Federal financial advisors are equipped to help you properly plan for the future if you are a federal employee. Working for the government brings many perks. However, to make the most of the retirement plan offered to you as a worker, you will want to seek the advice of advisors and learn how to maximum the money. Here are a few top ways federal financial advisors have helped workers like you so you can determine how you can utilize their assistance.
One of the main perks in working for the federal government is you will receive a nice pension. A federal pension is money you will receive throughout retirement and is usually a certain percentage of your previous pay. The pension size you will receive depends on several factors including how long you worked and the ranking you held in the office. You should feel very fortunate to be receiving this benefit because pensions are dropping rapidly from the benefit plans of many employers.
To make the appropriate choices on what to do with the federal pension funds you receive, you will want assistance from one of the federal financial advisors near you. An independent financial advisor can help you determine if you will need all of the pension money to pay bills after you retire or if you can put a portion of it into savings to begin earning interest and creating more financial wealth. Since expenses usually go down after you retire, you likely won't have any problem putting a portion of every check into savings.
Even if you will receive a large pension, you will still want to do some additional retirement planning to safeguard against the unexpected. Federal financial advisors often recommend that you open an additional retirement account to begin saving more just in case you will need more money to live on during the golden years for unexpected medical issues or something else. Many types of retirement accounts exist and federal financial advisors can fully explain each option to you. Some of the most famous financial advisors got their start as federal advisors.
The most common nest egg accounts that most people utilize are the 401k plan, Roth IRA, and traditional IRA. As a federal employee, the federal financial advisors may recommend that you either go with a Roth IRA or traditional IRA, but again, this will depend on your unique situation. Once you select a nest egg account, you will want to work with the financial investment advisor to determine the appropriate asset allocation for the funds. The allocation of assets will be determined by such factors as age, risk tolerance and more.
Hopefully by combining the financial pension you receive and the nest egg account wealth you build throughout the working years, you will have more than enough money to fully enjoy the golden years. Advisors will tell you that the more you hold in the post working years, the less you will need to stress about where you will come up with money for unexpected costs. You may even have enough left over to pass along as an inheritance to any deserving friends and family members.
As advisors will tell you, life doesn't begin after you enter retirement. In fact, most of the expensive life goals you will have will come well before you reach the age of retiring. Therefore, federal financial advisors are important to help you properly plan for any major life goals you hold. One of the largest financial plans you likely hold is buying a home. While a home is a great way to build your assets and provide a sense of security, it's also an expensive purchase.
Advisors will tell you that not only will you need a down payment which is usually twenty percent of the purchase cost, but you will quickly discover that hidden costs such as appliances make buying a home much more expensive than you originally planned. Federal financial advisors have experience helping people like you plan for home purchases and can guide you through the process of saving enough to successfully meet the goal.
Another major life plan you will want to have sound financial backing for is planning for parenthood. While you could become a parent without having any funds saved up, advisors will tell you this is a risky decision because you never know what costs can arise with an infant. The more you have saved up from seeking the advice of federal advisors, the less stress you will feel after having the first child. If you want to help the child pay for their college education, you will also want to start saving for this goal as soon as possible. Federal financial advisors will have suggestions on the best fund options to help the money for this plan grow quickly.
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