Federal benefits expert, Chris Kowalik of ProFeds, shares her approach to engaging federal employees in her pre-retirement workshops. It’s all about perspective, and her ability to be direct in order to help federal employees have a clear understanding of how their benefits change over time.
Establish your emergency fund
When we get in a financial jam, it is easy to make some terrible decisions. We rack up high-interest credit card debt, or borrow from retirement accounts like the Thrift Savings Plan.*
During our retirement workshops, we recommend federal employees have roughly 6 months worth of expenses in the bank.
Establishing an emergency fund is simple – you can do it at your local bank or online.
*BONUS: Did you know that when you borrow from the Thrift Savings Plan that you pay taxes TWICE? When you repay the loan, you pay it with after-tax money (meaning you pay tax on the repayment amount). Then when you take the money out in retirement to use it, it is taxed again. Ouch!
