What the Ultra-Wealthy Do With Their Retirement Accounts That Federal Employees Don’t (But Could)

Federal employees have one of the most secure retirement frameworks in the country.

But:

Most don’t retire like the wealthy.

Not because they can’t.

Because they’re never shown how.

While you’ve been playing by the TSP rulebook, the ultra-wealthy have been playing a completely different game.

Today, we’re lifting the curtain on the 5 powerful retirement moves that high-net-worth individuals routinely use to stretch their wealth for decades (and generations). You don’t need millions to use these—just insight and timing.

🧩 1. The Roth Conversion Window

Most federal retirees step into a low-income “sweet spot” between the day they retire and when Required Minimum Distributions (RMDs) begin at age 73.

The wealthy don’t waste this window—and neither should you.

What they do:

Gradually convert Traditional IRA/TSP funds into Roth accounts while their tax rate is temporarily low.

Why it works:

• Moves money into a tax-free bucket forever

• Reduces future RMD tax burdens

• Lowers long-term Medicare premiums and taxable Social Security

If you're 59+, retired or about to be, and not touching your full pension or TSP yet—this could be your moment.

🔄 2. They Think in “Account Roles,” Not Just Balances

Most federal employees see all their accounts as one big pot.

Wealthy retirees break them into strategic roles:

• TSP/Traditional IRA → Use for bond interest or near-term withdrawals

• Roth Accounts → Grow untouched, pass to heirs, or use in high-income years

• Brokerage Accounts → Tap for capital gains, tax loss harvesting, or charitable giving

This “asset location” approach isn’t about how much you have—it’s about where it lives and how it grows.

💸 3. They Use Retirement Accounts to Fund Legacies—Tax-Free

When federal retirees pass away with large Traditional TSP balances, heirs often get hit with a tax bomb.

The wealthy avoid this in three ways:

• Converting to Roth accounts early

• Naming tax-savvy heirs or trusts as beneficiaries

• Rolling funds into more flexible IRAs to enable smarter distributions

If legacy is part of your retirement vision, don’t let the IRS be your biggest beneficiary.

🛡️ 4. They Don’t Rely on HR for the Final Plan

Wealthy retirees don’t rely on payroll offices.

HR can’t advise you on taxes. Or legacy. Or advanced drawdown strategies. And they won’t catch costly TSP rollover mistakes.

Instead, they use fiduciary advisors, estate attorneys, and tax professionals who understand retirement as a multi-decade strategy—not a date.

🧠 5. They See the TSP as a Tool—Not the Finish Line

Here’s the biggest mindset shift:

The ultra-wealthy don’t just accumulate assets—they allocate, protect, and deploy them over time, adjusting strategy every few years as laws, goals, and family needs change.

As a federal employee, you have the stability they often envy—guaranteed income, cost-of-living adjustments, FEHB access for life.

That gives you the freedom to use these wealth-building strategies with far less risk.

✅ Bottom Line:

You’ve already done the hard part—saving.

Now it’s time to retire like the wealthy do:

• Use Roth conversions smartly

• Assign your accounts specific roles

• Protect your heirs from taxes

• Treat your retirement plan like a dynamic system

• And never assume “what everyone else does” is the best move for you

Most of these tactics were never designed with federal employees in mind.

But they can absolutely work for you.

And the best part? You don’t need Wall Street connections—just the right information at the right time.

To your retirement success,
—Federal Wealth Retirement

P.S. If You Knew What the Fed Knows About Gold, You’d Be Alarmed