Financial Planning for Federal Employees in St. Louis

As the son of parents who collectively dedicated over 52 years to the Federal Bureau of Prisons and served 62 years in the U.S. Army, Michael Stalka has a personal commitment to serving those who have dedicated their careers and lives to serving our country. With a deep understanding of federal benefits and retirement planning, Michael has earned the designation of Federal Retirement Consultant (FRC℠), empowering him to guide federal employees through the unique landscape of federal retirement and benefits programs.

Federal Retirement Benefits Guidance

Navigating federal retirement can be complex. We specialize in helping federal employees understand their benefits and make informed decisions about their future. Our expertise includes:

CSRS & FERS Retirement Systems: Personalized retirement planning under the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS).
Thrift Savings Plan (TSP): Strategic advice on TSP investments, withdrawals, and rollovers.
Social Security Retirement and Spousal Benefits: Guidance on optimizing Social Security benefits in conjunction with federal retirement.
Federal Employee’s Health Benefits Program (FEHB): Assistance with healthcare plan options and coordination with Medicare.
Federal Employee’s Group Life Insurance (FEGLI): Analysis and recommendations for life insurance coverage.
Federal Employee’s Dental & Vision Insurance Program (FEDVIP): Support with selecting the right dental and vision plans.
Federal Long-Term Care Insurance Program (FLTCIP): Help in understanding long-term care coverage options.
Medicare Guidance: Assistance with Medicare enrollment and planning.
Service Credit Issues for Civilian and Military Service: Advising on buying back military time and addressing service credit complications.

Comprehensive Financial Planning & Investment Management

We believe in a holistic approach to financial planning, where every decision contributes to a well-rounded retirement strategy. Retirement planning can be thought of as cultivating a variety of financial "crops" that mature at different times. Our services include:

Investment Account Analysis: Including TSPs, 401(k)s, IRAs, Roths, SEPs, Simples, 403Bs, and other retirement plans.
Retirement Income Distribution Strategies: Creating a sustainable income strategy measuring distribution rates in retirement.
Required Minium Distributions (RMDs): We will identify when you are required to disburse taxable income and the potential tax liability.
Qualified Charitable Distributions (QCDs): Explain how you can reduce your taxable income by simply donating to charities near and dear to your heart.
Pension Guidance: For those eligible for federal, state, and private pension plans.
Social Security Optimization: Strategies to maximize benefits based on your specific income needs and life expectancy.
Cash Flow Management & Budgeting: Ensuring a steady income and planning for unexpected expenses.
Comprehensive Financial Planning: Crafting a personalized plan that covers all aspects of your personal and financial life.
Behavioral Finance Coaching: Helping you manage financial decisions and behavior during market fluctuations.
Education Planning: Planning for future educational expenses including children and grandchildren.

Tax Planning

Tax efficiency is a vital component of financial planning, especially for federal employees facing complex tax considerations in retirement. Our tax planning services include:

Roth Conversion Analysis: Evaluating whether converting to a Roth IRA is beneficial.
Tax Loss Harvesting: Strategies to minimize taxable income.
Tax Mitigation and Avoidance: Methods for reducing tax liability.
Inheritance Tax Planning: Structuring assets to reduce inheritance taxes.
IRMAA (Medicare) Tax Strategies: Minimizing income-related Medicare premium adjustments.

Please note: Four Seasons Wealth Management does not provide tax preparation or accounting services. We recommend consulting a professional for your tax preparation needs.

Healthcare & Risk Planning Services

Healthcare costs in retirement can be significant and unpredictable. Our approach includes:

Medicare Planning: Guidance on enrollment and supplemental coverage.
Life & Disability Insurance Analysis: Reviewing and optimizing coverage for peace of mind.
Long-term Care Planning: Addressing the costs and risks associated with extended care needs.
Health Insurance Planning: Ensuring you have adequate coverage before and during retirement.

Why Choose Us?

Michael Stalka’s unique personal connection to federal service, combined with professional expertise in federal benefits, sets us apart in providing financial advice tailored specifically to federal employees. Our goal is to assist you in making informed decisions, facilitating a smooth transition into retirement, and planning for your financial future. Let us help you navigate your benefits and plan for a fulfilling retirement.

Federal Employee Retirement Planning Questions

Q. How do you calculate federal employee retirement?

Federal employees often rely on their retirement benefits to retire. Those benefits depend on three things:

How long have you worked
Your highest salary years
When you retire

The government calculates your "high-3" salary by averaging your three highest consecutive years of basic pay.

To calculate your benefits, you then multiply your years of service by 1% of your high-3 salary. That percentage increases to 1.1% if you retire at 62 or older with at least 20 years of service. For example, 30 years of service with a $100,000 high-3 average equals $30,000 per year.

Importantly, law enforcement officers, firefighters, and air traffic controllers get enhanced benefits. They receive 1.7% per year for the first 20 years, then 1% for each additional year.

Q. Is there a minimum retirement age for federal employees?

Yes, there is a minimum age, but it varies by retirement type. For regular federal employees, the absolute minimum age for voluntary retirement with an immediate annuity is your Minimum Retirement Age (MRA).

This ranges from 55 to 57, depending on your birth year:

Born before 1948: MRA is 55
Born 1948-1952: MRA is 55 plus 2 months for each year after 1947
Born 1953-1964: MRA is 56
Born 1965-1969: MRA is 56 plus 2 months for each year after 1964
Born 1970 or later: MRA is 57

This requires 30 years of service. With fewer years of service, you'd need to be older: 60 with 20 years, or 62 with 5 years.

Certain federal employees can retire even younger. Law enforcement officers, firefighters, and air traffic controllers can retire as early as age 50 with 20 years of service, or at any age with 25 years of covered service.

Q. Can a federal employee get disability and retirement?

Yes, a federal employee can receive disability benefits and retirement benefits, but not usually at the same time or in the same way. Here's how it works:

FERS Disability Retirement: Federal employees who become disabled before reaching regular retirement eligibility can apply for disability retirement. This provides income until you reach regular retirement age, at which point it automatically converts to a regular retirement benefit. Once you reach age 62, your disability retirement ends and you begin receiving your regular FERS retirement annuity instead. The calculation changes at that point based on your years of service.
Social Security Disability (SSDI): FERS employees can receive both FERS disability retirement and Social Security disability benefits, but the FERS benefit is reduced by the amount of SSDI you receive. Essentially, you won't get the full amount of both.
VA Disability: Federal employees who are veterans can receive VA disability compensation alongside their federal retirement or disability retirement without any offset. These are separate benefit systems.

If you're already eligible for regular retirement when you become disabled, you'd typically just retire normally rather than apply for disability retirement, since regular retirement usually provides better benefits.

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