The Foreign Service Journal, April 2020

THE FOREIGN SERVICE JOURNAL | APRIL 2020 71 gains in the coming decades that outpace inflation. Save, Save, Save. While saving for retirement is vital, doing so can be dif- ficult depending on your cash flow situ- ation. Most experts endorse the tactic of “pay yourself first”: sign up for a large TSP payroll deduction so those funds never enter your take-home pay for discretion- ary spending. If you receive a hardship differential or an inheritance, consider investing a chunk of it in retirement sav- ings. Location, Location, Location. Where you retire can affect your net income. The Internal Revenue Service taxes annuity payments, TSP withdraw- als and Social Security, but some states do not. Thus, retiring to certain states can raise your after-tax income. For a state- by-state analysis, see the AFSA Tax Guide published each year in the January/ February edition of The Foreign Service Journal and posted at www.afsa.org/fsj. Take Charge of your Retirement With luck, you will spend longer in retirement than you spent in your work- ing career. To prepare for that crucial transition, do your homework by review- ing online guidance, such as the Office of Retirement’s website at https://RNet. state.gov. Pay special attention to steps t o take between one and five years before retirement to make your final retirement processing go smoothly. These include “buying back” any prior federal civil- ian or military service to increase your FSPS pension, and sending the Office of Retirement your divorce documentation (if applicable) to determine how it affects the division of your pension. During your career, find time to take the Foreign Service Institute’s excellent retirement planning courses: the two-day Early/Mid-Career Retirement Planning Seminar (RV105) when you are more than 10 years from retirement eligibility, and the four-day Retirement Planning Semi- nar (RV101) within 10 years of retirement. At retirement, take the two-month Job Search/Transition Program (RV102). By your mid-50s, seriously evalu- Discover a modern oasis for an active retirement in a thoughtfully-designed one-bedroom apartment home. It’s the perfect amount of space for a do more lifestyle! You will love our state-of-the-art facilities including our aquatic center with a lap pool and a spa. Supporting an atmosphere of continual learning and wellness, you can experience everything from guest lectures and art classes, to learning a new instrument or training for your first 5K. GLENMERE at The Village at Rockville The Village at Rockville is sponsored by National Lutheran Communities & Services, a faith-based, not-for-profit ministry of the Evangelical Lutheran Church in America, serving people of all beliefs. ONE. This is the Learn more at www.thevillageatrockville.org or call 301-780-4349 RETIREMENT SUPPLEMENT