1. RETIREMENT MISTAKES INVESTMENT AND TAX PLANNING TAMMY FLANAGAN RETIREMENT BENEFITS SPECIALIST MAXIMIZING YOUR FEDERAL RETIREMENT BENEFITS WWW.TAMMY@NITPINC.COM

2. TAMMY FLANAGAN – FEDERAL BENEFITS SPECIALIST PRESENTER Webinars and Seminars www.nitpinc.com http://www.fers-route-to- retirement.com/webinar/ Pre-Retirement Mid-Career New Employee Radio Co-Host: For Your Benefit www.federalnewsradio.com WRITER www.narfe.org Feature Columnist Webinar Presenter www.govexec.com Weekly Column  “Retirement Planning” Retirement Readiness Webinar on June 16 th ! Send me an email for the link!

4. https://www.youtube.com/user/TSP4gov

5. MISTAKE #1: AVOIDING RISK AND PLAYING IT TOO SAFE

7. RISK

8. Equities : C, S, and I funds are essential For a diversified retirement portfolio (mix of investments) The key to investing for and during retirement isn’t to avoid risk, but to diversify it. Due to rising life expectancies, retirement can last 30+ years

9. https://www.youtube.com/user/TSP4gov

10. IS THIS A DO-IT-YOURSELF PROJECT? OR THIS IS A DO-IT-YOURSELF PROJECT!

11. MISTAKE #2: WHO CAN WE TRUST TO HELP US?

14. MonthL IncomeL 2020L 2030L 2040L 2050G FundF FundC FundS FundI Fund 2014 Jun0.58%1.19%1.52%1.77%1.96%0.19%0.14%2.07%4.45%0.99% Jul(0.26%)(0.97%)(1.34%)(1.63%)(1.86%)0.19%(0.19%)(1.37%)(4.38%)(1.95%) Aug0.84%1.64%2.07%2.40%2.61%0.20%1.12%4.01%4.98%(0.14%) Sep(0.42%)(1.36%)(1.84%)(2.18%)(2.50%)0.18%(0.58%)(1.40%)(5.10%)(3.82%) Oct0.61%1.09%1.36%1.58%1.70%0.20%0.96%2.45%4.11%(0.63%) Nov0.55%1.04%1.27%1.42%1.55%0.17%0.74%2.70%1.33%0.51% Dec(0.04%)(0.50%)(0.67%)(0.76%)(0.94%)0.18%0.21%(0.24%)0.99%(4.13%) 2015 Jan(0.08%)(0.58%)(0.83%)(1.02%)(1.18%)0.18%2.13%(2.99%)(1.85%)1.19% Feb1.19%2.95%3.80%4.39%4.99%0.13%(0.91%)5.75%6.05%5.97% Mar(0.07%)(0.44%)(0.58%)(0.64%)(0.76%)0.16%0.47%(1.57%)1.24%(1.43%) Apr0.37%0.81%0.95%1.00%1.16%0.15%(0.28%)0.96%(1.50%)4.11% May0.30%0.50%0.62%0.72%0.78%0.17%(0.26%)1.29%1.84%(0.42%) YTD1.72%3.25%3.96%4.43%4.97%0.79%1.13%3.26%5.71%9.59% Last 12 mo

17. MISTAKE #3: FOCUS ONLY ON ACCUMULATION

18. How much of my income will come from… FERS/CSRS? Social Security? Other sources? … at my 1 st Eligibility for CSRS or FERS? 5 years later? Are there any other milestones? HOW MUCH DO I NEED FROM TSP TO REACH MY GOAL? How much of my income will come from… FERS/CSRS? Social Security? Other sources? … at my 1 st Eligibility for CSRS or FERS? 5 years later? Are there any other milestones? HOW MUCH DO I NEED FROM TSP TO REACH MY GOAL?

19. WHAT DO YOU NEED THE TSP TO DO FOR YOU?

20. THRIFT SAVINGS PLAN

21. EXAMPLE OF PARTIAL WITHDRAWAL

22. EXAMPLE OF FULL WITHDRAWAL May change amount

23. REQUEST FOR PARTIAL WITHDRAWAL TSP-77 23

24. REQUEST FOR FULL WITHDRAWAL TSP-70 24

25. MONTHLY PAYMENTS

26. MONTHLY PAYMENTS: LIFE EXPECTANCY

27. MONTHLY PAYMENTS: ANNUITY

28. 6% Rate of Return

29. TSP RETIREMENT INCOME CALCULATORS WWW.TSP.GOV WWW.TSP.GOV

30. ONE MINUTE VIDEO

31. BONUS MISTAKE: FORGETTING ABOUT TAXES!

32. ORDINARY INCOME TAX: 2015 FEDERAL TAX BRACKETS RateSingleMarried (Joint Return) 10%$0 - $9,225$0 - $18,450 15%$9,225 – $37,450$18,450 - $74,900 25%$37,450 - $90,750$74,900 - $151,200 28%$90,750 - $189,300$151,200 - $230,450 33%$189,300 - $411,500$230,450 - $411,500 35%$411,500 - $413,200$411,500 - $464,850 39.6%$413,200+$464,850+

33. Other IRS Publications: Credit for the Elderly or the Disabled Pension and Annuity Income Contributions to Individual Retirement Arrangements (IRAs) Distributions from Individual Retirement Arrangements (IRAs) General Rule for Pensions and Annuities

34. SOCIAL SECURITY MAY BE TAXABLE Provisional Income: adjusted gross + tax-free interest + 50% of Social Security benefit

35. Kiplinger State by State Tax GuideKiplinger State by State Tax Guide/

36. Kiplinger State by State Tax GuideKiplinger State by State Tax Guide/

37. MARITAL STATUS If you get married, get divorced, or become widowed as a retiree, you may need to change your: Survivor benefit electionSurvivor benefit election for your retirement benefit. Health insurance coverageHealth insurance coverage. Beneficiary designation forms for FEGLI, CSRS or FERS, and TSP.FEGLICSRSFERSTSP Social Security benefits payable to your new spouse or from your new spouse.to your new spousefrom your new spouse If you get married, get divorced, or become widowed as a retiree, you may need to change your: Survivor benefit electionSurvivor benefit election for your retirement benefit. Health insurance coverageHealth insurance coverage. Beneficiary designation forms for FEGLI, CSRS or FERS, and TSP.FEGLICSRSFERSTSP Social Security benefits payable to your new spouse or from your new spouse.to your new spousefrom your new spouse

38. MARITAL CHANGES: CSRS AND FERS