Mario G. Taffo, Federal Benefits Consultant Interviewed on the Influential Entrepreneur Podcast Discussing Understanding FERS Benefits and Retirement Planning

Mario Taffo discusses understanding FERS benefits and retirement planning 

Listen to the interview on the Business Innovators Radio Network: Interview with Mario G. Taffo, Federal Benefits Consultant on Understanding FERS Benefits and Retirement Planning – Business Innovators Radio Network

In this episode of Influential Entrepreneurs, host Mike Saunders welcomes Federal Benefits Consultant Mario G. Taffo to discuss FERS benefits and retirement planning. Mario shares his personal journey into the financial services industry, highlighting how his father’s transition from the Navy to government service sparked his interest in understanding federal benefits. He emphasizes the critical need for education around retirement planning, noting a significant gap between HR departments and employees regarding benefit knowledge.

Federal employees are entitled to a comprehensive benefits package under the Federal Employee Retirement System (FERS). However, many remain unaware of the full range of options available to them. This lack of awareness can lead to missed opportunities for optimizing retirement planning and securing their financial future.

1. Pension: Every federal employee under FERS is eligible for a defined pension that provides a steady income stream throughout retirement. This pension can also be passed on to a spouse, ensuring financial security for loved ones.
2. Thrift Savings Plan (TSP): The TSP functions similarly to a 401(k) plan in the private sector, allowing employees to save for retirement. Unfortunately, many federal employees are unaware of the Roth option available within the TSP, which can provide significant tax-free growth. This option is crucial for managing tax liabilities in retirement, as withdrawals from traditional TSP accounts are taxed as ordinary income.
3. Life Insurance: Federal employees have access to the Federal Employees Group Life Insurance (FEGLI) program, which includes a standard policy that comes with free short-term and long-term disability coverage. Unfortunately, many employees cancel this policy without realizing the benefits it provides, including the ability to carry it into retirement without undergoing medical underwriting. After age 65, this life insurance can even become a free policy, which is a significant advantage.
4. Health Insurance: Federal employees enjoy one of the best health insurance plans available. They have the option to carry their health insurance into retirement, which is not commonly offered in the private sector. However, many employees do not understand the five-year look-back rule that can affect their eligibility for continued coverage post-retirement. This lack of knowledge can lead to the loss of health insurance benefits for both the employee and their spouse.

The disconnect between federal employees and their benefits often stems from insufficient education and communication from Human Resources (HR) departments. Employees may receive basic information about their benefits but lack the strategic guidance needed to maximize them. As Mario G. Taffo, a Federal Benefits Consultant, points out, there is a significant need for education regarding how these benefits work and how they can be optimized.

For instance, many federal employees do not realize that the government contributes significantly to their overall benefits package, which can add 20% to 30% to their total compensation when compared to private sector salaries. This understanding is crucial when considering job changes or negotiating salaries.

In summary, federal employees often lack awareness of the full range of benefits available to them under FERS, including life insurance, health insurance, and the TSP. This gap in knowledge can lead to missed opportunities for optimizing retirement planning. It is essential for federal employees to seek out educational resources and consult with experts to fully understand their benefits and make informed decisions that will impact their financial well-being in retirement.

Mario shared: “As a Chartered Federal Employee Benefit Consultant with over two decades of experience, I’m passionate about helping federal employees navigate the complexities of FERS and CSRS benefits.

At the Institute for Financial Awareness, we’re committed to providing comprehensive financial education and guidance. Our team works closely with HR departments to empower employees to make informed decisions about their financial future.

My areas of expertise include:

– Tailored FERS retirement planning

– Effective tax strategies

– Personalized financial consultations

– Engaging workshops and webinars

Let’s connect to discuss how we can help you achieve your financial and retirement goals.”

Mario positions himself as a guide for federal employees, helping them understand their options and make informed decisions about their retirement benefits. He conducts annual check-ins with clients to keep them updated on changes in tax brackets and ensure they are on track with their retirement planning.