Why Federal Employees Get Bad Financial Advice (And What to Do About It)

If you’re a federal employee or retiree looking for peace of mind with your retirement income plan, this message is for you. We’re diving into a critical question: Why do so many Feds end up with bad financial advice? The truth might surprise you — and it’s not always coming from who you think.

1. The Coworker at the Water Cooler

Let’s start with the most common source: your well-meaning coworkers.

Now that there’s been a push to return to the office, we’re seeing more of those casual breakroom conversations again. You know the ones:

“My coworker told me not to buy back my military time.”
“I was told to cancel my basic group life insurance when I retire.”

And here’s the thing — it’s not that your coworkers mean any harm. You like them, they’re your friends, but just because someone says something with confidence doesn’t mean it’s right for your situation.

Advice on TSP allocations?
Suggestions about insurance?
Comments on retirement timing?

These are personal decisions that require professional understanding of your unique goals and benefits — not hearsay at the water cooler.

2. Free Workshops with a Catch

Next on the list: “No cost” workshops.

Sometimes agencies bring in speakers or financial educators who offer these free sessions. They sound great at first — educational, easy to attend — but here’s the kicker:

At the end of the workshop, they often schedule a one-on-one… and then push one specific product or solution.

One-size-fits-all doesn’t work when it comes to retirement planning. Life is about balance and moderation, and the same goes for financial tools. Be cautious if the only thing being offered sounds like it’s supposed to solve everything.

3. Advisors Who Don’t Know Federal Benefits

Another red flag: working with advisors who don’t understand your federal benefits package inside and out.

We see this all the time — advisors recommending federal employees:

Drop their FEHB because Medicare Part B is “better”
Opt out of survivor benefits
Completely empty their TSP

Sure, these moves might work in some cases — but only when they’re part of a larger, written plan that actually fits your personal and family needs. Without that, these suggestions can do more harm than good.

What You Actually Need

What you need is a comprehensive retirement income plan:

✅ It’s written down — not just in someone’s head
✅ It takes into account every part of your federal benefits
✅ It helps you see if your money will last as long as you do
✅ It supports both you and your spouse well into retirement

We’re here to help you get there.

At CD Financial, we believe federal employees deserve personalized, accurate, and balanced advice — not cookie-cutter solutions. If you’re ready to retire with confidence, let’s talk.

“You Don’t Need to Work Longer, You Just Need a Better Plan”

https://youtu.be/mPkFiAgGU7E

“You want a plan in place that’s in writing, integrates all your benefits, and lasts as long as you do.”

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All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication or future results. Opinions expressed are solely those of CD Financial LLC and staff. The information discussed has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. Topics should be discussed with your individual adviser prior to implementation. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital. Advisory services offered through CD Financial LLC, an Investment Advisor in the State of California. CD Financial LLC is not affiliated with or endorsed by the Social Security Administration or any other government agency. Insurance products and services are offered through CD Financial & Insurance Services, LLC., an affiliated company.

Retirement Planning Financial Planning Retirement Plans Federal Employee Financial Advice