Insights

One of the most common surprises retirees face is learning that their Social Security benefits may be taxable. Many clients come to me with the assumption that Social Security is simply a return on a lifetime of contributions, money they already paid taxes on, and therefore should be tax-free. Unfortunately, that is not how the IRS sees it.

You chose a career in federal service. That means you have access to one of the most comprehensive retirement systems in the country — a three-legged stool that, if you understand it and use it well, can give you a genuinely secure retirement. The problem is that many federal employees spend decades accumulating benefits they barely understand. Whether you're five years into your career or approaching your final stretch, here's what you actually need to know.

Medicare is more complex than most people expect. Many people approaching retirement assume Medicare works like a single, simple insurance policy; you turn 65, you sign up, and you're covered. The reality is quite different. Medicare is a multi-part system, and the choices you make at enrollment can affect your costs, access to providers, and financial exposure for years to come. Knowing how each piece works will put you in a much better position when enrollment time arrives.

No one likes to think about it. The idea of preparing your spouse for your death or incapacity feels uncomfortable at best and morbid at worst. But from a financial planning perspective, one of the greatest gifts you can give your partner is clarity.

One of the most important retirement income decisions you will ever make is when to begin your Social Security benefits.