The US congress created the Federal Employee Retirement System (FERS) in 1986 and since 1987 all civilian employees who possess coverage for their retirement are protected by FERS. This retirement plan provides benefits to federal employees through three different avenues, “ a Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP)”. Social security and TSP are transferable if an employee leaves the federal government before they retire. The government agency for which the employee works will pay a portion towards the Basic Benefit Plan and Social Security as well as deducting a portion of the employees salary toward these programs. Once the employee retires they will receive monthly payments from their various plans for the remainder of their lives.
FERS was established to provide federal employees the money they would need to be able to retire because of the increasing age of the population. This also acts as an incentive for employees to continue to work for the federal government until they retire. This was in effort to retain employees and ensure that they would not need to rely purely on social security for their retirement.
This has created a larger buffer for federal employees when they retire but for some this buffer may not be enough. If an individual wishes to retire with a greater standard of living than they currently have they will need to seriously consider how they plan to achieve this. It is possible with the right financial and retirement planning. A firm such as Cannon Wealth Solutions is able to help people plan for retirement effectively through a strategy of investment. This comes with the goal of creating passive income even after retirement.
Cannon Wealth Solutions
Cannon Wealth solutions is a financial advice and wealth management firm which is composed of Registered Investment Advisors (RIA). These advisors have a fiduciary responsibility towards their clients which ensures that they always make the decisions which will benefit their clients the most. They are not swayed by outside influences and they do not make decisions which would benefit themselves or their firm. Instead their entire focus is on their clients and creating the best financial future for their clients.
They specialize in a number of different areas of finance and one of these areas is retirement planning. The essential first step of retirement planning is determining the standard of living which the individual wishes to maintain after their retirement. This will determine the amount of money which will need to be saved and invested to be able to meet this standard for the rest of their lives.
While Federal employees benefit from FERS this may not be enough to support the lifestyle which they would like to lead. Financial planning from experts can help turn unspent income into an investment which will provide passive income during retirement. This will ensure that more money is coming in and no work needs to be done to maintain it. This can help increase the standard of living which a retired person may desire.
Additionally, if an individual stops working for the federal government before they retire they will lose out on their Basic Benefit plan for their retirement income. This will mean that the income of the retiree will need to be supplemented with other sources of income. Additional income can be created for retirement with solid investments established before retirement.
There are many expenses which a retiree has to consider. There may be expensive medical care in the future or a great deal of traveling. People have different wants and needs for their retirement and this may include leaving money for children or grandchildren. Proper retirement planning can help individuals working in the federal government to maximize their retirement. This enables a retiree to engage in all their desired activities and be prepared for unexpected costs such as natural disasters or medical emergencies.
Robert Cannon is a fiduciary financial advisor and as a result is held to the highest standards ethically and professionally. His investment strategy focuses on maximizing returns while minimizing risk as much as possible. This strategy tends to bring his clients strong returns with limited downside.
FERS provides federal employees with a retirement annuity which they can develop in tandem with their federal agency for the duration of their federal career. This system can lead many federal employees to retire comfortably however some employees may want a more luxurious retirement. This is where Cannon Wealth Solutions can help those looking to retire well while being able to generate consistent passive income. This can allow retirees to focus on enjoying their old age with the peace of mind that a financial security net can provide. This can also allow individuals to leave money for their children and grandchildren to develop their legacy.