Thiago Glieger

The Thrift Savings Plan now allows in-plan Roth conversions, and the questions have started rolling in. “How much can I convert while staying in the same tax bracket?” “I don’t want to leave taxable money to my kids. What should I be doing each year?” “Should I just fill up the 22% tax bracket with conversions?” All of these sound like reasonable questions, and this is where people get into trouble.

There are two parts of retirement planning that, if you get them wrong, can have a major impact on your long-term retirement success. I’ve seen all the common rules of thumb over the years. The 4% rule. A 60/40 portfolio. Variations of “set it and forget it.” Many of these are helpful starting points, but there are a couple of areas where these shortcuts break down quickly. And unfortunately, they tend to be the ones that matter most. The hard part? These concepts are simple, but the execution is not.

OPM’s new Online Retirement Application (“ORA”) is in full force, and many federal employees leaving service have felt the challenges of figuring it out by themselves. Earlier this year, I was lucky to add to my team a seasoned expert from OPM’s retirement services. They bring the “inside baseball” at a time when our clients and the federal community need it the most. This article will focus on a few of these details. On paper, ORA represents real progress.