Suppose you work for the Army, Navy, Air Force or Marine Corps, and you get one of the new, Defense Department-only $40,000 buyout offers. Is it worth it? Are you ready? Can you afford to leave earlier than planned? Imagine you are with the State or Interior departments, or even the Nuclear Regulatory Commission, and the choice is the traditional 1990s $25,000 buyout. Or maybe you have to go through the sometimes torturous, often messy and time-consuming reduction-in-force procedure. Again, the question is, what happens if your job disappears with or without a buyout or severance pay?
Many people have some sort of retirement plan. But it’s unlikely that many have a Plan B, in case the date when they retire or otherwise leave the payroll is advanced by a matter of years. And comes as a surprise with a window of only a few weeks to decide what’s best for you. We asked Tom O’Rourke, a specialist in federal employment law, and estate planning. Here’s his list:
Annuity — How much will it be after taxes and other withholdings?
Social Security — Does it make sense to take it as early as possible or to defer as long as possible?
Tapping into your TSP.
What are your options?
5. What do you plan to do after you retire? What does your spouse think of these plans?
6. Do you plan to downsize or move? If so, what is the impact on your taxes or your estate plan?
What, if any, changes need to be made to your existing estate plan (if you have one)?
Want more? Got questions? Listen to our Your Turn radio show today at 10 a.m. on Federalnewsradio.com or at 1500 AM in the D.C. area. Tom O’Rourke will be our guest and talk about what you should know, and maybe be doing, regardless of when you retire or leave government. If you have questions for Tom, send them to me before the show at: firstname.lastname@example.org.