Category: Financial Planning

By Jon Powell, CFP®

We all face financial pitfalls. Not having a financial plan, starting to save for retirement too late, not being aware of your expenses, and being underinsured are just a few. If you’re a federal employee, however, there are specific financial pitfalls you need to avoid to ensure your financial future stays on track.

Let’s discuss a few points that can help you navigate some of the intricacies involved with your specific financial situation and special benefits.

Thrift Savings Plans

One important benefit federal employees are entitled to is a thrift savings plan (TSP). A common financial pitfall among these retirement savings plans has to do with how they are invested. The federal employee must understand that TSPs are intended for long-term investing, not just to the point when retirement begins, but through retirement.

Because of this, the federal employee must invest in specific funds that align with that long-term investment approach. The funds that are allowed inside a TSP are not available to the general public. Some of these funds are titled C, S, I, L, F, and G funds.

With this long-term approach in mind, the federal employee should check how the TSP is invested, making sure that it is allocated more so with stock funds (C, S, and I). However, if you are in the later years of retirement, it’s important to ratchet down the allocation of stock to an increased allocation of the fixed-income funds (F and G).

In addition to how the funds are invested, it’s equally important to do your best to contribute the maximum amount allowed when you are younger and when you reach age 50 (eligible to contribute an additional “catch-up” contribution).

Failure to Include or Update Beneficiary Designations

Some of the special accounts or forms that federal employees may have to be aware of include the following:

• Unpaid compensation and unused annual leave of a deceased federal employee
• Federal employees group life insurance
• Thrift savings plan
• CSRS or FERS

The financial pitfall that we typically see here is not including or updating beneficiary designations on the above-mentioned accounts or forms. This is important, especially if the federal employee gets married, has children, gets divorced, or experiences any other major life change.

Emergency Funds

Having adequate emergency funds applies to all individuals, but this point is also important to make when considering pitfalls for federal employees. While federal employees have very strong job security, emergency funds still play a major part in their financial plan.

The reason for this is because of the potential for a government shutdown, which could eliminate certain sectors or lay off less-tenured employees.

Failure to Stay Informed

Benefits for federal employees can get complicated and they may change over your career. Because of this, many federal agencies offer multi-day seminars for mid-career employees and employees nearing retirement.

To stay abreast and more informed, it’s a great idea to attend and actively participate in such seminars when possible. The earlier you start understanding the nuances that federal employees are faced with, the better off you will be to make decisions today that have a big impact on your financial future.

Take the Next Step

At Ferguson Johnson Wealth Management, we work closely with our clients to design a financial plan that provides confidence and clarity while also helping to safeguard their future. We help our clients plan wisely so they can live fully by building the retirement they’ve been dreaming of.

If you’re nearing retirement, are already enjoying your golden years, or are a government employee and you don’t already have an advisor helping you on your financial journey, reach out to us at 301-670-0994 or by email. 

 

By Jon Powell, CFP®

What’s your top priority right now? I bet it feels impossible to pick just one, right? We’re all juggling countless priorities, but only a select few make it to the top of the list. Is it family? Or maybe health or a sense of purpose? Money might not top your list, but don’t underestimate its importance.

It’s been said that money isn’t everything, but everything needs money, and it’s true: money affects every part of your life and can give you the security and stability that positively impacts the things that matter most. Due to its far-reaching impact, managing money often leads to stress and worry.

That’s why a investment advisor plays one of the most prominent roles in a person’s life, forming a long-lasting relationship and providing objective counsel.  

But how do you find an advisor you can trust and with whom you’ll want to work for the long haul? We at Ferguson Johnson Wealth Management understand this can be an overwhelming and intimidating process.

Trusting someone with your hard-earned money is not a decision you take lightly. Knowing this, we are honored to have the opportunity to continue serving more and more families and individuals who conscientiously choose to let us in on their financial journey. 

We place the utmost value on our clients, and we greatly appreciate the opportunity to serve the important people in their lives as well. We gladly welcome the chance to connect and get to know new clients who may benefit from the services we provide. As an integral part of our continued growth, your referrals are the highest compliment.

The FJ Wealth Management Difference

We’ve been fortunate to work with a wide range of clients who refer their colleagues, friends, and family members to us. We believe so many people have referred others to us for a few different reasons:

1. A personalized real-world approach. No two individuals’ financial service needs will be the same, which is why we create a plan focused on your financial goals. We take the time to outline a tailored strategy based on your specific needs, goals, and circumstances. 
2. Strong relationships. We prioritize a hands-on client-centered approach, which has led us to build long-lasting relationships with so many of our clients. We’re proud to serve as a go-to resource and support system when someone faces a tough decision or goes through a life transition.
3. A long-term commitment. We recognize that financial planning and investing is not a static process since life changes happen and investment objectives can shift over time. That’s why we provide ongoing guidance and support. Whether it’s saving for your children’s college education, planning for retirement, or preserving assets for future generations, we seek to provide the financial service resources and continuous management necessary to keep you working toward your goals.
4. A dedicated team. With a diverse team of seasoned professionals who maintain a high-touch and personalized experience, we strive to help our clients simplify complex decisions about their money. We hope you feel more confident as you navigate life’s challenges and planning opportunities with a dedicated team on your side.

The People We Serve Best

We at Ferguson Johnson Wealth Management desire to partner with you and help carry your financial burden, aiming to make your wealth work for you, not the other way around.

Because we like to form trusted and close relationships with our clients, we strive to work with people whom we believe we can best serve, from working professionals, government workers, and executives to business owners and retirees.

While they come from a variety of backgrounds and professions, they want to delegate their financial matters to a trusted professional who offers stewardship and guidance so they’re free to focus on what’s important. 

Do You Know Someone Who Could Benefit From Our Services?

Our goal is to help our clients plan wisely, so they can live fully. This means we don’t just want to take financial matters off already full plates, but we also value providing personalized attention and care to each of our clients—as well as their loved ones. In fact, this is one of the reasons we work with a select number of clients!

We’re here to help answer questions about your portfolio or strategies, walk you through a new life milestone, and help build your dream retirement. Do you know someone who needs answers to their questions or unbiased advice? We’re never too busy to help!

If you’re a client with our firm and you’ve enjoyed working with us, we hope you’ll refer a friend, colleague, or family member who may benefit from our services. Consider sending this article to them, and if they’re interested in partnering with us, they can schedule their complimentary introductory meeting by calling 301-670-0994 or emailing 

By Jon Powell, CFP^®

For many people, finances are a major cause of stress. And sometimes that stress, coupled with financial insecurity, can negatively impact relationships and decisions.

As I saw this play out in those around me, I became determined to pave a different path for my life and relationships, pursuing financial literacy so money stress would not rule my life. 

I took some classes on the topic, and my passion for financial planning began to take shape. What started out as a personal pursuit has turned into a fulfilling career, one where I get to help others manage their finances and become educated about their options so they can focus on what’s most important to them. 

Building My Career

With a clear goal in mind, I obtained a bachelor’s degree in financial planning from Virginia Polytechnic Institute and State University and earned the CERTIFIED FINANCIAL PLANNER™ certification. After graduation, I spent a handful of years gaining experience and knowledge in investment, risk management, and financial planning at local wealth management firms. 

I joined the incredible team at Ferguson Johnson Wealth Management almost a decade ago, and now, as a financial planner and portfolio manager, I have the privilege of building long-lasting relationships with my clients, helping them carry their financial burdens and walking with them through life’s ups and downs.

With a focus on personalized services and objective advice, I strive to put my clients first and organize, develop, and deliver customized plans. 

I spend my days serving clients who are nearing or just entering retirement, helping them prepare for this pivotal milestone and ensuring that every piece of their plan is in place so they can retire the way they want to, without fear or uncertainty.

Why I Love What I Do

I became a financial advisor because I didn’t want to see people’s lives affected by money stress. And today, 10 years later, the most fulfilling part of what I do is seeing the relief on my clients’ faces when they build a financial foundation and walk out of my office with a road map to their goals.

The best part of my days is when I can sit down with clients, teach them what’s needed to secure their finances, and show them how they can experience financial confidence. 

If you want to walk into your future with excitement instead of worry, I’d love to help. Take the first step by reaching out to us at 301-670-0994 or by email.

About Jon

Jon Powell is a financial planner and portfolio manager at Ferguson Johnson Wealth Management, an independent, fee-only fiduciary firm that has been helping clients plan for and enjoy retirement for more than 40 years.

With more than 10 years of experience, Jon is passionate about providing unbiased advice that puts his clients first. He considers it a privilege to carry some of the financial burden for his clients and educate them so they can make empowered decisions for their futures.

Jon is also the primary author and curator of the Ferguson-Johnson Wealth Management blog. 

Jon graduated from Virginia Polytechnic Institute and State University with a bachelor’s degree in financial planning and holds the CERTIFIED FINANCIAL PLANNER™ certification.

When he’s not serving his clients, you can find Jon spending time with his wife, Erica, and their pets, a black lab named Nugget and an orange tabby cat named Kiwi.

He loves to play tennis and golf and won’t turn down a good board game. Jon is a diehard fan of D.C.- area sports teams; you might see him at a Washington Nationals game. To learn more about Jon, connect with him on LinkedIn.

By Derek Johnson, CRPC®

When I was a college student dabbling in the investment world, I had no idea my interest in the markets would turn into a lifelong career. This personal experience of researching investments and watching my money grow inspired me to do the same for others. So I switched my major to finance—and the rest is history! 

The Journey

After graduating with a bachelor’s degree in finance from the University of Maryland, I started working as an investment advisor representative at Ferguson Johnson Wealth Management, where, more than 20 years later, I serve as principal, director, and Chartered Retirement Planning Counselor™ (CRPC^®).

As the son of a successful small business owner, I understand and appreciate the value of money and the hard work that goes into building wealth. I take that understanding into my client relationships, striving to design financial plans that are customized and built for the long term.

My pre-retiree clients come to me with questions like “When can I retire?” or “How much do I need to save so I can retire without worrying about running out of money?” And my retiree clients want to make sure they have a solid distribution plan in place so they can enjoy their hard-earned golden years.

I spend my days helping my clients address these concerns—and the ones they haven’t even thought of yet. 

As head of our investment committee, I also develop portfolio strategies and implement the best funds and products to suit our clients’ needs. I make it a point to stay in contact with leading academics in the areas of portfolio and wealth management so we can continue to provide the right investment opportunities that get you closer to your goals. 

The Best Part

I still feel like the motivated, excited young adult who discovered what investments can do for your money. I love knowing that my skills and knowledge help others experience confidence so they can look forward to their future.

There’s nothing like celebrating with my clients when they reach a goal or seeing the relief on their faces when they realize they aren’t alone on their financial journey.

If that’s something you want to experience as well, reach out to our Ferguson Johnson Wealth Management team at 301-670-0994 or by email.

About Derek

Derek Johnson is an investment advisor representative and is the principal and director at Ferguson-Johnson Wealth Management, an independent, fee-only fiduciary firm that has been helping clients plan for and enjoy retirement for more than 40 years.

Derek also serves as head of the investment committee; in this capacity, he is in regular contact with leading academics in the areas of portfolio and wealth management and has presented research on the benefits of asset class allocation to the American Association of Individual Investors (AAII).

He holds the Chartered Retirement Planning Counselor™ (CRPC^®) professional designation.

Derek is known for providing honest advice and excellent service to his pre-retiree and retiree clients and feels privileged to be a trusted resource and support his clients can rely on.

Derek has more than 20 years of experience and earned a bachelor’s degree in finance from the University of Maryland. Outside of work, Derek enjoys spending time with his wife, Tiffany, and their two daughters, Sloane and Adalynn. He also loves football and traveling. To learn more about Derek, connect with him on LinkedIn.

By Derek Johnson, CRPC^® and Jon Powell, CFP^®

Retirement is arguably one of life’s most significant milestones. But, with so many questions about health, life circumstances, and even the economy, how do you plan for retirement in a way that leaves you feeling confident? In other words, how can you dream big and plan accordingly so all your bases are covered? 

These are legitimate concerns and the reason that Ferguson Johnson Wealth Management exists. We offer personalized financial planning and wealth management advice that is built on relationships. By building a relationship with you, we can help you navigate your life journey.

What We Do

Ferguson Johnson Wealth Management is a fee-only, independent financial advisory firm that partners with you to help set you up for the retirement you’ve been dreaming of. Our personalized and client-centered services allow you to plan wisely so you can live fully. 

We make this a reality by building a foundational understanding of your life—your dreams, concerns, and challenges. We leave no stone unturned as we look at your current situation and assess how we can help you get from point A to point B. All of our services—from retirement planning and investment management to charitable giving and tax strategies—are customized to your specific goals and values.

That means, your portfolio won’t look like anyone else’s because not only is your timeline and risk tolerance unique, but so is your vision of an ideal retirement. And, as a fiduciary firm, we can use the best suited funds and products available and tailor them to your needs. 

We also follow a long-term, steady approach. Life is unpredictable—and so are the markets. We’ll build your portfolio with a big-picture view that will not only protect it from major swings but also keep it academically researched and robust.

Our comprehensive, personalized touch will help you find the confidence to live your best life right now and look to the future with excitement.

Who We Serve

In order to provide the highest quality services and support, we specialize in serving pre-retirees, retirees, and government employees. We can help you prepare for retirement and design a plan that helps your money last as long as you need it to—no matter what life throws at you. 

Are you a government employee? Our 40 years of experience in the Washington, D.C., area has uniquely positioned us to understand federal retirement benefits and we are equipped to educate you on your options and optimize your benefits to secure your future. 

Regardless of their backgrounds or professions, our clients have a few things in common: They’ve worked hard their entire lives and are looking for guidance and assurance as they reach the end of their working years. They want to continue to steward their money wisely and know that they’ve done everything they can to plan for retirement. 

The Ferguson Johnson Difference

We know there are plenty of advisors out there. What sets us apart are the long-term relationships we build with our clients and the objective perspective we bring to the table.

Our clients know they can rely on us to listen, care, be available, and give them the knowledge they need to feel prepared. We pride ourselves on our proactive, authentic approach and the invaluable order we bring to peoples’ financial lives. 

We Are Here for You

You can’t put a price on confidence. If you have questions or concerns about your money, whether you’re on track to reach your goals or something is causing you financial worry, reach out to us at 301-670-0994 or by email. We can’t wait to hear from you. 

About Derek

Derek Johnson is an investment advisor representative and is the principal and director at Ferguson Johnson Wealth Management, an independent, fee-only fiduciary firm that has been helping clients plan for and enjoy retirement for more than 40 years.

Derek also serves as head of the investment committee; in this capacity, he is in regular contact with leading academics in the areas of portfolio and wealth management and has presented research on the benefits of asset class allocation to the American Association of Individual Investors (AAII). He holds the Chartered Retirement Planning Counselor™ (CRPC^®) professional designation.

Derek is known for providing honest advice and excellent service to his pre-retiree and retiree clients and feels privileged to be a trusted resource and support his clients can rely on. Derek has more than 20 years of experience and earned a bachelor’s degree in finance from the University of Maryland.

Outside of work, Derek enjoys spending time with his wife, Tiffany, and their two daughters, Sloane and Adalynn. He also loves football and traveling. To learn more about Derek, connect with him on LinkedIn.

About Jon

Jon Powell is a financial planner and portfolio manager at Ferguson Johnson Wealth Management, an independent, fee-only fiduciary firm that has been helping clients plan for and enjoy retirement for more than 40 years.

With more than 10 years of experience, Jon is passionate about providing unbiased advice that puts his clients first. He considers it a privilege to carry some of the financial burden for his clients and educate them so they can make empowered decisions for their futures.

Jon is also the primary author and curator of the Ferguson Johnson Wealth Management blog. 

Jon graduated from Virginia Polytechnic Institute and State University with a bachelor’s degree in financial planning and holds the CERTIFIED FINANCIAL PLANNER™ (CFP^®) professional designation. When he’s not serving his clients, you can find Jon spending time with his wife, Erica, and their pets– a black lab named Nugget and an orange tabby cat named Kiwi.

He loves to play tennis and golf and won’t turn down a good board game. Jon is a diehard fan of D.C.-area sports teams; you might see him at a Washington Nationals game. To learn more about Jon, connect with him on LinkedIn.

In our world, a great deal of time is spent having discussions over the proper ways to perform estate planning tasks. This can be as simple as establishing wills and beneficiary designations or can involve a network of specialized trusts to ensure your wishes are carried out after you pass away.

Many view debt-free homeownership as an important step on the journey to financial freedom and, eventually, a successful retirement. As housing costs increase across the country, particularly in and around major cities, being able to live in your home while only paying tax and insurance can go a long way toward keeping monthly expenses manageable.

Disclaimer: Ferguson-Johnson Wealth Management and our advisors do not sell or place life insurance, nor do we have any financial incentive to recommend or refer life insurance for our clients.

Happy New Year! I hope our clients and readers had a wonderful holiday and are excited to enter 2017. A New Year brings new opportunities to get a hold of your financial life.

Many people want to improve their financial well-being, but are unsure of effective ways to go about doing that. In this week’s post I’ve compiled some suggestions for how to make positive moves on your finances in the New Year. Treat these as your new financial resolutions.