Federal Drive

New feds – never too early for financial planning

Financial planning tips for new feds from Registered employee benefit consultant Ed Zurndorfer

Federal News Network Staff

July 22, 2011 10:31 am

1 min read

wfedstaff | June 4, 2015 9:08 am

When young federal employees start out in the beginning of their careers, they may think it’s a little early to be thinking about retirement and benefits. But not so, said registered employee benefit consultant Ed Zurndorfer.

Earlier this month, he put together a top-10 list of financial planning tips for new feds on the National Institute for Transition Planning website.

He previously stopped by the Federal Drive with Tom Temin and Amy Morris to share the some of those tips and today he finished out the full roster. (Click here to see the first five tips).

Consider individual disability income insurance, which could replace as much as 60 percent of an employee’s income tax-free, Zurndorfer said, after sick leave and annual leave are depleted. “It’s very important that you buy it when you’re young, because the older you are when you buy it, the more expensive will be the premium,” he said.
Take advantage of available income tax credits and deductions.
Remember that family members, such as parents and in-laws, are eligible for the Federal Long Term Care Insurance Program, even if the employee is not enrolled in the program.
Fill out, keep and update all beneficiary forms
When buying a new home, young feds should be wary of what Zurndorfer called over-purchasing.”Buy within your means,” he said. Zurndorfer’s rule of thumb: a mortgage payment, together with all other monthly payments, such as student loans and car payments, should not exceed 36 percent of an employee’s monthly gross income.