The state of your estate

Sooner or later, we’ve all got to go. Whether your departure is to retirement, relocation or you leave office in a reclining position, when it’s over, it’s over. Retirement could last anywhere from a matter of days to decades. In the obituary section of The Washington Post, it is not unusual to read about people — many of them former feds — who were retired longer than they actually worked. When you leave, it may be for the best time of your life, or the most trying. Nobody knows.

But whatever lies ahead and whatever happens — good, bad or indifferent — it pays to plan ahead. As in having a plan. Doing the right/smart thing now means a payoff for you, for your spouse/significant other and your children. And peace of mind. The way you get your financial ducks in a row can be a major gift — emotionally as well as financially — for those who may wind up taking care of you.

Whether you are a lifer or are just doing time in government to make contacts and build your resume, knowing where you are is the best way to get to wherever you are going. Or think you are going.

Where to start? How about knowing how much you are worth on the hoof. Dead or alive. Right now. And in the future.

Tom O’Rourke is a Washington area attorney who specializes in estate planning. Many of his clients are active and retired federal workers. He says that many feds are worth a lot more than they think. In addition to maybe owning a paid up home, they will have an annuity (pension) for life. “For all federal retirees, the starting point is the fact that they are entitled to an annuity for life that is indexed for inflation,” he said.

A growing number of feds and federal couples now have 401(k) balances exceeding $1 million. The vast majority did it the hard way. They started investing from day one, maxed out their contributions and rode out the market in good and bad times. The average TSP millionaire is not a fat cat, but rather somebody who invested wisely and steadily for an average of 27.8 years.

Whatever you have, you may be worth a lot more than you think. So do you have an estate plan? Does it include beneficiary designations and property ownership arrangements? Do you know the difference between a will and a trust? And which is best for you? How about powers of attorney? There are several kinds and you may need all of them. How to find out.

Listen to our Your Turn radio show today at 10 a.m. EDT. Tom O’Rourke is the only guest and you are the only subject. The show is streaming live at FederalNewsRadio.com. In the D.C. area, you can also listen on 1500 AM. If you have questions for Tom, you can call in during the show at 202-465-3080 or email me the questions (before show time) at mcausey@federalnewsradio.com.

This is a good show to tell friends and coworkers about. If you can’t listen today, or want to hear it again and refer a friend, all the shows are archived on the Your Turn homepage.

Nearly Useless Factoid

By Michael O’Connell

Because so many players from the Pittsburgh Steelers and the Philadelphia Eagles left to join the armed forces during World War II, the two NFL teams merged during the 1943 as the “Phil-Pitt Combine.” Their unofficial name was the “Steagles.”

Source: Wikipedia

Read more of Mike Causey’s Federal Report

Related Stories

Comments

Your Turn with Mike Causey

WEDNESDAYS at 10 A.M.

Learn about everything from pay, benefits and retirement, to buyouts, COLAs and pay freezes. Dial 667-930-9385
to listen live from any phone. Follow Mike on Twitter and send him an email with your questions and comments. Subscribe on Apple Podcasts or Podcast One.

THRIFT SAVINGS PLAN TICKER

Jan 20, 2022 Close Change YTD*
L Income 23.1883 -0.0487 5.42%
L 2025 11.9651 -0.0472 9.75%
L 2030 42.1747 -0.2353 12.37%
L 2035 12.6589 -0.0777 13.43%
L 2040 47.8799 -0.3207 14.51%
L 2045 13.1065 -0.0942 15.40%
L 2050 28.7010 -0.2205 16.34%
L 2055 14.1138 -0.1333 19.90%
L 2060 14.1136 -0.1332 19.90%
L 2065 14.1134 -0.1332 19.90%
G Fund 16.7510 0.0008 1.38%
F Fund 20.4699 0.0225 -1.46%
C Fund 67.7127 -0.7512 28.68%
S Fund 74.7229 -1.1189 12.45%
I Fund 38.6721 -0.1973 11.45%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.