Financial planning tips for furloughed feds

Thursday - 10/10/2013, 7:09pm EDT

For Your Benefit

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October 14, 2013 -- This week on For Your Benefit, join Tammy Flanagan, Karen Schaeffer and Bob Leins as they discuss financial planning tips for federal workers who have been furloughed.

The discussion parallels NITP's webinar on the subject. (Webinar will be available to view online through October 31, 2013. View whenever you'd like and as many times as you'd like.)

The webinar offers the following tips:

  • don't panic;
  • focus on cash flow;
  • explore lines of credit;
  • don't take distributions - loans are better;
  • cut back on contributions/ transfer IRA funds to TSP if appropriate;
  • consider liquidating some assets;
  • rethink short-term allocations;
  • know the G Fund survives debt ceiling drama;
  • stay focused.

"If you are going to have trouble paying your bills, do not wait and assume that your creditors understood what it meant to have the government furloughed and paychecks being delayed by a month or two," warns Schaeffer. "You've got to get on the phone with them andů really, really be proactive with that."