5 Common Mistakes Federal Employees Make Regarding Retirement

Many Federal employees make these 5 fatal mistakes when planning their retirement. Read what these mistakes are and how we can help you avoid them.

The average retirement age among federal employees is 61. You probably have a few more years before you retire, but that does not mean you should not be thinking about retirement yet. If you want to live comfortably when you retire, you should start planning now. Avoid these retirement mistakes.

Avoid These 5 Retirement Planning Mistakes

1. Carrying Debt Into Retirement

Carrying debt or acquiring debt into retirement is a bad move many Federal employees make. Ideally, your retirement income should be allotted to your daily needs, not for paying off debt. If you are in a financial emergency that your emergency fund cannot cover, choose a low-cost loan, such as Access Loans’ employee loan programs, that you can pay off before you retire. You’ll also enjoy manageable monthly payments, so you can still save up while paying your debt.  

2. Not Saving Early On

Federal employees have the advantage of the Thrift Savings Plan (TSP) or a Roth TSP where they can contribute a percentage of their salary before-tax. Agencies match employees’ contribution to the TSP of up to 4% of their gross pay. For FERS-covered employees, the TSP and its tax-free counterpart, Roth TSP, will serve as their retirement income, so Federal employees should maximize this benefit as early as possible. 

3. Tapping Into Retirement Accounts Early

A common mistake is excitedly squandering one’s retirement income upon retirement. While you are entitled to using your retirement income, some planning is necessary to truly maximize these your income well into your old age. For instance, you can file for Social Security as early as 62 but you’ll receive maximum benefits if you wait until full retirement age at 66 or 67 depending on the year you were born. Plan when it is best to withdraw from your accounts to maximize your retirement income. 

4. Poor Tax Planning

Taxes are another factor Federal Employees should consider because it can eat up a substantial percentage of your retirement income. As mentioned, you have the option to convert to Roth TSP, which for many makes sense when you take taxes into consideration. A Roth TSP lets you have a tax-free retirement income, so it is one great option if you expect to be in a higher tax bracket upon retirement. 

5. Not Planning For Healthcare Costs

Your retirement age will most likely be riddled consumed with various healthcare needs, so not planning for future healthcare costs is not a good idea at all. Check how you can stay covered by Federal Employees’ Health Benefits (FEHB), but you should also consider maintaining health insurance, and having emergency funds to tap into in the future.

It’s never too early to plan for your retirement. Start planning for your future as early as now!

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NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

How To Become Financially Fearless

Eliminate your financial fears with these practices. Stop living your life in fear. You can become financially fearless with these 6 simple tips and with some boost from our affordable employee loan programs. 

 

Since the 1950s, the world has experienced four recessions —five if we include the recession brought about by the pandemic. Recessions usually leave families in uncertainty, and creates a culture of fear surrounding their finances. Today, many adults live their lives in fear financially. Follow these tips to achieve not just financial stability, but financial confidence.

6 Tips For Becoming Financially Fearless

The key to becoming financially fearless is having confidence in your assets, which you can achieve through these practices.

 

1. Stick To A Budget

The first step toward financial fearlessness is becoming disciplined with your spending. Keep your daily expenses in check by avoiding impulsive spending. If you can maintain a low monthly expense, you will have more to allot for your savings and other activities toward financial fearlessness.

 

2. Manage Your Debt

Are multiple small debts eating up most of your income? Debt consolidation is one efficient way to manage your various types of debt. With debt consolidation, you pool all your loans and pay them by getting a new affordable loan. You essentially replace multiple loans with just one loan. Don’t apply for a high-interest loan, consolidate your debt through Access Loans’ affordable employee loan program. 

 

3. Use Credit Cards Wisely

Credit cards are useful for certain instances, but credit card debt can easily pile up when not managed. If you have a habit of buying more than you can afford, you will be paying more than twice the amount you bought. You can consolidate your credit card debt as well, and start using your credit wisely.

 

4. Invest In Another Income Source 

Investment is another way to generate money in addition to your regular source of income. If you have extra funds, don’t let them sit in the bank—invest them in a high-interest bank account or something similar. Alternatively, you could invest in a business that could bring in extra income that you can, in turn, invest further.

 

5. Get Insured

Insurance protects you from various expenses, such as accidents, natural disasters, and various lawsuits. Insurance helps you cover expensive damages, so you don’t need to get a new loan or sell other assets you own. Knowing you have insurance to rely on will allow you to live and spend more freely.

 

6. Start A Retirement Plan

Retirement is something everyone should prepare for. To do so, however, does not mean you should hoard every penny. Invest in tax-advantaged or high-interest accounts like 401(k) or Roth IRAs that will ensure you have funds when you grow old. Investing in a retirement plan will help ease your mind about your financial future.

 

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NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

The 4 Aspects Of Personal Finance

This blog covers four things you need to know about personal finance!

You don't need to be a finance expert to achieve financial stability. You only need to learn the basics aspects of personal finance and apply these to your life. Start by avoiding high-interest loans. When financial emergencies happen, trust a loan provider that offers affordable employee loans and doesn’t charge any prepay fees.

Four Most Important Aspects Of Personal Finance

1. Cash Flow Management

Cash flow management is simply how you manage the cash that comes in and out of your wallet (or bank account). It's the system for how you manage your money on a daily basis. You should know how much you spend daily,  where you spend it, and make sure you don't go over-budget on any expense. Cash flow management will help you be more conscious of how you spend your money, so that you don't end up burning through your budget in one week.

How to do it: Set up an excel file or notebook where you lay down your budget and map out your expenses.

2. Consumer Debt Reduction

The average American was $92,727 in debt in 2020. Consumer debt includes credit card, retail credit card, student loans, personal loans, mortgaged, auto loans and lease, home equity loans, Home Equity Line of Credit (HELOC), etc. Managing and, ultimately, reducing consumer debt is a priority for many because it is a major key towards financial freedom.

There are many ways to reduce debt. The first method is the "snowball method" wherein you target to pay off the smallest debt. You use extra funds toward paying off the smallest debt while paying the minimum for other debts. Repeat the process until you pay off your largest debt. The second method is the "high-interest rate method" where you pay off the debt with the highest interest rate—which is more costly in the long run—and then go down the line to the debt with the lowest interest rate. Whichever method you choose, it's important to have a plan and stick to it.

3. Asset Protection

Even if you don't own much, you still should do the minimum to protect your assets. Protecting your assets saves you from potential financial devastation in case of disaster. Various types of insurance help you mitigate risk; they payout money to help you cover damages and losses caused by various disasters.

Health insurance, life insurance, homeowners or renters insurance, flood insurance, car insurance, or an umbrella insurance are the most basic types of insurance an individual should carry to protect their assets.

4. Long-term Planning

Long-term financial goals are often left unachieved because of a lack of planning and dedication. However, if you want to succeed financially, you should take your long-term goals seriously. Start by determining what your long-term goals are—debt elimination, buying a house, investing in a business, or planning for retirement? For some, defining what financial independence means for them is the first step. From there, determine the steps you need to take to accomplish these goals. Furthermore, writing down these goals and tracking your progress will help you stick to your plans.

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

Affordable Loans to Spur You Forward

Improve your finances with an affordable loan with us! Want to save up or cover an emergency expense but don’t know where to start? Discover how our Federal Employee Loan Program can help you tackle financial challenges.

Today’s generation of employees struggle with multiple financial challenges that make it difficult to achieve financial stability and reach their financial goals. Younger generations, in particular, millennials and gen Z, are saddled with student loans, credit card debt, wage stagnation, and unhealthy financial management practices. If you are struggling financially, here’s how our Federal Employee Loan Program can help you get your finances in order.

How To Use Allotment Loans To Improve Your Financial Status

• Consolidate Credit Card Debt:

While credit cards don’t often require a large monthly payment, credit card debt can balloon over a few years due to high interest rates. For this reason, it is not a good idea to let your purchases go unpaid for long. If you have a high utilization rate on your cards, you can pay off your credit with an affordable loan. From there, you can start clean and manage your credit cards more effectively.

 

• Start An Emergency Savings:

If you don’t have emergency savings, you are not alone. But this doesn’t mean you should be complacent. Having emergency savings will help you pay for unexpected expenses, like medical bills, without it causing too much stress. An affordable loan can help you pay for emergency expenses and keep your  savings account intact. All you will have to do is add a little to it every month. Having an emergency savings is one of the first major steps toward financial stability.

• Improve or Establish Your Credit Score:

While most debts are bad for your credit, Access Loans’ allotment loans may actually help you improve or establish your credit. Access Loans reports all loan payments history to the three major credit bureaus. On-time payments may improve credit scores and can help you build your credit.

• Invest In Another Source of Income:

If you have an idea for another source of income, don’t wait until you have enough capital. Fund your business or any other venture with an affordable loan. Another source of funding will help stabilize your income so you can achieve your financial goals faster.

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

How Instant Funding Can Help You Out of a Jam

Allotment loans could be your best choice during a financial emergency!

In a jam and need money? You can make a positive financial decision by applying for an allotment loan. Discover how allotment loans can help you by reading below.

For some Americans, their paycheck is barely enough to cover their monthly expenses. So, if something unexpected happens—your car breaks down, your child gets sick—you probably don’t have enough money to cover the additional expenses. Allotment loans can help you get out of any type of financial jam without getting into serious debt. Find out how below. 

What Are Allotment Loans?

An allotment loan can be used for any expense or financial need. Some allotment loans have fixed interest rates, require no collateral, and are paid conveniently through paycheck deductions. To pay these types of loans, employees are required to allot a specific  amount from their paycheck each pay period. This means that the payments for your loan are automatically deducted from your paycheck every month or week until you have paid off the loan - this is based on your employer payroll cycle.

Many US employees have used allotment loan programs for various needs including starting an emergency fund, tuition fees, medical bills, as well as various financial emergencies.

Allotment Loans Versus Conventional Loans:

Allotment loans offer numerous benefits compared with other types of loans. Below are the benefits of applying to allotment loans vs. traditional conventional loans.

1. Allotment Loans May be Available For Those With Bad Credit

Companies like Access Loans, do not affect your FICO credit scores during the application process. This means that employees applying for loan programs do not need to worry about a negative impact to their FICO credit score. When you apply for an emergency loan, the Access Loans team reviews your credit, employment history, and other important factors to determine eligibility. This alternative lending approach helps them offer emergency loans to customers who are currently excluded from traditional forms of credit available.

2. Easy Application Process

Skip the long and-complicated process with old-school lenders. In most cases, when applying for allotment loans, you don’t need to present as many documents as you do for traditional lenders. In many cases your proof of identification and basic personal information may suffice. Also, the application process usually takes minutes, making it perfect for urgent financial needs.

3. Competitive Annual Percentage Rate (APR)

Aside from competitive interest rates, companies like Access Loans do not charge hidden fees, and you can the benefits from a low Annual Percentage Rate (APR). Many lenders offer low interest rates but have so many hidden charges that you still end up paying a lot. Access Loans is transparent about how much you will pay every month.

4. Manageable Payment Terms

With Allotment Loans, if you can afford a higher salary deduction, you may opt for a shorter period; but if you want a smaller deduction, you can choose the longer period. This way, you can make sure that the loan remains manageable. In many cases you don’t pay any prepayment penalties or fees; therefore, if you are able to pay the loan before the loan term ends, you won’t get charged extra fees. 

5. Improve Your Credit Score

For many, an unexpected expense means another point deduction on their credit score. This is not the case when you borrow with Access Loans. Access Loans  will not negatively impact your FICO credit score upon application, but they will report all loan payments history to the three major credit bureaus. On-time payments may improve your credit scores and can help you build your credit.

Learn more about allotment loans for employees by visiting Access Loans.

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).