Recent surveys reveal that over 60% of pre-retirees age 50 and older have not worked with a retirement-planning professional and likely never will. The average may be even higher among federal workers because it’s hard to find professionals who have a comprehensive understanding of the federal retirement systems. Others may feel they don’t need a retirement consultant because they already work with a financial advisor or a financial planner. Let’s look at the differences.
Financial Advisor Or Financial Planner?
Far too often, the terms “financial advisor” and “financial planner” are used interchangeably. Though their areas of expertise may overlap, their primary focus is clearly different. A financial advisor usually focuses on managing their clients’ investment portfolios and offers advice on investments through the ups and downs of the stock market. Financial planners focus on the big picture of your current finances and create comprehensive financial plans that can encompass your income, expenses, assets, taxes and liabilities.
“However, for pre-retirees who work for Uncle Sam there’s one drawback: most retirement-planning professionals don’t understand the complexities of FERS benefits.”
How Is A Retirement Consultant Different?
While financial advisors and planners focus on your current finances, a retirement-planning consultant focuses on your financial outlook once you’re no longer working. They can analyze the big financial picture of your retirement to help ensure you have adequate funds to support the life you envision after you retire.
As a professional who helps Americans financially prepare for their golden years, they can provide guidance on your Social Security benefits, managing your 401(k) and other retirement savings plans, in addition to strategies for lowering income taxes in retirement.
Other services may include helping you make decisions about healthcare insurance, life insurance, long-term care insurance and estate planning to ensure you leave a legacy. However, for pre-retirees who work for Uncle Sam there’s one drawback: most retirement-planning professionals don’t understand the complexities of FERS benefits.
A Federal Retirement Consultant℠ (FRC) Is Trained In Federal Benefits
Financial professionals who earn the FRC℠ designated have completed comprehensive training in federal retirement benefits. They can help ensure you have the latest information you need to make crucial decisions that are unique to federal workers.
Should you retire at your Minimum Retirement Age (MRA)? Or, should you work till age 62 to get the FERS 10% Bonus? Should you make post-tax contributions to the Roth TSP? Or, should you keep all of your money in the tax-deferred, traditional TSP? Which FERS survivor benefit should you choose for your spouse? Since the OPM is prohibited from giving you the advice you need to answer these questions, contact an FRC℠ advisor who can.
