Areas of Expertise

The Federal Employees’ Group Life Insurance Program (FEGLI)

FEGLI offers a diverse range of benefits for yourself as well as your family members. But there is a problem with FEGLI. Starting at around 50, it gets expensive and is less attractive (or an outright loser) compared to private life insurance.  We will guide you through the complete set of benefits under FEGLI and compare that to life insurance options offered in the open market.

TSP

TSP is a low-cost investment plan with limited index options having an attractive average net expense ratio of 0.033%. The options include:

• C Fund (US Large Cap Stocks)
• I Fund (International Stocks)
• S Fund (US small cap stocks)
• G Fund (US government bonds)
• F Fund (US diversified bonds including corporate bonds)
• L Fund (Lifecycle funds which reduce stocks and add bonds as you get older)

With the new TSP administration, mutual funds are being offered at higher cost. The new mutual funds are a desirable addition. But it adds complexity.

While employed, and with generally favorable stock market conditions and low inflation for the past 30 years, allocating your TSP has been relatively easy. Now — with inflation, a 25% sell off, rising interest rates and your potential retirement — investing is more complex. What should you do? We can provide guidance on your choices.

TSP/IRA Rollovers

Rolling a portion of the TSP into a private IRA can be a desirable option. A private IRA will open you to a broad range of investments not available in the TSP. This includes individual stocks, index funds, ETF’s, and income-oriented annuities. We also have knowledge of self-directed IRA’s that allow you to invest money, presently in the TSP, in real estate or other businesses. We will assist you in the mechanics of a rollover if you so choose.

Federal Employee Health Insurance (FEHB) and Medicare

FEHB is offered to federal employees and is generally a good choice. On the other hand, if you are nearing retirement or are already retired, adding Medicare may be optimal. We are licensed Medicare advisors and will offer a comparison of the many choices in Medicare that can work with FEHB or as a substitute for FEHB. We can also compare Federal Long-Term Care (FLTCIP) and Federal Vision and Dental (FEDVIP) versus private options.

Annuities

Annuities are an often-misunderstood retirement option. Fixed annuities protect you from market losses but in exchange you likely will have some limits and rules on withdrawals.

If you are retiring and you read about annuities, you will find some retirement advisors saying always use them and others say never use them.

Who’s right?

The reality is that annuities are a good vehicle for many — but not all — federal retirees.

At American Federal Retirement Fiduciaries we have the planning tools and software to illustrate the plusses and minuses of an annuity versus an investment, and educate you as to what is best. Ultimately it is your choice as there is no perfect answer. 

We are one of the few federal retirement specialists that operate as fiduciary investment advisors and have guaranteed income annuity capability. Since we are licensed both ways, and utilize both tools, we have no bias as to what is best for you.

Social Security

Social security is an important part of your retirement planning. It is not highly complex, however deciding when to take it (it goes up 8% each year between 66 and 70) is an important financial decision that must be considered in conjunction with the other calculations we do in your customized retirement plan. There are election options of relevance if you are married. Don’t guess on when you should take your social security. Let us assist you in this important decision.

Federal Benefits

We are experts and certified by FINRA as Federal Retirement Consultants. This designation requires a rigorous course of study, continuing education on benefit changes and yearly testing to remain certified. As FRC advisors we have the mechanisms to make you aware of various benefits that you may be missing because you don’t know about them. Make sure you get all you deserve. We invite you to review your benefits.

Estate and Tax Planning

Have you considered the most efficient transfer of your assets to your survivors? Your real estate and market investments, insurance policies are your life’s work. Make sure they move to your loved ones in a timely tax-efficient manner. We can introduce you to estate planning specialists that can outline all relevant strategies including trusts, health directives, living wills and tax minimization plans.