Retirement Planning Tailored For Federal Employees

Planning for Federal employees requires specific understanding of their unique benefits.

We blend technical knowledge of the federal retirement systems with personalized financial planning.

Here’s a step-by-step guide to what we do for our employees of Federal service:

1. Understand the Federal Retirement Systems

There are three main retirement systems, and knowing which one applies is critical:

FERS (Federal Employees Retirement System) – most federal employees hired after 1984
CSRS (Civil Service Retirement System) – for employees hired before 1984
CSRS Offset – a hybrid of CSRS and Social Security

Each system has different rules around pensions, Social Security, and contributions.

2. Evaluate the Three-Legged Stool of Federal Retirement

For FERS employees, retirement income typically comes from:

FERS Pension – Defined benefit plan
Social Security – Based on full career earnings
Thrift Savings Plan (TSP) – Defined contribution plan

We help to optimize all three and help them work together smoothly.

3. Deep Dive into the FERS Pension

Help FERS employees:

Understand how their High-3 salary, years of service, and multiplier (1% or 1.1%) affect pension.
Explore early retirement options like MRA+10, VERA, or discontinued service retirement.

Decide between immediate, deferred, or postponed retirement.

4. Maximize the Thrift Savings Plan (TSP)

Advise on asset allocation and lifecycle funds based on risk tolerance and retirement timeline.
Encourage contributions to get the 5% government match.
Compare traditional vs. Roth TSP contributions.
Discuss TSP withdrawal strategies, including RMDs, annuity options, and rollovers.

5. Address FEHB, FEGLI, and Other Benefits

These federal benefits have major implications for retirement planning:

FEHB (Health Insurance): Help them maintain FEHB into retirement and coordinate with Medicare.
FEGLI (Life Insurance): Review options and alternatives in retirement.
Long-Term Care Insurance: Evaluate need and costs through FLTCIP or private options.

6. Social Security Integration

FERS employees are fully covered; plan when to claim.
CSRS employees may face the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO) — explain how these reduce benefits. (NOTE: WEP and GPO were recently repealed).

7. Tax Planning

TSP withdrawals are taxable (except Roth).
Pensions and Social Security may be partially taxable.
Use tax bracket management, Roth conversions, and Qualified Charitable Distributions (QCDs) for optimization.

8. Retirement Timing and Survivor Options

Help decide on the best retirement date based on leave accrual, annuity start date, and COLA timing.
Evaluate survivor benefit elections (which reduce the pension in exchange for spousal protection).

9. Provide Projections, Scenarios, Updates, and Communicate Regularly

Use of specialized software and spreadsheets to:

Project retirement income from each source
Estimate taxes and net income
Model different retirement ages and spending levels
Federal rules can change. Stay informed about OPM updates, TSP rule changes, and legislative proposals.
Provide annual reviews, especially 3–5 years before retirement.

ProIncome

Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and ProIncome are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. The content of this website is provided for informational purposes only and is not a solicitation or recommendation of any investment strategy. Investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives.

Privacy Policy

ProIncome operates www.proincomeplan.com, which is a retirement and financial information website.

This is to inform website visitors regarding our policies with the collection, use, and disclosure of personal information if anyone decides to use our services.

If you choose to use our services, you agree to the collection and use of information in relation to this policy. The personal information we collect is used for providing and improving our services. We will not use or share your information with anyone except as described in this policy.

What information do we collect from you and about you?

To serve our client needs, ProIncome collects information to satisfy certain legal and regulatory requirements, while other information is collected so that we can service your account effectively. Examples of the information that we collect includes:

• Information from your account application and other forms, such as name, address, Social Security number, telephone number, employment information, income, net worth, investment experience, and other information to service your account effectively. We may also collect information from consumer reporting agencies.

• Information about your financial transactions, including securities purchased and sold, fund transfers, account balances, and other account activities.

To whom do we disclose your information?

ProIncome does not sell your personal financial information to anyone. However, we do disclose your personal information to third parties or outside companies that help us process your transactions or service your account. One such company is the clearing firm which processes your transactions and acts as the account custodian. We may also provide information to outside service providers that help administer your accounts. Any outside company or third party provider must limit their use of your information to the purpose for which it was provided.

ProIncome may also provide your personal information when permitted or required by law or regulation. Examples include providing information in response to a subpoena or court order, to cooperate with regulators, governmental authorities or law enforcement authorities, or in response to a request from a consumer reporting agency.

Outside of these circumstances, we will not provide your personal information to third parties unless you have specifically asked us to do so.

What do we do to protect your personal information?

We restrict access of your personal financial information to personnel who require that information to service your business. All employees are trained regarding the policies and procedures encompassed by this privacy policy. We maintain physical, electronic and procedural safeguards to guard your personal information. This privacy policy applies to all of our current and former clients. If in the future, this privacy policy needs to change for any reason, we will provide you with written notification of the change, allowing you the opportunity to opt-out.