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

January 06, 2025 at 11:42 AM EST

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.

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.
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.
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.
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.

Video Link: https://www.youtube.com/embed/rSqRChNgApk

About Mario Taffo

Mario Taffo is a volunteer educator for The Institute for Financial Awareness, one of the fastest growing 501(c)(3) nonprofit organizations in the DC/Metro area.

Mario is a widely sought out speaker. His most requested workshop/webinar topics are 10 Steps to Financial Freedom, Retirement Planning for Federal Employees and Estate Planning.

Mario has been a member of the Greater Washington Hispanic Chamber of Commerce since 2009. He has provided financial educational support and resources to many embassies in Washington D.C., military bases, federal agencies, churches and other organizations. He also provides direct support to numerous HR departments at federal agencies in the DC/Metro area.

Mario has presented hundreds of financial wellness and financial literacy workshops in the DC metropolitan area, as well as educational webinars to participants around the world.

Mario has a MBA degree from the University of Central Florida and has been working in the financial services industry since 1996. Mario started his financial services career as a loan originator.

Mario has experience in investments and banking, in addition to retirement planning. Mario is fluent in Spanish. His bi-lingual abilities have allowed him to help guide many civilians, active duty and in-service and retired federal employees through the complex steps of their retirement planning process.

Thousands of individuals and small business owners have benefited from Mario’s knowledge and expertise, but one of his greatest pleasures in life is to help his friends and family plan for retirement. As a father, Mario has personal experience planning for college and has helped countless families reach their college planning goals.

In his free time Mario enjoys traveling, playing soccer, scuba diving and exercising. He is a loyal CrossFit enthusiast who can be found in his local gym every morning, competing with himself and pushing others to reach their full potential in the gym.

Learn more: http://www.ifaonline.org/

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

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