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Barfield Financial, LLC The straight scoop about FERS!

Average 401k Balances By Age According to Vanguard:25-34 $ 50,26135-44 $120,74245-54 $214,99155-64 $305,00665+ ...
09/08/2026

Average 401k Balances By Age According to Vanguard:

25-34 $ 50,261

35-44 $120,742

45-54 $214,991

55-64 $305,006

65+ $330,186

I continue to hold that Fersonians are more diligent with their TSP than many people in the private sector are with their 401ks. And we have a pension on top of it! They typically do not.

Keep doing what you're doing, Fersonians!

This data is from Vanguard's annual "How America Saves" report that is fascinating if you want to get hard numbers, not just regurgitated rumors from social media.

The above data comes from Page 52 of the report if you want to verify my numbers. And you should.

--you're all doing great!!!

What if I still have a TSP loan when I leave the government? This has come up again. If you retire/quit/get fired with ...
09/08/2026

What if I still have a TSP loan when I leave the government?

This has come up again. If you retire/quit/get fired with an unpaid TSP loan:

1. You can continue to make the payments if you want

2. You have no payroll deductions so you can make the payments by check, money order, or direct debit

3. You can pay the whole thing off if you want, whenever you want

4. You can still make TSP withdrawals if you have an outstanding loan (this is a relatively new rule change)

5. If you do not start making the payments by the deadline TSP gives you (typically 60 days), or you lapse in making your payments once you started, then TSP will declare the loan "foreclosed".

6. A foreclosed TSP loan means the balance will be taxable in the year it was foreclosed on and you will receive a 1099-R for the unpaid balance that will be considered income for that tax year

7. You may have early withdrawal penalties if you separated from the government too young and your loan is foreclosed

8. A TSP loan foreclosure does not in any way affect your credit score. Don't be scared by that term.

9. The current TSP loan rate is always the current annualized return of the G Fund, which changes monthly. Right now it is 4.875%

EXAMPLE OF PUSHING THE TAXABLE INCOME OUT TO A FUTURE YEAR:

Fersonian retires 9/30/26 with an outstanding loan balance of $10,000.

TSP sends him a packet in October telling him to start paying the new monthly amount by December.

Fersonian makes one payment in 2026. Then never makes another payment.

Sometime early in 2027, TSP declares the loan foreclosed due to lack of payment. In January of 2028, Fersonian receives a 1099-R for the $9k and something loan. Fersonian owes taxes on this by April 15th, 2028.

So, Fersonian retires 9/30/26, owes taxes on TSP loan by 4/15/28.

Just letting you know your options.

Interesting TSP info.The C Fund's current largest holding is Nvidia Corporation. Nvidia, in turn, owns $63 billion of st...
09/08/2026

Interesting TSP info.

The C Fund's current largest holding is Nvidia Corporation.

Nvidia, in turn, owns $63 billion of stock in the following companies:

Intel, SpaceX, CoreWeave, Nebius, Coherent, Nokia, Synopsys

So, while the C Fund is the SP 500 Index for all intents and purposes, only Intel and Coherent are current SP 500 stocks.

The others would be in the S Fund or I Fund.

So investing in C Fund also includes some S and I Fund companies through proxy.

Nothing big. Just interesting tidbit to pass along for you aspiring finance bros :)

A fellow Fersonian is looking for some help if any of you have found a solution to this:Situation: Retired Fersonian ha...
09/08/2026

A fellow Fersonian is looking for some help if any of you have found a solution to this:

Situation: Retired Fersonian has a login for their OPM account. Their late spouse was also a federal employee. The retiree also has an OPM survivor account because of this. So two accounts. OPM requires a separate login.gov account for each one.

This retiree is also on Social Security which requires a login.gov account. However, SSA has a requirement that you may only have one login.gov account to access SSA for security reasons. Meaning the retiree has to delete one of their accounts. If you have two login.gov accounts, SSA won't let you access the account. So they require you to delete one.

Which obviously they can't do, because they need both to access OPM.

So, OPM REQUIRES two accounts, SSA PROHIBITS two accounts.

Anyone encounter this and find a solution?

What a mess.

Marginal Tax Rate vs Effective Tax RateYou need to know this to plan for federal income taxes in retirement. You do NOT...
09/07/2026

Marginal Tax Rate vs Effective Tax Rate

You need to know this to plan for federal income taxes in retirement. You do NOT want to rely on OPM to withhold the correct amount.

Let's look at different incomes for Married Filing Jointly as an example.

Taxable Income: $100,000. That means you're in the 12% tax bracket and you're also paying about 12% in taxes. (Tax bill of about $11,503)

Taxable Income: $150,000. You're in the 22% tax bracket but you're paying about 15% in taxes. (Tax bill of $22,423)

Taxable Income: $200,000. You're in the 22% tax bracket but you're paying about 17% in taxes (Tax bill of $33,423)

Taxable Income: $250,000. You're in the 24% tax bracket buy you're paying about 18% in taxes (Tax bill of $45,195)

Let's say you expect to have $150k of taxable income next year. That means you'll owe about $22,423 in taxes. If you want your withholdings to cover that amount, you need a total of about $1,869 coming out monthly from your income sources.

If OPM is withholding $200, well then, you know you're going to have to write a big check come April.

Make sense?

Questions?

and understand tax rates

Subscriber sent this in. TSP Balance at retirement August of 2025.TSP Balance in August of 2026.No transfers in and no ...
09/07/2026

Subscriber sent this in.

TSP Balance at retirement August of 2025.

TSP Balance in August of 2026.

No transfers in and no withdrawals out. Just left it alone.



They gained more in a year of retirement than the highest government salary of any current worker.

A subscriber sent this in today as an example of why he's worried about TSP sending his life savings by mail to an IRA 🤯...
09/07/2026

A subscriber sent this in today as an example of why he's worried about TSP sending his life savings by mail to an IRA 🤯

The mailman left the neighborhood mailbox open because "he was on the phone" according to the subscriber, and not paying attention.

As a side note, I see these central mailboxes being built in the new neighborhoods around me. Must be the new trend. I don't like them at all. Why should I have to drive down the road to check mail?!

Hey! Sunday Scaries are moved to Monday this week! Put your Hush Puppies on for the Labor Day weekend show and enjoy yo...
09/06/2026

Hey! Sunday Scaries are moved to Monday this week!

Put your Hush Puppies on for the Labor Day weekend show and enjoy yourselves, Fersonians!

Now, HERE's an HSA hack:You and your spouse have a HDHP. You contribute the max to your HSA.Did you know that your adul...
09/06/2026

Now, HERE's an HSA hack:

You and your spouse have a HDHP. You contribute the max to your HSA.

Did you know that your adult children that are still on your HDHP can also EACH contribute $8,750 to their OWN HSAs? Even though they don't even have an insurance plan in their own name? Even though you already put the full $8,750 in your own plan?

And you can gift them the money to do this and they can still take the deduction?

Read all about it in this month's newsletter.

. And your HSA. And your kid's HSA. And your other kid's HSA. And shelter money from the IRS forever.

I spoke to some younger Fersonians the other day. Made me wonder again what I would do, were I hired today, given what ...
09/05/2026

I spoke to some younger Fersonians the other day. Made me wonder again what I would do, were I hired today, given what I know now after 10 years of studying this stuff full time.

I also realized just how close I am to a "Get off my lawn" boomer. 🤣

Here's my Top 5 plan if I am hired in 2026 as a young federal employee:

1. 100% C Fund

2. 100% Roth TSP for probably at least 10 years, but re-evaluate it as I move up tax brackets

3. Put what I could into TSP but have a plan to increase it every time I got a raise. Goal=Maxing out within 8 years

4. FEHB HDHP w/HSA

5. Maximum FEGLI until age ~35 then all private life insurance

BONUS: Take 1/26th of my check every pay period and put into a savings account to be used only during a government shutdown. After 1 year, I have an entire paycheck. After 2 years, 2 pay periods' worth.

What would you do if you were hired today?

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Wrightsville Beach, NC
27588

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