A second retirement is a concept that involves veterans who retire from the military and move on to a second career which requires planning for a second retirement. Many service members choose to pursue fulfilling careers after their military service. Having a second retirement requires some planning though.
Working during your retirement impacts several details of your retirement plan. These include your retirement income, health benefits, taxes, investing opportunities and more. Understanding these implications is essential to creating a retirement plan that helps you achieve your goals. A financial advisor can help you understand your options and create a plan for your second retirement.
When it comes to planning for a second retirement, you need to consider when your second retirement will begin. Since it likely won’t be 30 years in the future, you need to consider how these time restraints will affect your retirement savings plan.
As with a traditional retirement, you need to plan for your spending needs. For those who have already gone through a military retirement, this requires some special considerations. You likely already have good retirement savings started so now it’s time to build on that.
Consider what you will need for annual spending. Will you still have a mortgage? What health care expenses will you have? Do you want extra savings for travel and leisure activities? These considerations and more will determine how much you need to have saved by the time you retire. You also need to account for any benefits you will receive from Social Security or VA Disability Compensation.
Consider Current Retirement Savings
Having a second career presents you with some unique opportunities. Some of those include what you do with your current retirement accounts. Should you keep the plan, transfer it, or choose something new? You likely have several options to consider.
Working with a financial advisor is a great way to make sure you are investing properly. A balanced portfolio is an essential step in your retirement planning. Since your time frame is different now, your risk tolerance will also be different. A financial advisor can help you understand your opportunities, assess your risk tolerance, and make any necessary changes to your portfolio to reflect your new goals.
Federal Retirement Benefits Planning
Advice about retirement strategies, plans, and benefits is unique to government employees on the GS or GG scales. The Federal Employees Retirement System (FERS) includes a pension, Social Security, and a thrift savings plan (TSP).
If you were hired before January 1, 1984 you may participate instead in the Civil Service Retirement System (CSRS), which provides retirement, disability, and survivor benefits. If you haven’t had Social Security taxes deducted from your paycheck, you won’t be eligible to receive benefits unless you’ve earned them through another job.
However, not all financial planners understand the different retirement and investment options for federal employees, so it is important to find a CERTIFIED FINANCIAL PLANNER®in Northern Virginia familiar with your different options to maximize your retirement benefits.
Estate Planning for Military Retirement
A well-rounded retirement plan will include estate planning. Each aspect of estate planning requires expertise from different professionals. Lawyers, accountants, financial planners, insurance agents and more come together to create a comprehensive plan for you. This ensures that your assets are distributed properly.
Tax planning is a crucial part of the estate planning and retirement process. Understanding the tax implications of leaving assets to family members or charity is important. A financial advisor can help you understand the legalities and choose the option that best suits your needs.
Military and Federal Government Retirement Planning in Northern Virginia
Creating a comprehensive retirement plan is challenging, adding a second retirement into that can be overwhelming. The goal is to strike the perfect balance between realistic expectations and your desired standard of living. The professionals at Argent Bridge Advisors can help you create a flexible portfolio to reflect the changing market conditions and your evolving retirement objectives. Contact us today to learn more!