Financial Advisor experience w/ federal pension

[Anonymous]

I’m looking for a financial advisor that has experience with future federal retirees. Your recommendations are greatly appreciated!

[Anonymous]

I am just curious (recently retired) but what questions do you need help with? Fed retirement is pretty straight forward.

[Anonymous]

This is a great question. We would like the same.

In answer to the PP:
the big questions are about timing, Roth conversion, keeping everything in the TSP vs moving it out. So many possible scenarios in terms of retirement dates, especially given uncertainty and it's easier to have the conversation with someone who understands the rules and considerations.

[Anonymous]

When we retired we rolled our funds over to be managed by Eric Lantz:

https://www.ameripriseadvisors.com/eric.w.lantz/

There’s a lot of moving parts to retirement and they need to be carefully managed and structured. We are now 70 and he has done an amazing job for us. We are in a much better position than our friends who did not use a FA.

[Anonymous]

You should be aware of Ameriprise fees. They can be high. I tried finding them on their website but they are so buried I got bored looking. Likely done on purpose.

[Anonymous]

Anonymous wrote:This is a great question. We would like the same.

In answer to the PP:
the big questions are about timing, Roth conversion, keeping everything in the TSP vs moving it out. So many possible scenarios in terms of retirement dates, especially given uncertainty and it's easier to have the conversation with someone who understands the rules and considerations.

Roth conversion = camel's back period (i.e., between retirement and RMD)
Keeping it in TSP vs Moving it out = depends on what it is you are looking for that is not offered by TSP

I agree it's a lot easier to have the discussion with a live person but they usually charge pretty $$.

[Anonymous]

Hands down the expert in retirement planning is Tammy Flannagan. She writes for GovExec and her articles are incredible. I have not used her but I have read a number of her articles and she writes well and has an almost encyclopedic knowledge of the nuances of federal retirement.

https://www.retirefederal.com/about

[Anonymous]

^Also, her website says she does fee-for-service consultations so the fact that she isn't trying to sell you some fund with a high AUM fee and/or front/back end loads is also a plus.

[Anonymous]

Anonymous wrote:Hands down the expert in retirement planning is Tammy Flannagan. She writes for GovExec and her articles are incredible. I have not used her but I have read a number of her articles and she writes well and has an almost encyclopedic knowledge of the nuances of federal retirement.

https://www.retirefederal.com/about

Tammy is extremely knowledgeable, no doubt!
I'm pretty sure she isn't a financial planner, but I believe she works with a financial planner.
Does anyone know her fees?

[Anonymous]

We worked with this service/advisor -- hired him privately after my husband's agency had him do a day-long seminar and then hourly consultations -- and he's been very helpful. Can take your information, come back with detailed projections and advice, and will meet with you regularly if needed/wanted.

https://laurelws.com/federal-empoyees/

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is a great question. We would like the same.

In answer to the PP:
the big questions are about timing, Roth conversion, keeping everything in the TSP vs moving it out. So many possible scenarios in terms of retirement dates, especially given uncertainty and it's easier to have the conversation with someone who understands the rules and considerations.

Roth conversion = camel's back period (i.e., between retirement and RMD)
Keeping it in TSP vs Moving it out = depends on what it is you are looking for that is not offered by TSP

I agree it's a lot easier to have the discussion with a live person but they usually charge pretty $$.

I have pretty much decided I will roll over my TSP to Vanguard (no particular reason for V, but I have an account with them already--Schwab or Fidelity are other good choices):

1) TSP can't handle charitable donations from your RMDs. Donating this way reduces your income for tax purposes by the amount of the donation.
2) I want to split heirs on my savings, with one heir solely receiving the Roth portion. This isn't possible in the TSP.

Anther reason for rolling over that isn't mine: you can buy individual stocks or even crypto and aren't just limited to TSP funds

Reasons to not roll over:

1) You lose the G Fund. However, you can always choose to not roll over a certain portion and keep that portion in G.
2) Low fees. But now, fees at Vanguard et al are almost as low.
3) If you plan on working after retirement and contribute to an IRA, you can't do a backdoor Roth without paying all the taxes on the non-Roth TSP you have rolled over to the IRA.

This may not be a complete list, but they are things I have thought of.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hands down the expert in retirement planning is Tammy Flannagan. She writes for GovExec and her articles are incredible. I have not used her but I have read a number of her articles and she writes well and has an almost encyclopedic knowledge of the nuances of federal retirement.

https://www.retirefederal.com/about

Tammy is extremely knowledgeable, no doubt!
I'm pretty sure she isn't a financial planner, but I believe she works with a financial planner.
Does anyone know her fees?

I talked to her firm (not to Tammy-- not sure if Tammy still does individual consultations or not). Basically they are all about educating you on the retirement process-- they will calculate what your pension should be to make sure that it matches OPM's calculations. They'll also talk to you about the various choices you have to make when retiring from the feds, like survivorship for the annuity, life insurance, TSP, social security, etc. Think that process costs about $1,500 (discount for a fed spouse added on).

AFAICT, they are not doing financial planning-- how much do you need to retire, how much can you withdraw each month, how should you set an asset allocation, etc.

[Anonymous]

Two reason to keep some money in your TSP, is 1) the G fund, a bond fund that can't lose money and 2) low fees. So I would figure out what you want your bond position to be and keep that in TSP.

[Anonymous]

My biggest question about TSP vs transferring out:

I know that with TSP you cannot take money out of just one fund (i.e. from the G fund when equities are down, or from the C fund when equites are high). Vanguard or the like would allow you to take RMDs out of your fund of choice. So how do savvy people structure their investments and RMDs when they keep some money in the G fund and the rest goes to Vanguard.

I know someone has figured this out. You have to take RMDs from each account (i.e. both TSP and Vanguard).

[Anonymous]

What's the benefit of the G fund vs a money market account at Vanguard (or other)? Yes, I know there's a little bit of risk to MM but is it worth staying in G just to avoid it?