October 25, 2017 2:29 am
Yesterday, I went live on Facebook for the first time to talk about a timely and important topic for Federal Employees. There’s a good deal of money to be saved (& even earned!) when choosing the right FEHB coverage. This live feed can give you some pointers to choose wisely. Check it out below and while you’re at it, join my Facebook page to get more great tips and ask questions!
May 24, 2017 2:37 am
Definitions Early outs and buyouts are in the air, and federal employees are scrambling to make their retirement decisions. Below are the technical details that surround early outs and buyouts. Those who know the technical details can skip to the very end of the article where I deal with the pressing question of “Should you do it?” First, let’s get familiar with the terms: Early outs = Voluntary Early Retirement Authority (VERA) Buyouts = Voluntary Separation Incentive Pay (VSIP) Both VERA and VSIP are permissions granted by OPM to Federal agencies, to allow/encourage their employees to retire and receive an immediate annuity years before ordinary eligibility. VERA and VSIP are not always available to all agencies and employees. An agency must request, and be granted VERA and/or VSIP authority from OPM before offering early retirement to its employees. If OPM grants authority, the agency may use this authority at its... View More
May 15, 2017 2:43 pm
I hope you’re doing well. My wife and I took your FERS planning course (and then audited a second time) last year and we have a question that has come up. I hope you don’t mind helping on this point. As we are approaching a certain age we are being flooded with ads for Medicare Advantage type insurance and also I saw an article yesterday that mentioned the medicare delayed enrollment penalty. Our understanding is that we should sign up for Part A (free) anytime within 7 months before and after our 65th birthdays. However, since I plan to continue working at least til age 70 (maybe longer) and we will maintain FEHB enrollment, I thought we could delay signing up for Part B until I retire without incurring a penalty. Is this correct? The Washington Post article I saw yesterday suggested otherwise. We recognize the combination of FEHB and... View More
May 15, 2017 2:29 pm
Alrighty! The May TSP Planning Report is out! Once again, the environment is favoring stock investing. C fund and S funds are looking good. Even the I fund shows signs of normalcy. So, Take a look at some of the more aggressive portfolios. You may be surprised to see a downside exposure that is “stomach-able.” My lower yielding portfolios are G fund heavy because when stocks do well, you only need a small dose of stocks to lift your overall portfolio performance. Facts: The S&P 500 was up 1.25% in the month of April. The 3-month performance was 4.77% PMI levels were at 54.8%, which is well over the mid-range of 50. Unemployment was slightly improved, down to 4.4% which is 0.1% lower than it was last month. However, the initial GDP estimate for the 1st quarter 2017 was a paltry 0.7%, a notable drop. Assessment: Again, PMI’s numbers display... View More