Posted on Friday, 10th October 2025 by Dennis Damp

Last year, I posted an article titled “Too Much Too Soon & Cable TV Subscription Costs,” in which I discussed automation and the high cost of cable TV subscription services.

Ramifications of the Federal Shutdown – The Reality

The house we visited a year ago finally sold last month, at 25% below its original asking price. This home was a custom-built ranch home in our neighborhood, and everything was monitored and remotely controlled. Mary and I couldn’t imagine living with all of the automation, even though it was gorgeous inside and mostly one-floor living.

Even though this home took a year to sell, mainly because it was overpriced to begin with, other new homes in our area continue their upward march.

One of the new ranch home communities was selling 1,400-square-foot ranch homes for the low $300,000s last year and is now offering them for just over $400,000. This is in just a year!

Inflation and Jobs Growth

In August 2025, U.S. job growth was below expectations, with only 22,000 nonfarm jobs added, and the unemployment rate rose to 4.3%. Inflation saw a slight increase, with the annual Consumer Price Index (CPI) reaching 2.9%, up from 2.7% in July. This combination of a slowing job market and rising inflation creates a challenging economic environment for the Fed Chair and other policymakers.

USA Today reported on September 9^th, “The Federal Reserve is widely expected to announce a rate cut after its two-day September meeting.” The central bank announced a .25% rate cut on September 17th, and several disappointing job market reports spurred the Fed into action. Some are projecting a total of three rate cuts this year; time will tell.

The health care sector added jobs, but losses occurred in other areas, including the federal government, mining, and manufacturing, which shed 12,000 jobs.

The Bureau of Labor Statistics (BLS) reported 911,000 fewer jobs than previously reported between April 2024 and March 2025, according to preliminary benchmark revisions on September 9, 2025.

This revision indicates that the average monthly job gain was significantly lower, decreasing from 147,000 to 71,000 over those 12 months.

Don’t Cut and Run Without an Annuity – Deferred and Early Retirements

Cable Subscription Costs

Our monthly cable bill climbed to $347 a month recently. I’ve tried numerous times to renegotiate a lower price with Xfinity Comcast and experimented with several streaming plans. Our cable bill is considerably higher than most of our monthly bills.

I finally made headway this month and was able to lower our cable bill by almost 30% to $251 monthly. This included a 5-year price lock on the modem and Wi Fy. When I called them about the escalating costs, they offered several options if I transferred my two cellular lines to them.

The cable companies are seeing many subscribers abandon their services for lower-cost streaming options.

My Verizon cellular monthly cost was $117 for two lines, and Comcast offered a promotional rate of $20 per month for the two phones for a year, after which the cost would increase to $60. They also included two Apple Watches as a bonus; however, there would be a $10 cellular fee per watch, adding $20 a month to my cell phone bill, still less than half my Verizon costs.

We did drop some channels that we never watched anyway, and we haven’t noticed any significant changes in our service, a good deal overall.  I experimented with YouTube TV and other streamers and would have moved to one of them had Xfinity not reduced our costs.

The advantage of staying with a cable company is convenience and the availability of service centers in most areas. Plus, their cable remotes are much easier to use, including voice commands. Streaming services are slow to respond to your commands, and you have to use multiple remotes to get to where you want to go. My wife wasn’t interested in having to navigate various remotes for each TV.

Cable Channel Confusion

We were only using a handful of the 200+ channels we had, and seldom watch NBC, CBS, and ABC, except for local news. Most of the time, we use Amazon Prime, Netflix, HULU, and other streaming services, and watch cable news channels, Discovery, HGTV, History, Lifetime, and a few others.

Alternate Route

There are ways to cut the cord using either paid/or free TV streaming services. To get around the prospect of losing your email address, retain your current Internet provider’s internet services. Internet service averages about $80 per month, plus a Wi-Fi modem costs another $15. For information on alternate routes, review the article I wrote last year on the subject.

Summary

The rate cuts will impact retiree savings the most, through lower returns on fixed income investments. Bond, money market yields, and savings account interest will follow suit. There are options to lock up your fixed income for a longer term now before rates drop further.

Please talk with your financial advisor, they often offer higher earning with fixed deferred annuities, bonds, and CD ladders that can lock in rates for anywhere from a few years to 10 or more.

Lowering rates often causes stock share prices to rise, and those fixed-income losses could be recovered in your IRAs and TSP accounts. However, the market typically anticipates movements like this six months before they occur, and this expectation may already be reflected in the stock market. There are many variables to consider, and the stock market is highly volatile, up one day and down another.

The cost of everything is rising faster than most realize, and retirees are often the first to feel the pinch. Explore ways to economize and protect the savings you spent a lifetime accumulating.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Free Retirement Planning Report
• Budget Worksheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2026 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Fed Rate Cut, Inflation, Jobs Growth
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Thursday, 25th September 2025 by Dennis Damp

My article, titled “TSP Traditional to ROTH IRA Conversions Coming Soon,” has one area that needs further clarification and one typo under the “Benefits and Timing” heading. Additionally, I had intended to address the income tax impact in a separate article; it is included here for convenience.

I illustrated how much a couple with total taxable earnings of $112,000 this year could convert to a Roth IRA without increasing their Medicare premiums. Here is the corrected paragraph:

If your current joint income in 2025 from all sources is approximately $112,000, converting up to $100,000 to a Roth will keep you in the first Medicare IRMAA bracket of $212,000. Your Medicare premium would be $185. Single filers are limited to an income of $106,000 before going to the next premium tier.

IRMAAs and AGI

The Income-Required Monthly Adjustment Amount (IRMAA) is a premium surcharge applied to higher-income Medicare beneficiaries. It applies to participants in original Medicare and Medicare Advantage plans.

Medicare premiums are determined by adding the following tax-exempt income back to your Adjusted Gross Income (AGI), creating the Modified Adjusted Gross Income (MAGI) that is used for determining your IRMAA:

• Untaxed foreign income that was excluded from your gross income.
• Tax-exempt interest from sources such as municipal bonds.
• The portion of your Social Security income that isn’t taxed.

The Two-Year Lookback

The last paragraph in the Benefits and Timing section had a typo stating that Medicare premiums for 2026 are calculated based on your 2025 income tax return, so you wouldn’t pay a higher Medicare premium until 2027 if you entered a higher tier.

Medicare premiums are determined from your tax return two years back, so it should have read as follows:

Medicare premiums for 2026 are calculated based on your 2024 income tax return. You wouldn’t pay a higher Medicare premium until 2027 if you entered a higher tier this year.

Another clarification includes the limits for both single and joint filers, stating that care must be taken because any amount exceeding the $106,000 limit for those filing individual tax returns and $212,000 for those filing joint returns would result in increased Medicare premiums. Therefore, it’s best to underestimate to avoid increased premiums.

The Pensioned Americans Retirement Company (PARCO) specializes in issues like this to help federal employees and annuitants successfully manage their retirement benefits. They provide the support you may need to maximize the benefits that you have earned over the course of your career.

Income Tax Bracket Consideration

If your Roth contribution causes your income to exceed the current tax bracket you are in, your federal tax rate would increase. The federal income tax rates for 2025 remain unchanged from those for 2024: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

In the illustration from the previous article, a joint filing with $112,000 of taxable income in 2025 could convert $100,000 to a Roth IRA without increasing their Medicare Premium in 2027.

A married couple filing jointly would be in the 22% tax rate with $112,000 of taxable income. However, their tax rate would increase to 24% if they converted the full $100,000.

If they reduced their Roth conversion to $94,000 or less, their federal tax rate would stay at 22%. It’s best to contribute less than the maximum in case your taxable income rises unexpectedly due to increased mutual fund annual distributions, RMD increases year-over-year, savings bond interest, or interest and dividend income.

Regardless of the impact on your Medicare premiums or whether or not you end up in a higher tax bracket, whatever you transfer to a ROTH is fully taxable in the year you convert a part of your Traditional TSP to a ROTH.

Let PARCO help you determine how much to convert to a ROTH and when.

Input Appreciated

I want to thank Marty and Gerry for bringing this to my attention. I updated our blog article to incorporate these changes. Please keep your feedback coming.

Update – Reduced Schedule

You may have missed this in a previous article, and I wanted to mention it again here. I intend to reduce the frequency of my blog and email newsletter posts to twice a month, and it’s time to settle into the life of a retiree and enjoy what is yet to come. If something pressing arises, such as this issue, I may still publish brief announcements between bi-monthly posts to keep everyone informed of significant events or changes that are forthcoming.

Please continue to send your questions and comments. I derive my articles from the input you submit. It’s been a pleasure providing this service for the past 21 years, and I hope to continue on a reduced schedule in the future.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Free Retirement Planning Report
• Budget Worksheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2026 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Daily Brief, Federal Tax Rates, Impact of ROTH Conversions, IRMAA, MAGI, TSP ROTH Conversion
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 19th September 2025 by Dennis Damp

Starting in January 2026, you can perform TSP Roth in-plan conversions to move money from your traditional TSP to a Roth TSP, paying taxes on the converted amount that year.

Alternatively, you can transfer your traditional TSP funds to a Roth IRA, which is a taxable event. For Roth in-plan conversions, you must use personal funds, not TSP assets, to pay the taxes on the converted amount.

IRMAA Impact

For those on Medicare, when making a conversion, check the Income Related Monthly Adjustment Amount (IRMAA) limits to assess the impact on your Medicare Part B and D premiums. This, along with any RMDs, can dramatically increase your premiums.

Don’t Cut and Run Without an Annuity – Deferred and Early Retirements

Benefit and Timing

This allows you to have both traditional and Roth funds within your TSP account, with the converted funds growing tax-free and not subject to Required Minimum Distributions (RMDs) in retirement.

To determine how much to convert each year without creating higher Part B and D premiums for those on Medicare, check the IRMAA income limits to see where your anticipated income falls.

If your current joint income in 2025 from all sources is approximately $112,000, converting up to $100,000 to a Roth will keep you in the first Medicare IRMAA bracket of $212,000. Your Medicare premium would be $185. Single filers are limited to an income of $106,000 before going to the next premium tier.

The IRMAA is a premium surcharge applied to higher-income Medicare beneficiaries. It applies to participants in original Medicare and Medicare Advantage plans.

Medicare premiums are determined by adding the following tax-exempt income back to your Adjusted Gross Income (AGI), creating the Modified Adjusted Gross Income (MAGI) that is used for determining your IRMAA:

• Untaxed foreign income that was excluded from your gross income.
• Tax-exempt interest from sources such as municipal bonds.
• The portion of your Social Security income that isn’t taxed.

If you converted more than the calculated amount, you and your spouse would move to the second tier, and have to pay $259 monthly for Medicare B premiums; your Part D premiums would also increase. Many who elect to enter Medicare Advantage health plans may be required to pay Part D premiums if their income exceeds the lower limit.

Care must be taken because anything over the $106,000 limit for those filing individual tax returns and $212,000 for those filing joint returns would increase their Medicare premiums for at least a year down the road. Therefore, it’s best to underestimate to avoid increased premiums.

Medicare premiums for 2026 are calculated based on your 2024 income tax return, so you wouldn’t pay a higher Medicare premium until 2027 if you entered a higher tier this year.

Taxable Event

Regardless of what IRMAA level you will be in, both Roth transfer methods result in a taxable event since you are moving deferred-tax money from your traditional TSP into an after-tax (Roth) account. This will not only impact your Medicare premiums but may also cause you to be taxed at a higher income tax bracket for the year. My next article features how to avoid moving to a higher tax bracket.

You can’t use TSP assets to pay the taxes on the conversion, and you can’t roll over your RMD for the year you make this change. The TSP will send your RMD regardless, and you must use personal funds outside of your TSP to pay the taxes.

The TSP recommends, “If you’re considering doing a Roth in-plan conversion, we strongly recommend that you consult a tax advisor to start planning how it would affect your taxable income and estimate how much you may need to pay in taxes.”

Update – Reduced Schedule

I intend to reduce the frequency of my blog and email newsletter posts to twice a month, and it’s time to settle into the life of a retiree and enjoy what is yet to come. If something pressing comes up, I may still issue short announcements between bi-monthly posts to keep everyone informed of significant events or changes that are coming our way.

Please continue to send your questions and comments. I derive my articles from the input you submit. It’s been a pleasure providing this service for the past 40 years, and I hope to continue on a reduced schedule in the future.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Free Retirement Planning Report
• Budget Worksheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2026 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: IRMAA, Medicare Part B Premiums, Medicare Part D Premiums, Medicare Premiums, Payment Methods, Taxable Event, TSP Roth Conversions
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 5th September 2025 by Dennis Damp

Gail recently asked, “If I use my Thrift Savings Plan (TSP) Required Minimum Distribution (RMD) to purchase an annuity, can I avoid paying taxes on that RMD?” Using your Thrift Savings Plan (TSP) Required Minimum Distribution (RMD) to purchase an annuity doesn’t eliminate the taxes due on the withdrawn funds.

RMDs are Taxable as Ordinary Income

Required Minimum Distributions (RMDs) are mandated withdrawals from tax-deferred retirement accounts like a traditional TSP once you reach a certain age (currently 73). These distributions are considered taxable income in the year you receive them, regardless of how you subsequently use the funds.

Annuity Purchases

The current TSP annuity rate is an attractive 4.85%. All or part of your TSP account can be used to purchase a life annuity through an outside vendor. Purchasing an annuity means that you pay now to receive monthly payments for the rest of your life (or, if you choose a joint life annuity, for the lives of you and your joint annuitant).

Essentially, you give up your money and control of it in exchange for guaranteed lifetime monthly payments. If you choose the annuity option, the TSP will purchase an annuity for you from its list of annuity providers. Once purchased, your annuity is not part of your TSP account, and you cannot change or cancel the purchase.

Annuity payments are taxable. If you purchase a TSP annuity, the annuity payments you receive later will be subject to federal income tax as ordinary income. The taxes on the original contributions and earnings are deferred until the annuity payments are accepted.

For those who transfer their TSP to an IRA at another financial institution, annuities can be purchased for as little as several years to lifetime; additional annuity options are available.

• TSP Annuity Fact Sheet

Key takeaway

You are subject to taxes on the RMD when you withdraw it from your traditional TSP, regardless of whether you use those funds to purchase an annuity. The annuity payments themselves will also be taxable when you receive them.

Annuities are long-term retirement investments, and they lock up your funds for an extended period. These funds aren’t available for emergencies or other short-term needs. Many also have surrender charges as high as 10% in the early years.

Roth TSP

If you have a Roth TSP balance, your contributions were made with after-tax dollars, and the TSP annuity payments composed of Roth contributions will not be taxed. The taxability of the Roth earnings depends on whether the distribution meets the IRS rules for qualified Roth distributions.

Rollovers

While you can roll over all or part of traditional TSP installment payments (if the duration is less than 10 years) to a traditional IRA or other eligible employer plan to continue tax deferral, you cannot roll over any part of your RMD.

Transferring Your TSP Account

After retirement, federal annuitants can transfer all or a part of their TSP account to a professional financial management firm or to a self-managed retirement account with companies like Fidelity and Vanguard, where many more investment options are available.

They can open a retirement account for you and assist with transferring all or part of your TSP to a brokerage account, where you can purchase any mutual fund, stock, ETF, or bond if desired.

If you elect to do this, be sure to have your TSP funds transferred directly to the new retirement account; otherwise, the transfer would be considered taxable by the IRS.

Federal employees can also make an age-based in-service withdrawal any time after they reach age 59½ as long as they are an active civilian federal employee or a member of the uniformed services.

Some use the age-based withdrawal option to transfer a part of their TSP to a private retirement account that they can personally manage or to a financial planner to compare their performance and services.

If you are an experienced investor, this may be the best approach.  Others, with limited investment experience or who lack the time needed to manage their accounts personally, may consider moving funds to a fee-based financial advisor who manages their accounts on their behalf.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Free Retirement Planning Report
• Budget Worksheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2026 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Annuity Pruchases, Annuity Purchases, ROTH Annuities, Transferring Your TSP Account, TSP, TSP Fixed Annuity, TSP RMDs, TSP Rollovers
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 29th August 2025 by Dennis Damp

Over the past three years our health care premiums have increased an average of 29.9%! If this trend continues, many will be seeking lower cost coverage among the FEHB/PSHB providers.

The 2025 Open Season runs from November 10, 2025, through December 8, 2025. Federal and Postal employees are able to evaluate their health, dental or vision insurance coverage for the upcoming year.

OPM sent a FEHB Program Carrier Letter to all FEHB and PSHB providers on January 15, 2025. This letter outlines the policy goals and initiatives for the 2026 Programs.  An addendum letter was issued on January 31, 2025, to incorporate two Presidential Executive orders designed to address gender ideology extremism and protect children from chemical and surgical mutilation.

This year, OPM is issuing two separate Technical Guidance documents, one for FEHB Carriers and one for PSHB Carriers.

OPM GOALS

As excerpted from their guidance letter, “OPM’s goal for both the FEHB and PSHB Programs is to provide quality, affordable, and equitable health benefits for Federal and Postal Service employees, Federal and Postal Service annuitants, their family members, and other eligible persons and groups.”

The addendum further states, “Pursuant to the first EO, all federal agencies are tasked with ensuring all federal policies and documents that require an individual’s sex list two options, male and female, and shall not make available third options or request gender identity.”

OPM no longer requires Plan Year 2026 proposals to clarify or update the obesity management benefit to include the elements listed in the bullets starting on the bottom of page 10 and continuing through the bottom of page 12 of Carrier Letter 2025-01.

PREMIUM IMPACT

The average increase for our FEHB plans in 2025 was 13.5%, and the PSHB increase was 11.5%, the largest increase in recent memory! This significant rise was due to factors such as rising healthcare provider costs, additional requirements by the previous administration to provide gender affirming care, utilization of prescription drugs, and higher spending on behavioral health services.

The carriers will face challenges again this year due to inflation, rising healthcare costs, and increased drug prices. However, eliminating specific expensive elective procedures and limiting obesity coverage could help moderate any pending increases.

EVALUATE YOUR CURRENT FEHB PLAN

Open season is coming up fast, and it’s a good time to review your current plan’s coverage and ask yourself if it met your needs and expectations this year. Ask these questions:

• Did I have coverage issues?
• What additional coverage will I need next year?
• Was I able to get the medications/prescriptions needed?
• Did I have to pay high prescription copayments?
• Were my deductibles, copayments, and coinsurance excessive this year?
• Are the labs, doctors’ offices, hospitals, and outpatient facilities available in my immediate area and covered by my current FEHB/PSHB plan?
• Did I have to travel out of my area to see a provider or have procedures performed?
• Was customer service helpful and easily accessible?
• Did I encounter unanticipated expenses that I thought were covered by my current plan?
• Are you signing up for Medicare this or next year? If so, you may want to consider moving to a lower-cost FEHB plan.
• Explore Medicare signup options.

Answering these and other questions will help you prepare for the upcoming open season. If you had problems this year, look for plans that will better suit your needs in 2026.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Free Retirement Planning Report
• Budget Worksheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2026 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: 2025 Open Season, 2026 FEHB/PSHB Premiums, Daily Brief, FEHB, FEHB Guidance, FEHB Open Season, PSHB, PSHB Guidance, PSHB Open Season, Selecting 2026 Health Care Plans
Posted in BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION, WELLNESS / HEALTH

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Posted on Thursday, 21st August 2025 by Dennis Damp

Thanks to a kind and skilled pharmacy technician, my prescription costs for Asmanex decreased from $135 a month to $39! This is a welcome reprieve from one of the medications I take. Asmanex is the only asthma inhaler I can use without significant side effects. GEHA didn’t cover it in the past, and I purchased it using my GoodRx card.

This pharmacy technician asked me why I wasn’t purchasing it through my health care provider and offered to look it up. After a few minutes, I received the good news. How we do things becomes the norm, and we stay the course. It pays to ask questions, and the reward is often lower costs or better services.

Questioning Everything

Today, we have the world at our fingertips, unlike in decades past, when our only sources for more information were encyclopedias, the library’s index card system, magazines, or from the horse’s mouth. The newer generations don’t even know what an encyclopedia is, and when it comes to the horse’s mouth, that is for another conversation.

I can tell you from first-hand experience that the 18-volume abbreviated encyclopedia set I sold door to door in my youth weighed over a hundred pounds. I carried it from one presentation to another, and at the end of the day, my arms felt like they would fall off. I also sold West Bend stainless steel cookware sets in the 1960s, which weighed about the same.

The encyclopedia sets were out of date shortly after they were purchased. Things changed quickly, even back in the 1960s. Annual updates kept the money rolling in for these companies.

Download Our Free Federal Employees’ Leave Tracking Spreadsheet

Ask and You Shall Receive

Siri, Alexa, Google AI, YouTube, and many other services make life much easier. In a pinch, I call on Siri and Alexa to answer many questions on the spot, such as how old so-and-so is! When playing Scrabble, I need to know if a word that our mischievous grandkids want to use is legitimate.

YouTube makes assembling and disassembling many things so much easier, and their cooking videos have saved the day and expanded our diet many times over. Who did we ask growing up about these things? Mostly our parents, siblings, work associates, and friends. The last resort was the local library, where I spent a lot of time in my youth.

Discounts for the Asking

Many companies offer discounts for various groups if you ask. Boscov’s, a department store franchise in our area, provides a 15% discount to veterans who sign up for their loyalty program. Lowe’s and Home Depot offer a 10% military discount, as do many other retailers.

Even Kentucky Fried Chicken offers a 10% senior discount in our area. McDonald’s senior discounts for a small coffee are around $0.90; this can vary by location, and some places may offer even cheaper or free coffee for seniors. You have to ask for a senior’s coffee!

The only way to find out is to ask, and many are hesitant to do so. I always ask contractors and vendors if they offer senior or veteran discounts, and you will be pleasantly surprised at how many do offer discounts.

Ask and You May Not Receive!

Most people want a short and sweet answer, but I’ve always had a penchant for creating Gantt charts and providing details to make sense of it all. Many people just read a few paragraphs, if that, and then file away what they received, hopefully not in the trash bin.

In one case, I was directed to eliminate a shift at my duty station. I provided a lengthy, detailed proposal to management outlining the actions needed to accomplish the assigned task. In the last paragraph, I requested their approval to proceed—the change required coordination with the regional office’s LMR staff.

Months later, I was accused of disobeying an order! I asked the manager for the proposal I sent, pointing out the last paragraph where I requested their approval before proceeding. I had asked if they had read the proposal several times over the past few months, and each time I was advised it was on their desk; they never got back to me.

The moral of this story is to read what is sent to you, and for senders to note up front that input is needed before proceeding. A win-win for everyone.

Join other federal workers on the FedWork Network.
Sign up for this Free Service to get started.

The Possibilities

In school, I didn’t hesitate to ask questions in class, much to my classmates’ displeasure. They wanted to move on to another subject, where I was focused on comprehending what was presented.

John Hawkins stated, “Sometimes we get so caught up in appearing smart that we become afraid to ask the question that will make us smart.”

By posing questions, we create an environment where it’s okay to think about what is happening, explore better ways to do things, and possibly get a better deal, and challenge the way we’ve always done it.

I often negotiate for better terms or lower costs, both in my business and personal life. Questions bring clarity and often with benefits such as lower costs or enhanced services.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Free Retirement Planning Report
• Budget Worksheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2026 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Additdional Services, Asking Questions, Daily Brief, Discounts
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Thursday, 14th August 2025 by Dennis Damp

I retired in 2005 at age 55, almost 21 years ago! I wouldn’t have retired if I didn’t have 35+ years of service at the time and an avocation, my business to fall back on after leaving government service.

My federal employees’ retirement planning site helps me connect with thousands of retirees who are genuinely making retirement work for them and their families. Many travel extensively. Tom and Marlee, a couple in their 80s, have gone on 30+ cruises to date and have more scheduled. Many volunteer their time at church and various organizations to make a difference in their community.

Foot Loose and Fancy Free
Retirement at it’s Best

Ready, Set, Go

Shortly after retiring, one of my co-workers sold his home, stored his furniture, and he and his wife traveled throughout America in a motor home for two years before settling down.

Earl, an expert system specialist I worked with for many years, would often tour America on his vacations, traveling as far away as Alaska on his Harley with friends. He and his wife purchased a condo in Florida and moved there after retirement. Earl meets a group of retirees at a local gym to work out during the week, which keeps him and his friends not only engaged but healthy.

Phil planned to retire early and devote his time to outdoor activities. Unfortunately, health issues got in the way, and he wasn’t able to fulfill his dreams.

The key to a successful retirement is planning for and knowing upfront what you intend to do before leaving, as well as ensuring you are financially and physically prepared for retirement’s challenges. Take time to plan your exit and use our retirement planning site to help you through the process. Begin with our updated complimentary reports and Retirement Guide, listed below, to get started in the right direction.

• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• The Ultimate Retirement Planning Guide – Start Now!

What’s on Your Agenda?

Many expand their hobbies by joining associations, traveling to conventions, building workshops, and growing their collections. Carl, one of the individuals I worked with for many years, is now a master woodworker, creating beautiful furniture and turning pieces of wood into works of art. He also has a classic car that he and his family cherish.

Retirees often devote more time to their families, church, and charities, while others pursue a wide range of hobbies, including gardening, classic cars, cooking, sports, and collecting everything imaginable. Anything other than work for this group, and I can understand that.

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The Flip Side

Contractors often seek out federal retirees to return to work, frequently performing similar functions. Steve and Tom retired from the FAA and subsequently were hired by contractors, performing various tasks at facilities they previously worked with before retirement and at other locations around the country. They enjoyed working part-time and supplementing their annuities.

Many plan to grow a small business or non-profit. Randy started an engraving business and specializes in unusual and unique gifts for retirees and others. He had a side business while still in government that provided the foundation for his larger full-time business in retirement.

Chuck had several businesses, including designing and manufacturing custom golf clubs, and he became a golfing instructor at a local country club in northeastern Pennsylvania—a dream job for golfing enthusiasts.

I’ve been working non-stop since my early teens, over 60 years of continuous, uninterrupted work. I still enjoy the challenge of getting up each morning and going to work in my study after making coffee and toast for my wife and me.

When I retired, I expanded my part-time publishing business to full-time, which I started in 1985. I’ve sold off two-thirds of my business since 2009 to slow down a bit and explore other interests, plus our family and three grandchildren keep us on our toes.

ICE is Hiring 10,000 New Agents, Retired Annuitants Encouraged to Apply

Choices to Make

Long before submitting your retirement paperwork, sit down with your significant other to set your retirement agenda. You can’t do this on your own; your actions, whatever they are, impact your entire family.

Take the first step and don’t give up when things don’t go your way. Shake it off and start over to refine your plans and put things in motion. Others focus on their investments, expanding their knowledge to grow their retirement nest egg and estate for their heirs.

So many choices, and it’s all up to what YOU want to do for essentially the rest of your life. Abundant opportunities and experiences are awaiting you if you have the courage, desire, and tenacity to seek them out.

Words of Wisdom

I was thinking recently about how children in the 1950s and 60s were raised compared to today, and this came to mind; I had to write it down. Of course, there are exceptions with every generation; this is just a general observation.

“When you give someone everything, they expect more and appreciate little. When you provide them with the essentials, with limitations, they appreciate everything they receive and work hard to acquire more.”

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Free Retirement Planning Report
• Budget Worksheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2026 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Case Histories, CSRS, Emotionally Prepared for Retirement, FERS, Financially Prepared for Retirement, Retirement Activities, Retirement Choices, Retirement Planning, Retirement Plans, Retirment Observations, What to do in Retirement
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Thursday, 7th August 2025 by Dennis Damp

Each year, we publish a comprehensive leave record that federal employees can use to track their annual and sick leave, comp, and credit hours used. Our updated 2026 Excel Leave Chart is designed for active federal employees who are planning their retirement and need to establish realistic target retirement dates. This spreadsheet also helps federal employees maximize their annuity through prudent management of their leave balances.

This leave record tracks all leave balances, and you can annotate your work schedule on the spreadsheet. Download the spreadsheet to your desktop for easy availability and please share it with everyone in your agency.

2026 Leave Record, and Schedule Tracker

  ICE is Hiring 10,000 Agents, Many with Signing Bonuses
(Annuitants Encouraged to Apply)

 Retire With More

Most employees approaching retirement plan to increase their annuity and lump sum payments by maximizing their annual leave buy-back and sick leave balances. Convert your unused sick leave to increase your annuity for the rest of your life! Well worth the effort. I sold back a full year of sick leave, 2087 hours, that added an additional year of service for my annuity calculation.

A federal employee who separates from the Federal service is entitled to payment, in a lump sum, for all unused annual leave accrued through the last whole pay period before separation.

Federal employees are allowed to carry over up to 240 hours of annual leave each year. Many, in the last year of work, apply their carryover balance to most, if not all, of the annual leave they accrue before retiring.

I sold back the full 240 hours of carryover leave plus the 208 hours I accrued in my last year of employment. This amounted to almost three months of pay, less taxes owed, that I received in a lump sum payment 6 weeks after retiring.  Review my retirement timeline to get an idea of what to expect the first three months after retiring.

The 2026 Leave Record Chart

Download the 2026 Leave Record Chart

If your spreadsheet opens in protected view, click the “enable editing” button in the yellow bar at the top of the form. However, if you don’t see the enable editing button, you may have an older version of Excel, or your IT department may have to allow the form to pass without restrictions. We also included a newer slsx workbook version that you can use if you have problems with the earlier version.

According to a Microsoft Office consulting firm, if the spreadsheet only opens in protected view status and the newer slsx version doesn’t correct the problem, talk with your IT staff. Some agencies increase their security settings to lock out certain documents based on set parameters. We include several hyperlinks in our spreadsheet to link users to additional supporting information, such as our sick leave conversion chart, and that may be the cause.

2026 holidays

*This holiday is designated as “Washington’s Birthday” as defined by the law.

**If a holiday falls on a Saturday, for most Federal employees, the preceding Friday will be treated as a holiday for pay and leave purposes. If a holiday falls on a Sunday, for most Federal employees, the following Monday will be treated as a holiday for pay and leave purposes.

Summary

The earlier you start preparing for retirement, the better. Set several retirement target dates, request annuity estimates from your HR department for selected dates, and review your annual and sick leave balances to maximize your annuity and leave buy-back amount.

Use our FREE online Retirement Planning Guide to help you through the process. One of our site visitors said, “I spent 3 hours on the web looking for answers to questions concerning federal retirement. After a Google search yielded your address, it took only 20 minutes to find all of my answers! Thank you!!!”

Take advantage of this free service to explore your benefits, estimate pre- and post-retirement income, expenses, and costs, and determine whether or not you are financially, physically, and emotionally prepared for retirement.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Free Retirement Planning Report
• Budget Worksheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2026 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: 2026 Federal Employees' Leave Schedule, 2026 Federal Holidays, Daily Brief, Excel Federal Employees' Leave Tracker, Federal Employees' Leave Balances
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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