Federal benefits are powerful—but they’re not simple.
If you’re a government employee in Northern Virginia, your financial life likely includes a mix of the Federal Employees Retirement System (FERS), Thrift Savings Plan (TSP), Federal Employees Health Benefits (FEHB), Federal Employees’ Group Life Insurance (FEGLI), and maybe even the Civil Service Retirement System (CSRS). Each piece comes with its own rules, timelines, and trade-offs, and coordinating them as you approach retirement is no small task.
The financial and retirement decisions you make now can’t always be undone. That’s why working with a professional matters. You deserve someone who understands the inner workings of federal benefits, aligns with your values, and has the tools to build a strategy around your real life—not just your retirement accounts.
Federal Benefits Are Only as Good as the Strategy Behind Them
When your benefits are used intentionally, they can support a flexible, meaningful retirement. But they need structure and direction—not autopilot. Too many federal employees lose sleep over what they can’t control, like market swings, while overlooking what they can: TSP allocations, retirement timing, survivor benefits, and tax-smart withdrawals.
If you want to make confident decisions with your benefits, it starts by choosing the right guide. Here’s how to vet a financial advisor for federal employees—and how to find someone who truly understands what’s at stake for government workers in Virginia.
Confirm Federal-Benefit Expertise
A lot of financial advisors say they “work with federal employees.” But you don’t want someone who dabbles—you need someone fluent in the federal system and experienced in aligning complex benefits with real-life goals.
When you’re choosing a FERS retirement advisor, you’re not looking for general guidance. You’re looking for someone who can explain:
- FERS pension calculation breakpoints, like what happens at age 62 with 20+ years of service.
- How to coordinate or compare CSRS vs. FERS if you or your spouse falls under different systems.
- The pros and cons of TSP Lifecycle Funds and why the conventional wisdom of “just max out your TSP” isn’t always the right move for every situation.
- FEGLI cost increases and how they compare to private term policies as you age.
Ask whether the advisor has actually built retirement plans using real federal benefits data, such as OPM estimates, TSP projections, and survivor benefit options. Are they prepared to walk you through your numbers, or will you end up explaining how your system works to them?
Additionally, as someone who has worked with federal employees across virtually every agency and role, I can tell you: even with the same benefits package, no two situations are the same. Your advisor should understand those nuances and be able to tailor a plan that fits your version of federal service.
Verify Fiduciary & Fee Structure
Trust is non-negotiable. One of the clearest indicators you’re working with a client-first professional is whether they operate under a fiduciary standard.
Here’s the issue: anyone can say they’re a fiduciary. Unfortunately, titles alone don’t tell the full story. If an advisor’s license only covers insurance products, they’re legally limited in the advice they can give, and often incentivized to recommend high-commission annuities or unnecessary rollovers.
Before you get into planning conversations, take the time to understand how an advisor is licensed, how they’re compensated, and whether they’re required to act in your best interest at all times. A true fiduciary will walk you through how any decision, such as whether to keep your Thrift Savings Plan (TSP) or roll it to an Individual Retirement Account (IRA), fits into your overall strategy. That includes outlining both the potential advantages and drawbacks, so the recommendation serves your goals rather than a predetermined product.
Evaluate Tax Knowledge for Dual Jurisdictions
Living and working in the D.C. metro area brings an added layer of complexity—especially when it comes to taxes. You might work in D.C., own property in Virginia, and retire to Maryland or Florida. Tax strategies need to account for where you are now and where you’re headed.
If you’re looking for Virginia federal employee retirement planning, your advisor should be prepared to:
- Weigh the long-term impact of Traditional vs. Roth TSP contributions
- Coordinate your retirement withdrawals with state-specific tax planning
- Advise on residency changes and tax domiciling for those relocating
- Help you avoid unexpected state taxation on pension income or RMDs
The Roth TSP option adds valuable tax diversification. However, knowing when to contribute and how it fits into your overall plan takes experience. A capable advisor will model not just this year’s taxes, but your lifetime tax strategy—a concept that becomes more important as required minimum distributions (RMDs) kick in.
Gauge Integration of Federal & Private-Sector Assets
Not all government employees spend their full careers in federal service. Some take breaks in the private sector. Others retire from government roles and start encore careers, consulting or running small businesses. Each situation requires a different approach—your advisor should know how to blend multiple asset types.
Key things to ask:
- What should I do with my old 401(k) accounts? Should I roll it over into the TSP or possibly an IRA?
- How do RSUs or deferred comp from a former private employer factor into my strategy?
- Can you coordinate my spouse’s 403(b), 401(k), or pension alongside my FERS plan?
When it comes to CSRS benefit coordination, especially for dual-fed or mixed-retirement households, context matters. An advisor who understands how to structure withdrawals, minimize the tax burden, and preserve survivor benefits across multiple income streams will help you avoid planning blind spots.
Assess Communication & Tech Fit
Your time is limited—and federal careers don’t often leave space for long meetings or in-person paperwork. Your advisor should meet you where you are.
That means:
- Virtual review meetings that work with your calendar
- Leveraging modern financial planning tools
- Real-time dashboards so you can view your progress and make decisions with clarity
- Using secure, compliant methods for all communication, including text, email, or virtual meetings.
The bottom line: Those seeking a financial advisor for federal employees should look for an advisor who not only has expertise in federal benefits, but is adept at utilizing a broad array of technology to create a modern advice experience.
Advisor-Fit Checklist: 10 Questions to Ask
Use this checklist when interviewing prospective advisors. A “yes” to most (or all) of these suggests you’ve found someone worth continuing the conversation with:
- Are you a CFP® professional?
- In what capacity do you act as a Fiduciary? When do you act in a best interest capacity?
- Do you specialize in working with federal employees?
- Can you walk me through a FERS or CSRS pension estimate?
- Have you advised on TSP allocation and rollover decisions before?
- Do you provide FEGLI and FEHB planning comparisons?
- Do you model lifetime tax strategy, including Traditional vs. Roth TSP?
- Are you familiar with integrating TSPs, 401(k)s, and private sector RSUs?
- Do you limit your client load to ensure responsiveness?
- Can you show me a sample financial plan (with redacted client info)?
Ready to review your options? Connect with Good Life Financial Advisors of NOVA
Finding the right advisor isn’t about who makes the boldest claims. It’s about finding someone who listens, understands your benefits, and builds a strategy you can trust over time.
Here’s something I tell every federal employee I work with: Your benefits are already more powerful than most people realize. The key isn’t worrying about what the market will do tomorrow. It’s making sure you’re positioned to take advantage of what you can control today.
If you’re navigating Virginia federal employee retirement planning, or you’re trying to find a fiduciary financial advisor who understands how FERS and the TSP fit into the bigger picture, now’s a great time to start the conversation.
We are currently accepting a select number of new clients, so reach out today to schedule a complimentary call to walk through your questions, your timeline, and your goals. No sales pitch—just straightforward advice tailored to where you are and where you want to go.
We’ll have a short conversation to see if we’re a good fit for each other.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
