A few years ago, we wrote a booklet describing the various retirement options to the state of Florida employees. We recently updated this booklet, The State of Your Retirement Third Edition by Joel J Garris. Over the next few weeks we will be posting individual chapters as a blog post. If at any time you would like a completed copy of the booklet, you can download it from our website at https://www.nelsonfinancialplanning.com or call the office at (407)629-6477 for a printed copy.

Introduction

 

The purpose of this booklet is to provide a single source resource to state employees who are nearing retirement. If you are a member of the Florida Retirement System (FRS), you have seen a lot of changes to your retirement options over the past few years. The state of your retirement has changed dramatically and what made sense in the past often does not make sense today.

 

We regularly meet with state employees to help them figure out these ever changing options. These meetings generally focus on reviewing the pros and cons of your retirement choices to help you make an informed decision and are done as a free service to you. To learn more about us, please review the section “What Makes Nelson Financial Planning Different?” on page 35 of this booklet.

 

While you are working, we keep you informed on a continuous basis by mailing FRS Update letters every few months or so. We do not charge for this ongoing service. Simply put, keeping you informed about the latest legislative changes and market performance while you are still working is somewhat straightforward. It also gives you an opportunity to try us out before you’ll really need us in retirement.

 

As a current employee, your options have changed a lot since 2008. These changes fundamentally shift your retirement options. Be sure to read the section on page 15 entitled “Shifting Sands for Current Employees – The Litany of Changes since 2008”.

 

Once you retire, things get a lot more complicated. Our focus shifts to providing personalized retirement income strategies to meet your unique retirement expenses and tax liabilities. These income needs are ever changing and the tax implications in retirement are very important. There are a variety of accounts available as a state employee and each has different tax implications depending on your age and job. Your investment focus also shifts to a more growth and income oriented mix which is very different from the approach used while working. Simply put things get a lot more complicated in retirement and that’s when our customized advice applies. Be sure to read the section on page 27 entitled “Retirement Income – Your Age and the Account Matters.”

 

This third edition of the booklet not only updates your retirement options within the Florida Retirement System but also adds a separate chapter on two important topics not previously discussed. First, there is a chapter now on deferred compensation or 457 plans. These accounts are funded solely from your pay check and provide flexible options for usage in retirement. Second, the chapter on the Health Insurance Subsidy details this often forgotten benefit of being a state retiree. This is a valuable benefit that helps to offset the growing cost of health insurance and is available to every retiree regardless of whether they retire under the Pension or the Investment Plan.

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