Retirement

WHEN WILL I GET MONEY AND HOW MUCH?

Remember regardless of how or when you retire the first 5 to 8 months you only receive 70 to 80% of your pay, after that then they finalize retirement and back pay 20%.  Meaning if retire CSRS estimate 2800.00 per month realistically you receive around 2,200 a month until the process complete. If you are FERS and going to get 1500.00 per month you would receive around 1200.00 a month. Why does this happen? They send a booklet of cost of benefits and what your true retirement is about, but when they get your book back from you they are going through the records to make sure all time served gets credit, also seeing if you owe the government or post office money.  So there is a delay the first 5 to 8 months.  Also a big factor is the FERS Supplement— it is not paid at all until Interim payment process is completed.

Retirement planning tip – SAVE YOUR MONEY this is going to happen.  Do you have this amount of money in your savings account? 

 

THE BLUE RETIREMENT BOOK FROM POST OFFICE

You must order this from the Post Office and they will send within 2 weeks. They will set up a one hour phone consultation to discuss how to complete and will request that you send the pages required back to them within 60 days.

Retirement planning tip –  AS SOON AS YOU GET THE BOOK – BEFORE YOU FILL OUT ANYTHING…THIS IS WHEN YOU WANT TO CALL DEBRA POWER, EZFED team at 972-263-0043 to set up a face to face FREE appointment with Gary Graham. ASK AROUND – Gary is THE EXPERT.  He has done thousands of these.  

 

When you get the “BIG BLUE BOOK” – Be very careful when you are completing – ANY DOCUMENTS that you miss or make a mistake you delay everything.  If you had a divorce in your past and ex-spouse has entitlement to retirement, you will need to send divorce paperwork to them. No!!! They don’t blow these things off – it will stop your retirement in it’s tracks. Believe me if there is attorney involved they will notify OPM of their clients rights to the money. If married make sure you send a copy of marriage license and if past military copy of DD214 will be needed.  If you are married, but living separate, ie. never go divorced – YOU ARE CONSIDERED MARRIED.

 

Whether you are CSRS OR FERS , you will receive an annuity estimate to verify your time cost of benefits and money you will receive monthly. Look this over extremely carefully it will have on the paperwork funded time of service. Example – it will say USPS time Funded or Not,  it will have a Y for yes or N of No.  Military time will have your branch of service – Be careful here – you must buy back military time ahead of turning in retirement once you retire it can’t be bought back.

 

CAN I CHANGE MY MIND OR ADJUST SOMETHING I DID WRONG ONCE I TURN IN BY RETIREMENT PAPERWORK?

The more information you have the better to make a good decision on retirement. It can be a very hard fight if something gets screwed up. All retiring individuals have a right to phone interview they simply tell you how to fill out your booklet it normally takes 45 to 50 minutes to do. We have been told they go so fast some people are more confused than when they started.  After this, if you remember a question, you have to call and leave a message. You may or may not receive a call back and if you do … you may have forgotten the question you asked.

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SUGGESTIONS FROM GARY GRAHAM

Saving for retirement – make sure you have at least 6 to 8 months of income in the bank to cover the retirement interim period.

Remember this IS CRITICAL OR YOU CAN FIND YOURSELF BROKE.  Today $2,000 a month sounds great until inflation kicks over the next 10 years and you find your buying power has shrunk because cost of goods are higher.

I tell my clients ask yourself very basic questions,

Do I have any debt I need to pay off now?

Do I need new vehicle or do need money to repair vehicle I have.

What are monthly bills going to be and how much do I need monthly and do I have enough?

2 primary things to remember into retirement about savings!

1- The Accumulation Phase is while you are working hopefully you are saving money.  When you retire you go to a fixed amount monthly, which may or may not allow you to save. Although, many of us may want to work after we retire from the Post Office, the truth is many will not.   So what you have saved must be enough!!

2- Distribution Phase is when we try and convert all those dollars saved into additional monthly income hopefully to last the rest of your lives. Be careful here – a lot of folks retire and think that $100,000 is a lot of money, so they continue their spending habits after retirement and are broke a couple of years into retirement. Bitching about this does not fix the problem broke is broke.

I tell my clients,

Friends you must have a common sense approach to money. Spending habits have to change and you must make sure your money save is SAFE and GUARANTEED to last you the rest of your life.

Honestly look at it this way, I’m retiring at age 56 I have $300,000 in the TSP I may live for 30 to 40 years do I have enough money to make it?

You saved for 30 years (accumulation phase) now the real question is how will I get income guaranteed to me the rest of my life so I won’t run out of money.

Retirement tip – That is what we do and it is a very simple approach folks it is called PLANNING.

 Good plans = Good results!!  No plans terrible results!!!

CALL DEBRA POWER, EZFED team at 972-263-0043 to set up a face to face FREE appointment to review

where you have your TSP monies and other monies invested and what you are expecting to do when you retire.

 Gary Graham and Rick Power  have been helping people for over 30 years.

 Good plans begin WHILE YOU ARE SAVING, not just when you are ready to retire.

 There are many options, let the EXPERTS help you.

 Do not run the risk of OUT LIVING YOUR MONEY!!!!

IT IS NEVER TOO LATE TO PLAN!!!! 

 

DREAMS CAN COME TRUE, LIFE AFTER THE POST OFFICE IS REAL, YOU OWE IT TO YOURSELF TO GET READY FOR THE BEST TIME OF YOUR LIFE….RETIREMENT!!!