if not a professional. But there are some other tools out there that are intended for individual use. I’m testing a few out to see how well they work and may eventually do a video on it.
To add another twist...I'm retired, I was not married to my wife when I retired so she will not be able to continue my FEHB if I die before her. Another question, I've heard going to lower priced BCBS basic after starting Medicare is cheaper and actually provides better benefits combined with medicare. Lot's to think about.
Am 58 and hit the 60 and 20 in two more years. Am retired military but did not buy back my military years - 21 years. I have Tricare health coverage and took out a $1M term life policy a couple years ago and cancelled my FEGLI. Can I retire at 60 and 20 years Fed service without penalty? The EBIS site says I can with an unreduced annuity. Thank you.
Well if you're 25 and just getting started you can't possibly know what kind of situation your heirs will be you might not even be married. Regardless of how you do it the point is try to save 15% of your gross income I am agnostic between Roth and traditional IRA. If you are in a hot startup company and you get stuck options make sure you put those in a Roth. They could grow to millions and when you get old enough you can withdraw the money without paying a dime.
Good points, it is hard to know. However, financial models can help determine which scenario would be better for you in the long run. Yes, some assumptions have to be made, but all things equal you can still make a good decision.
I am a retired Federal civilian but still working full time in private sector. Do I need to sign up for Medicare B while still fully employed? I am retired from the Navy and remain under FEHB medical insurance. So I’m not covered by my current employer for health insurance. Will I need to pay if I don’t sign up for Medicare B right at 65? I intend to retire in a few more years.
Yes, you will need to file for Medicare Part B or the 10% penalties will begin. FEHB counts as “Medicare equivalent” coverage ONLY while you are working. If you are a retired fed currently on FEHB, it no longer counts toward excluding you from the 10% penalty on Part B. This matters if you intend on taking Part B someday. The penalty applies to your part B premium.
I am a retired Navy Civilian. However I am still working as a full time consultant. I am still under FEHB medical/dental insurances. This year I turned 65. I signed up for Medicare A but am confused if I need to also sign up for B or suffer penalty later. I’m wondering does the fact that I’m still working full time allow me to delay signing up for Medicare B without penalty until I’m fully retired ? Or do I have to make the Medicare B decision as soon as I turn 65? Thank you
If a fed is still an active civil service employee under creditable time, then they are eligible under FEHB. If they're on FEHB while an active employee, they can postpone Part B without penalty. Once retired, they have a window of time before penalties begin.
I am retired, have FEHB; did not take medicare. I would like more info on the statement " fee for service plans will treat you if retired and 65 as if you have part b whether you do or not. " That concerns me a lot.
I’m 60 with 32 years w US army corps of engineers. I wish I had the knowledge then to go aggressive, full blown C fund for all these years. I was typically split 50/50 with C or G and L2020 & L2025. I would easily have at least another 100k if I was 100% C for all these years. In fact the first 2-3 years I was 100% G fund. I have just under 600k now with 4 1/2 years to go before retirement
I hear you. There’s so much misinformation about how the G fund is “safe”. Safe from what? Volatility, sure, but it is not safe from inflation and purchasing power risk.
@@TheFedCorner exactly 👍. the only positive is it’s never negative. It rarely beats inflation/cost of living. Maybe start looking at lowering my risk as I get closer to retirement but when Trump gets in hopefully the S&P will be great over next 4-5 years
If I'm contributing $1,200 a month to my traditional TSP and decide to stop traditional TSP contributions and switch to $1,200 contributions to Roth TSP, how much will I pay in taxes the following year? I'm a GS-12 making $103,000. Single (not married) and I also have a Roth IRA.
$103k - $14,600 (standard federal deduction) = $88,400 middle of 22% Federal Tax Bracket and $14,501 2024 federal tax. Consider as default $7,000 to Roth IRA and as much as you can afford up to $23,000 to traditional TSP.
All dollars going into Roth TSP will add to your taxable income, so your marginal tax rate will apply to those dollars. See the IRS tax tables to find your number.
i have not moved my money in the TSP in 18 years since day one they have been c and s. no matter how bad or good it is that is where it has been. no complaints of the amount of zeros in the account.
Doubling time about every 4y 9m right? 21 years here and retirement is linked to 2 more doubling cycles then I'm retired. (paid off house, will be zero debt by end of '25, then can live off the FERS & SS alone)
