Q: How can I maximize my FERs retirement payment?
Don’t retire too early; having at least 20 years of service and reaching age 62 is recommended. Reaching age 62 will maximize your COLA adjustment. It is best if your highest paying years are in your 60s closer to retirement. If married, also look at your survivorship benefit.
Q: Is the G fund the only “safe” investment fund?
The G fund is considered safe because it is backed by government securities. The focus of the G fund is preservation of capital. The tradeoff is that it has a much lower potential rate of return and may therefore not keep up with inflation resulting in an erosion of buying power. It is important you consider your investment goals and risk tolerance before choosing your investment fund.
Q: What is a Roth TSP?
The Roth TSP is made with after tax contributions and matched by the government to your traditional TSP account. If you reach the age of 59 ½, and the account is at least 5 years old, the money contributed, and the gains are never taxed.
Q: Should I buy back my military time?
It usually makes the most sense to buy back military time if you are not already receiving a military pension. You cannot draw both a federal retirement, and a military retirement for the same time-period. Ask your FedHelp professional to help you calculate your military buy back and see if military buy back will fit your retirement goals and current budget.
Q: How can I maximize my Social Security?
Social Security is a complex topic and there may be variables to your situation. However, to get the maximum payment from Social Security you can do the following. Make sure you work at least 35 years. Working to age 70 will generate the maximum benefit, so work to age 70 if you can. If not, work until at least your full retirement age. Your payment will be based on the top 35 earnings years, so if you can, earn as much as you can the final years before turning on Social Security.
Q: Should I enroll in Medicare?
Enrollment in Medicare is a personal choice, but it is generally accepted that you should enroll in Medicare 3 months before turning 65. You can retain your FEHB plan if you choose but refer to the FEHB guide to make sure you follow the proper procedure to get your care covered. See,
https://www.opm.gov/healthcare-insurance/fastfacts/fehbmedicare.pdf