As a fiduciary financial advisor in Decatur, Holland Capital helps federal scientists and public health professionals in their 40s see what happens to their FERS pension, TSP and health coverage if they leave federal service before retirement. Most conversations happen over video or a phone call, and we can sit down together on the Decatur Square when you book ahead.
A federal career, and a reason to consider leaving it.
Decatur is a city of highly educated workers. About 76% of adults 25 and older have a bachelor’s degree, and about 16% of workers have government jobs. Nearly four in ten work from home.
Perhaps a university, a nonprofit or a private company has offered you a role. Perhaps you are weighing a change on your own. Either way, leaving federal service before you can retire changes your pension, your TSP and your health coverage. Those effects are worth seeing before you decide.
Make sure whoever helps you is a fiduciary, and that you know how they are paid.
What Happens to Your FERS Pension
If you leave with at least five years of service, you can generally keep a right to a deferred pension later. When it can start and how large it is depend on your age and years of service. If you take a refund of your FERS contributions, you give up your current right to a deferred annuity based on that service.
Our guide to FERS retirement planning explains the basic rules.
Health Coverage After You Leave
Federal health coverage generally does not carry into a deferred retirement. Planning for health insurance is part of the decision, whether through a new employer or another plan.
Your TSP
Your TSP stays yours when you leave. You may be able to keep it in the TSP or move it to an eligible employer plan or IRA. Each choice has trade-offs in cost and investment options.
Comparing the Two Paths
We compare staying until retirement with leaving now. We use your service history, the new salary and benefits, and your savings. If you move accounts to us, our investment management invests them in line with that plan.
How We Work with Clients in Decatur
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring a recent pay stub from your agency, your latest TSP balance, any annuity estimate you have printed, and the private-sector offer if one is on the table.
You get a written comparison of staying and leaving, including the pension and health coverage effects.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with clients in Decatur primarily by video or phone. When an in-person meeting makes sense, we meet by appointment at the Regus center at One West Court Square on the Decatur Square.
For clients whose investments we manage, accounts are held directly at Charles Schwab in the client’s own name. Holland Capital manages the investments but does not take custody of client assets. If a client ever needs in-person assistance from Schwab, the closest branch is in Atlanta at 1075 Peachtree Street NE.
We work with clients throughout Georgia. You can see the other Georgia communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Do I Lose My FERS Pension If I Leave Federal Service Early?
Not necessarily. With at least five years of service, you can generally keep a deferred pension. The details depend on your age and service, so we check your records.
What Does a Fiduciary Financial Advisor Owe Me Before I Leave Federal Service?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For a federal employee, that means looking at your pension, TSP and health coverage together before you decide.
If your TSP moved into an account Holland Capital manages, our pay would go up. You hear that from us first.
Where Do Decatur Clients Meet with Us?
At the Regus center at One West Court Square, by appointment.
Follow-up meetings work well by video.
Photo: Marc Merlin / Wikimedia Commons / CC BY-SA 4.0, cropped.
