When most federal employees think about retirement, they imagine freedom — freedom to travel, relax, and finally spend time the way they choose. But for many, that dream gets bogged down by the stuff that’s still weighing them down — financially and emotionally.
Before you officially turn in your badge and start drawing that FERS pension, it might be time to take inventory. Ask yourself three key questions about everything you own:
- What is it really costing me — in money, time, and energy?
- What’s the opportunity cost — could that capital or effort be used better elsewhere?
- What becomes possible if I let it go — more income, less stress, greater freedom?
With those questions in mind, here are five things you may want to sell before your federal retirement — and one bonus many feds forget about.
1. Oversized Homes
You’ve spent decades building your career and potentially paying down your mortgage. For many federal employees, the family home is now one of their biggest assets — and also one of their biggest sources of ongoing costs.
Even if your house is paid off, it’s not free. Property taxes, insurance, utilities, repairs, lawn care — they all add up. And as the house gets older (and so do you), those costs and the energy it takes to maintain them can start to wear you down.
Selling a large home before retirement can dramatically lower your recurring expenses while freeing up significant capital that can be invested for income. Downsizing doesn’t mean “downgrading.” Many retirees find that a smaller home in a lower-cost area gives them a simpler, easier lifestyle — plus more flexibility to travel or help grandkids when it matters.
Of course, there’s emotional attachment to the place you raised your family. But remember: the memories move with you, not the mortgage.
2. Costly Hobbies and Toys
That RV, boat, jet ski, or vacation timeshare may have once felt like “fun investments,” but in retirement, they can quietly drain your savings. These big toys come with never-ending costs — insurance, registration, maintenance, fuel, storage, and the most underrated one: attention.
When you retire, you gain something priceless — your time. But if that time is constantly spent maintaining or worrying about expensive assets, is it really worth it?
Many federal retirees find that after a few years, those toys see less and less use. The joy fades, the upkeep doesn’t, and the resale value drops. Selling them before retirement can put extra cash into your TSP or brokerage account — or even fund experiences that bring more lasting happiness.
A good rule of thumb: if you wouldn’t buy it today with cash and enthusiasm, you probably don’t need to keep it in retirement.
3. Extra Vehicles
Having multiple cars feels convenient — until you realize how much they’re silently costing you each year. Insurance, registration, depreciation, and maintenance on extra vehicles can easily add up to thousands of dollars annually.
One smart strategy is to run a “90-day test.” Try living with one fewer car for three months and see if it truly impacts your life. Many retirees discover that between less commuting, better planning, and maybe a little rideshare flexibility, they can easily get by without that third car or extra truck.
Every vehicle you sell is one less bill, one less oil change, and one less thing sitting in the driveway reminding you of what you used to need — not what you need now.
4. Over-Support for Adult Children
This one is hard — maybe the hardest. Many federal retirees have adult children who still lean on them financially. Whether it’s helping with rent, student loans, or a down payment, it can feel rewarding in the moment.
If your generosity begins to chip away at your long-term financial security, it’s time to reevaluate.
You’ve spent decades earning your pension, saving in the TSP, and managing your finances responsibly. Your retirement years are meant to be enjoyed — not burdened by someone else’s budget.
Setting boundaries isn’t unkind; it’s necessary. And often, modeling financial independence is the best lesson you can give your kids.
5. Old Work Identity or Small Business Stakes
Some federal employees transition out of government service but keep a side business, consulting gig, or old passion project alive “just in case.”
That can be great — if it’s fulfilling and profitable. But if it’s become a source of stress, anxiety, or constant obligations, it might be time to sell or step away.
Retirement is supposed to open doors, not chain you to the same grind in a different form. If your small business or consulting work keeps you up at night or ties you down when you’d rather be visiting family or exploring national parks, consider what you’re really getting out of it.
Sometimes letting go isn’t about giving up — it’s about freeing up.
Bonus for Feds: Reevaluate FEGLI
Federal Employees’ Group Life Insurance (FEGLI) is one of the most overlooked items on the “sell or drop” list before retirement.
FEGLI premiums rise dramatically as you age, especially after 55. Many retirees assume they should just keep it “because it’s easy,” but that convenience often comes at a steep cost. By comparing private life insurance or reducing coverage to what you actually need, you can save hundreds — even thousands — per year in premiums.
Before you retire, get a clear projection of what your FEGLI premiums will look like at 60, 65, and beyond. You might be surprised how quickly they balloon — and how much that money could grow if invested instead.
The Big Picture
Retirement isn’t about cutting everything out of your life. It’s about clearing space for the things that truly matter.
When deciding what to sell or let go, ask:
- What is this really costing me? (Not just in dollars, but in time, energy, and worry.)
- What becomes possible if I let it go? (Freedom, flexibility, and less financial stress.)
Federal retirement should be the payoff for decades of service — not a continuation of financial obligations that don’t serve you anymore.
So before you retire, take a close look at your home, your toys, your vehicles, your financial relationships, and your commitments. Selling these five things (and maybe trimming your FEGLI) can mean the difference between a busy retirement and a liberating one.
