Categories for Insurances

Medicare Delayed Enrollment Penalty

May 15, 2017 2:43 pm Published by Leave your thoughts

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

health insurance for feds

FSA or HSA? Which will save you more money this open season?

November 29, 2016 5:36 am Published by Leave your thoughts

Here’s a brief overview and comparison of the HCFSA (Health Care Flexible Spending Account) and HSA (Health Savings Account).  Both of these plans can help you save much on taxes and both are available to you this open season (November 14- December 12, 2016). What are the benefits of a HCFSA or HSA? If you spend any money on health/medical related products and services such as Doctor’s co-pays, chiropractic, dental, vision, prescriptions, etc, you could pay for those products and services with pre-tax dollars, thus reducing your taxable income. Surprisingly, many people don’t fully utilize this benefit.  They buy their contact lenses or lens solution with post-tax dollar.  They pay their insurance deductible or co-pay with post-tax dollars.  These types of expenses can be paid for with pre-tax dollars.  Let’s illustrate what that means. Suppose you earn $100,000.  You will have to pay taxes on those $100,000.  However, if you... View More

It’s almost FEGLI Open Season, are you prepared?

August 25, 2016 5:09 am Published by Leave your thoughts

Next Thursday, September 1, 2016, the FEGLI gates will open.  This is the long awaited “open season.”  The last time this happened was 2004. Many people will assume this is a great opportunity to get more FEGLI coverage.   I view it as an opportunity to question whether FEGLI, or any other form of life insurance, is appropriate for you. To that end, I’ve created another resource to help Federal Employees.  It’s my new eBook “Better than FEGLI – Life Insurance strategies that save money and build wealth for Federal Employees” This eBook will: Help you calculate the appropriate amount of insurance you need (using actual worksheets!) Compare all your life insurance options Show you how your life insurance decision today can either be wealth-building or wealth-depriving. Click here to get your FREE copy. I’m looking forward to hearing any and all questions you have about your personal Life Insurance goals. Comment below... View More

annunity- time vs. money

Should you get the TSP annuity?

April 17, 2016 8:45 pm Published by 2 Comments

Here are some important points to consider about the TSP Annuity.  If you know someone considering the TSP annuity, or any other annuity, they’d probably appreciate this. What is an annuity? An annuity is an insurance product (not an investment vehicle) that converts the money you place into the annuity into a guaranteed stream of income payments that will last the rest of your life. Why would someone get annuity? Ideally, we’d like to have all our expenses covered by our federal pension and social security income, with no need to rely on our investments. But for many, that’s not the case.  Their federal pension and social security income may not be enough.  They have an income shortfall, and they need their TSP (or their other investments) to fill in the gap throughout their retirement. Do you need an annuity to fill in the income shortfall? If you think about it, the... View More