Posted on Friday, 16th May 2025 by Dennis Damp

If you haven’t already, it’s time to order this year’s annuity booklet at OPM Services Online. The 2025 booklets are available for download, and a copy will also be sent via regular mail if requested. I order a new copy each year; it is 28 pages long and outlines all of your benefits, annuity information, and survivor’s benefits, including your survivor’s annuity.

BLUE Book (Benefits Summary Booklet)

Request an updated retirement benefits booklet through OPM’s Online Services. All retirees receive a comprehensive multi-page pamphlet titled “Your Federal Retirement Benefits” from OPM when they retire. My booklet is 28 pages long. Request your updated copy by selecting the Document Section, the last item listed on the Dashboard’s main menu, and clicking on “Request Booklet.”

Many annuitants order a copy each year with their updated benefits information and place the booklet in their retirement or estate planning file. You can also request a copy of the original booklet you received when you first retired, if you lost your copy, and compare it to the most current version.

If you haven’t signed up for OPM’s Online Services, follow the sign-on guidance in my article titled “OPM Services Online Access Changes.”

Old Hard Copy Version (Blue Book)

This booklet is a wealth of information and includes all your personal retirement information, such as your CSA number, annuity breakdown, survivor elections, and benefit elections. This website’s document section also provides quick access to your 1099-R forms for the past five years, as well as downloadable annual and monthly annuity statements.

This year, you can request a downloadable PDF version for easy access. You can request a hard copy paper version from OPM by calling 1-888-767-6738. Those calling OPM are still placed on hold for extended periods during peak times during the week.

What’s New in the Download Version

This 18-page PDF version is formatted for a standard 8.5” x 11” page, allowing it to be easily added to a retirement planning binder with three-hole punching. There are several helpful features that the printed booklet doesn’t have. For example, it includes active hyperlinks to referenced websites and PDF reports. Click on the PDF download version link, and you will be directed to the relevant service, such as the link to OPM’s Retirement Services Support Center.

There is a comprehensive section on how to contact OPM and other helpful organizations. This section links you to multiple areas of interest for retirees. It includes phone numbers and hyperlinks where appropriate for Social Security, Medicare, the IRS, the Federal Long Term Care Program (FLTCIP), and the Federal Employees’ Group Life Insurance (FEGLI) program.

New Downloaded Retirement Benefits Pamphlet

One of the sections lists your benefit summary and everything that is deducted from your monthly payment:

• Current Gross Monthly Benefit

Less/Plus

• Health Insurance Premium
• Checking/Savings Allotment
• Federal Income Tax
• Federal Dental Insurance
• Federal Vision Insurance
• Federal LTC Insurance
• Net Monthly Benefit

Overall, I like the downloaded version and the direct link to the relevant referenced websites. The old blue book version is no longer available. If you request a copy by mail, they send a printed copy of the download version.

Other Request Options

You can also email OPM if you aren’t signed up for their online services at retire@opm.gov or send a written request to the U.S. Office of Personnel Management, 1900 E Street, NW, Washington, DC 20415-1000. OPM advises, “The internet is not a secure environment for transmitting personal information via email.”

End Notes

This pamphlet is an essential document for your heirs when that time comes. You’ll find detailed survivor information, your spouse’s monthly annuity amount that he/she can expect, your insurance elections, and so much more. It goes on to describe how to contact OPM when the annuitant dies, all in one convenient package.

Keeping this pamphlet with your retirement papers or estate plan is a no-brainer and a must, so your heirs won’t be left in the dark and unsure of what to do or who to contact. Additionally, download our fill-in PDF Master Retiree Contact List, which includes other services and contact numbers you may need.

I typically order or download a new Blue Book as early as February each year for my records. Now, download a copy, print it out, and file it where it can be easily accessed whenever needed.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Benefits Booklet, Retiree's Benefots, Retirement Benefits Summary
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 9th May 2025 by Dennis Damp

Our updated Excel annuity calculator spreadsheet projects your annuity and maximum survivor benefit growth through 2065 using an estimated average annual Cost of Living Adjustment (COLA). Frank Cullen, an old friend who retired from federal service many years ago, developed this calculator.

In the following sample chart, the retiree’s annuity increased 75% over the next twenty years, with a projected average COLA of 2.83%. This estimate could be conservative, considering the inflation we have experienced over the past few years. If stagflation takes hold, the average annual COLA could be higher.

Projected FERS/CSRS Annuity Calculator (Sample)

ESTIMATED ANNUITY INCREASES

Those planning their retirement can use this spreadsheet to estimate the growth of their annuity and their spouse’s survivor benefit over time. Use your actual annuity or estimates you receive from your human resource office, if still employed, for these projections.

This spreadsheet, originally developed for CSRS retirees, accurately determines your projected monthly and annual annuity, based on an estimated average COLA growth rate, with and without survivor benefits for 40 years, and your survivor’s annual and monthly annuity. FERS retirees can use this spreadsheet with minor adjustments noted below and on the Excel form.

USING THE SPREADSHEET

Current federal employees doing advanced planning can use our Annuity Calculator to estimate their annuity for various target retirement dates.

The spreadsheet lists annual COLAs going back to 1975 for CSRS and 1995 for FERS. It includes the average 2, 3, 5, 10, and 50-year COLA growth rates to give you an idea of what to use for your estimate.

When I ran my numbers in 2005, I used 2.5%, and my annuity and survivor’s projections were close to the chart’s results for the 21 years I’ve been retired. The average CSRS COLA over the past 50 years is 3.75%, and 1.89% for FERS employees over the past 31 years. During these periods, COLAs ranged from as low as 0% for three years to as high as 14.3% in 1980! This year’s COLA was 2.5% for CSRS and 2.0% for FERS. The COLA for 2026 is still to be determined.

Projected Annuity Calculator (Excel Spreadsheet)

Download and use the Projected Annuity Calculator to determine your potential annuity growth for you and your spouse. Enter your personal information in the four yellow blocks: the year you retire, annuity, an estimated average COLA, and your age at the beginning of the year. If the Excel chart opens in protected mode, click “enable editing” at the top of the spreadsheet.

FERS EMPLOYEES

For FERS employees, the projected annuity without survivor benefit will be the same; enter your annuity or annuity estimate, age, year of retirement, what you consider to be a realistic COLA growth rate, and the spreadsheet will calculate your annuity for the next 40 years! The column reserved for your projected annuity with survivor benefits will be lower since the maximum spousal benefit is 50% for FERS, not the 55% for CSRS.

To calculate the FERS survivor’s benefit, multiply the “Projected Annuity Without Survivor Benefits” by .50 and divide this number by 12 to determine the monthly survivor benefit. For example, in the chart above, multiplying the first row’s 2026 “Projected Annuity Without Survivor Benefits” of $71,981 by .50 equals $35,990. Dividing this by 12 provides your spouse with a monthly annuity of $2,999.

END NOTES

I’m amazed at how much my annuity has grown thanks to our annual COLA increases. I’ve been retired for 21 years this December, and my annuity is now as much as my salary was when I retired in 2004! My annuity has increased by 70%! Many in the private sector would give their eye teeth for a COLA-adjusted annuity.

One of our newsletter subscribers uses this spreadsheet to estimate her Social Security earnings over the next few decades. It’s easy to do, pull up the spreadsheet and enter the year, your current Social Security annual benefit, what you consider to be an average COLA growth over time, and your age.

The readout under the column “Projected Annuity with Survivor’s Benefit” will show the potential growth of your Social Security benefit over the next 40 years. You can also enter your 401 (k) balance and project its growth over the years. Those in the private sector can use the estimator if they have a COLA-adjusted annuity from their employer, although that is relatively rare these days.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Anjnuity Estimates, COLAs, CSRS, Daily Brief, FERS, Projected Federal Annuity Growth
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 25th April 2025 by Dennis Damp

The hiring freeze has been extended to July 1, 2025, and applies to all executive departments and agencies regardless of their operational and funding sources.

This freeze prohibits filling vacant federal civilian positions or creating new ones, with exceptions for immigration enforcement, national security, and public safety. When the hiring freeze ends, agencies can hire no more than one employee for every four employees who depart from federal service, except for the above mentioned exceptions.

The memorandum does not apply to military personnel of the Armed Forces, positions related to immigration enforcement, national security, public safety or the Executive Office of the President.

New Federal Employee Category Established

According to a recent fact sheet issued by the Whitehouse, “The proposed rule tackles systemic issues in federal workforce accountability, addressing unaccountable, policy-determining federal employees who put their own interests ahead of the American people.”

This action implements the President’s Executive Action titled “Restoring Accountability to Policy-Influencing Positions Within the Federal Workforce.” Career employees with important policy-determining, policy-making, policy-advocating, or confidential duties are to serve as at-will employees.

These employees will keep their competitive status and must faithfully implement the law and the administration’s policies. This action re-establishes the “Schedule F” category that the previous administration canceled.

Illegal Aliens and Social Security Benefits

On April 15, 2025, the president issued a memorandum outlining the steps needed to ensure that taxpayer-funded benefits are provided only to eligible persons and do not encourage or reward illegal immigration to the United States.

According to a National News Desk and DOGE report, many noncitizens have obtained Social Security cards! Once a noncitizen is in the country under the asylum program, they can apply for a work permit. Once approved, Social Security automatically sends them a Social Security card without presenting an ID or going through an interview.

The Economic Policy Innovation Center states, “Aliens, even those otherwise inadmissible, are provided a reprieve from removal by being granted parole, asylum, or work authorization after applying for asylum. etc.” The inclusions are extensive and range from status as Afghan parolees, Venezuelan (CNHV) parolees, those listed as Temporary Protected Status (TPS), to many listed as withholding of removal by the previous administration.

Aliens can receive welfare benefits from many different public assistance programs, including:

• Food Stamps (the Supplemental Nutrition Assistance Program, “SNAP”)
• Child nutrition programs
• Temporary Assistance for Needy Families (TANF)
• Supplemental Security Income (SSI)
• Child Care and Development Block Grant (CCDBG)
• Earned Income Tax Credit (EITC)
• Child Tax Credit (CTC)
• Obamacare Premium Tax Credit
• Obamacare cost-sharing subsidies
• Medicare
• Medicaid
• Children’s Health Insurance Program (CHIP)
• Pell Grants
• Student loans
• Head Start
• Public housing

This memorandum directs “the Secretary of Labor, the Secretary of Health and Human Services, and the Commissioner of Social Security, in consultation with the Secretary of Homeland Security as necessary, shall take all reasonable measures, consistent with applicable law, to ensure ineligible aliens are not receiving funds from Social Security Act programs.”

End Notes

These updates are just a sample of what is happening today. We are all impacted by potential changes to our benefits, market volatility that impacts our retirement savings, government reorganizations and downsizing initiatives, inflation, and so much more.

When I was born, TVs were the new thing that most couldn’t afford, we were tethered to a phone that was a fixture in most homes, and our first phone was a party line that we shared with five other families. Computers were a distant dream, and many of our major appliances were a shadow of what they are and provide today.

Change brings both improvements and disappointments, depending on our circumstances. According to Greek philosopher Heraclitus, “The only constant in life is change!”

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Daily Brief, Hiring Freeze, Illegal Immigrants, Schedule F Employees, Social Security
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Thursday, 17th April 2025 by Dennis Damp

Federal employees and annuitants wait in the wings with each new Congress for the next shoe to drop. Federal employees fear their benefits are going to be cut! Most of the time, these rumors are unfounded and go by the wayside.

It may be different this time around. With the House and Senate passing the budget bill, only a majority is needed to pass the final bill after reconciliation, and the filibuster can’t be used to block it.

The following actions are not official proposals but have been tossed around by various committees over the years. Nothing is set in stone, and we won’t know what is in the bill until later this year, possibly as early as Memorial Day.

What’s May be on the table

• Potentially increasing federal employees’ FERS contribution rates to 4.4% for all FERS employees.
• Changing an employee’s high three years of earnings to the high five years to lower a new retiree’s monthly annuity.
• Eliminate the FERS supplement to Save between $5 billion and $13 billion over a ten-year period.
• The “Federal Employees Health Benefits Protection Act” proposes that OPM audit family members enrolled in the FEHB program and remove individuals not eligible for FEHB health benefits. This may extend to the PSHB program as well.
• Switch the FEHB program from its current shared premium model to a flat-rate “voucher” model.
• Require current FEHB enrollees to sign up for Medicare Part B to retain their FEHB coverage when they sign up for Medicare. Similar to what the PSHB now requires, there are several exceptions.
• There could also be a push to force FEHB participants into Medicare Part D or Medicare Advantage plans.
• Convert new federal employees to be at-will if they don’t accept a higher FERS contribution rate, thereby removing their merit-based civil service protections.

These are a few of what may lie ahead; only time will tell what changes will make it across the finish line. Organizations like NARFE and the federal unions will lobby for the status quo.

Where do we go From Here?

The federal workforce has been under assault since January, starting with deferred resignations, the loss of merit system protections for designated security positions, and the planned implementation of Agency RIF and Reorganization Plans (ARRPs).

USAID, along with specific DEI units within each Department, and others, have been disbanded, and employees furloughed or placed on administrative leave until the administration determines what to do with them. More to come as DOGE and the new agency heads continue to streamline operations across government.

We also don’t know what parts of any changes will be grandfathered or phased in over time, and there may be exceptions for specific categories or groups to lessen the impact on federal employees and annuitants.

If included at all, many proposals may not be fully implemented. Both parties have addressed these issues to some degree over the years. In the not-too-distant future, there should be clarity about what is and isn’t included.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: ARRPs, CSRS, EEarly Outs, Federal Employee Benefits, FEHB Changes, FERS Retirement, PSHB, RIFs
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 11th April 2025 by Dennis Damp

In April, more agencies offered deferred resignations and early outs through the Voluntary Early Retirement Authority (VERA). The dates for these offers vary per agency, and the time frame for this option is as short as 7 days.

The following list of departments and agencies have sent offers via email to their employees; more are sure to follow as most are tasked with reducing staffing by 10 to 15%:

• Agriculture
• Transportation
• Defense
• Energy
• Defense
• Energy
• HUD
• Veterans Affairs
• General Service
• Small Business Administration

What to Expect

Offers are made to those in noncritical specialties. They are only open for short durations, so you must decide quickly if you want to participate and accept a deferred resignation and/or VERA. The letters often include a list of occupations excluded from this offer.

The VA offers deferred resignation through September 30^th to 15% of its workforce, 70,500 employees. The DOT’s window was from April 1 through the 7^th, with only seven days to decide! This can be a life-changing decision that takes considerable thought and attention before signing on the dotted line.

Unverified reports indicate that approximately 4,000 DOT employees applied for deferred resignations under this second round.

The Fork in the Road Revisited

These offers mimic the original Fork in the Road offer in late January. The duration of payments is shorter because full salary and benefits are only offered through the end of September. OPM is more organized than when the first offers were sent out, and agency HR departments are now familiar with the process.

Summary

There will surely be more deferred resignation offers as agencies find creative ways to reduce staffing during these austere times. Many, if not most, positions are not eligible for these programs. The full-length article states, “These letters are a prelude to a pending Reduction in Force (RIF) and provide options to reduce or eliminate the negative impact a RIF will have on employees.”  

Stay tuned for additional updates as agencies continue to downsize and announce upcoming plans.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Daily Brief, Deferred Resignations, Fork in the Road, RIF, VERA
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 4th April 2025 by Dennis Damp

Please forward this to others that may find this informative.
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I wrote a version of this article in April 2022, and with the market sell-off, it’s a good time to revisit this subject. It’s impossible to time the market. One of the financial advisers I talked with years ago asked me this question: “Who are you investing for?” He suggested being more aggressive when investing for our heirs, as the market tends to increase over time. I respectfully disagreed with him. I don’t want to see what I worked a lifetime to accumulate decrease in value dramatically.

THE S&P 500 INDEX

The S&P 500 index has returned a historic annualized average return of just over 10% from 1957 through 2024. THRIFT Plan participants who held the C fund from its inception did very well, to put it mildly. Yet, retirees must weigh the risk associated with continuing an aggressive investment strategy in retirement.

Over the past 123 years, numerous recessions have occurred, including the Great Depression, which began in 1929. From the early 1900s onward, there were four significant recessions, with the longest recovery period spanning from 1929 to 1955, a duration of 26 years.

The average recovery period was 16.5 years! The shortest recovery period lasted only six years, from 2009 to 2015. What most have experienced since 1985 is a bull market interrupted by one recession, which lasted six years. Is another recession imminent? Only time will tell.

S&P 500 Index – 90 Year Historical Chart
Inflation Adjusted / Recessions Highlighted in Gray

The chart above illustrates the time it took the S&P Index to recover to its former levels.

MARKET CORRECTIONS & RECESSIONS

With a market sell off like this, many see their retirement nest egg decrease dramatically and panic. It’s purely psychological. We’re elated when markets rise and depressed during downturns. It takes a steadfast disposition to stay the course and ignore severe market fluctuations, regardless of your age.

It makes sense for many retirees to protect what they’ve worked a lifetime accumulating. I’d rather have one in the hand than two in the bush, my former boss related this sage advice when I was contemplating his job offer.

Market corrections are inevitable after extended periods of excesses. Our national debt now exceeds the country’s GDP. Considering the proposed Federal Reserve interest rate cuts this year, potential tariff impacts, continued inflation, and world unrest, how much will it take to tip the scales one way or the other?

I’m not a clairvoyant or an alarmist; I’m just a casual observer and a seasoned conservative investor.

RISK LEVELS

This current market unrest should encourage retirees and those nearing retirement to reassess their risk tolerance and review their investment portfolios. Federal annuitants often have multiple income sources to rely on, which affords them more latitude with their investments.

According to Charles Schwab, “The conservative allocation is composed of 15% large-cap stocks, 5% international stocks, 50% bonds, and 30% cash investments. The moderately conservative allocation is 25% large-cap stocks, 5% small-cap stocks, 10% international stocks, 50% bonds, and 10% cash investments. The moderate allocation is 35% large-cap stocks, 10% small-cap stocks, 15% international stocks, 35% bonds and 5% cash investments.”

Personally, at my age, I’m content with a moderately conservative to conservative allocation of mutual funds, ETFs, individual dividend-paying stocks, and a mix of bonds and cash equivalents. I consider I-Bonds, short-term Treasuries, and CDs to be cash equivalents and rely on them more than traditional bonds and bond funds.

Conservative portfolios typically aim to provide both capital appreciation and income for investors. Could I miss out if the economy improves and the market powers ahead? Certainly, but that is a tenable outcome that I can easily live with and is preferable to experiencing a dramatic decrease during an extended recession.

All portfolios that include stocks, mutual funds, ETFs, and bonds will be impacted by market volatility. The more conservative the mix, the less downside risk.

THRIFT PLAN & OTHER INVESTMENTS

THRIFT plan participants can mirror these allocations with existing funds. The TSP offers a mutual fund window that allows us to purchase a variety of mutual funds, including one-decision and balanced funds. The L Income Fund allocations are between moderately conservative and conservative portfolios listed above, with an annual return of 4.9% as of March 2025. The 10-year average return is 4.3%.

The Vanguard Wellesley Income Fund (VWINX) has a moderately conservative allocation and achieved a total return of 5.92% in 2024, with a 15-year average total return of 6.52%. The target allocation is two-thirds bonds and one-third stocks. It has a 4-star Gold Morningstar rating, and its management fee is only 0.23%.

They focus on value dividend-paying stocks and investment-grade bonds. VWINX aims to deliver long-term income growth and a high, sustainable level of current income alongside moderate long-term capital appreciation. This fund fully recovered within less than one year during the 2008-2015 recession.

Another conservative balanced fund is Vanguard’s Wellington Fund (VWELX). It invests approximately two-thirds in growth stocks and one-third in fixed income securities, including bonds. It has a moderate allocation and achieved a total return of 14.76% in 2025, with a 15-year average total return of 8.73%. This 5-Star (GOLD) Morningstar-rated fund’s management fee is only 0.25%. VWELX has been in operation since 1929 and aims to deliver long-term capital appreciation and a reasonable current income. It dropped 22% during the 2008 recession and recovered eighteen months later to its previous high. It took the S&P Index 6 years to recover.

Conservative Portfolios

With conservative portfolios, the challenge is to find a decent rate of return on fixed-income investments. Treasury Bills and notes continue to provide decent returns. The balanced funds mentioned above manage their equities and bond investments to maximize yield and capital gains. They are professional money managers; their past performance is a measure of their effectiveness over the years. There are many one-decision conservative funds; it takes research and time to find the one that is right for you.

Professionally managed bond funds are also available, such as the Dodge & Cox Income Fund (DODIX) and Fidelity’s (FTBFX), both of which have a Morningstar Gold rating. However, if interest rates increase, bond funds generally move in the opposite direction; the shorter the duration of the bond fund, the less downside risk it incurs. Individual bonds held to maturity don’t have the market risk that bond funds have.

If you purchase a Treasury, corporate, or municipal bond of any duration and don’t sell it on the secondary market before maturity, you will receive the principal and all interest due. You can purchase individual bonds and Treasuries through your broker or buy Treasuries directly through TreasuryDirect.gov. Investment-grade bonds carry minimal market risk. The TSP G Fund is one of the few bond funds I’m aware of that is guaranteed not to decrease in value. It yielded 4.47% last year, with a 10-year average yield of 4.65%.

I-Bonds are now paying 3.11%, including a 1.2% fixed rate, and those issued in 1999 pay over 5%. Even EE Savings bonds offer a 3% yield if you hold them for at least 20 years. Currently, short-term treasuries are paying more than most bank savings accounts.

CONCLUSION

Conservative portfolios typically aim to provide both capital appreciation and income for investors. Could I miss out if the market powers ahead? Certainly, but that is a tenable outcome that I can easily live with, and it is preferable to experiencing a dramatic decrease in portfolio value during an extended recession.

All portfolios are impacted by market volatility and the more conservative the mix, the less downside risk.  Downturns like this can reverse on a dime as issues are resolved, this may not be the time to panic.  Here are several articles that may help you reevaluate your personal situation and sleep better at night during times like this:

• Is the Stock Market Keeping You Up at Night?
• How to Keep What You Worked a Lifetime Accumulating
• Have You Considered Hiring a Financial Advisor

The information contained herein should not be considered investment advice and may not be suitable for your situation.

Helpful Retirement Planning Tools

Federal employees and recent retirees with security clearances can
search thousands of high-paying defense and government contractor jobs.

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Conservative Portfolio, Market Correction, Market Downturn, Recession, S&P 500, Sensible Investing
Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Monday, 31st March 2025 by Dennis Damp

President Trump signed an Executive Order (EO) on March 27, 2025, that ended collective bargaining for agencies that perform intelligence, counterintelligence, investigative, or national security functions.  This impacts many Departments and agencies, including the VA, Department of Defense, and even the Department of Agriculture, to name a few.

This is a significant change, and agency heads are working with their general counsels to implement this EO as soon as possible. Review the complete details and the impacted agency list, which includes the suspension of the associated collective bargaining agreements (CBAs).

This action was required for the administration to expedite the Agency RIF and Reorganization Plans (ARRPs). They permit the identified agencies to expedite RIF actions and removals, decrease the time required for performance improvement plans, and return to in-person work for employees whose collective bargaining agreements (CBA) are canceled.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

This service is not affiliated with OPM or any federal entity. You should consult with professionals where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: ARRPs, CBAs, CBAs Canceled, Collective Bargaining Agreements, Daily Brief, NEWS, RIFs
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 28th March 2025 by Dennis Damp

Despite the overall uncertainty in the federal sector now, many in the national security workforce have, for the most part, been exempt from significant disruptions.  With few exceptions, most organizations, including those working in national security, will be included as Agency RIF and Reorganization Plans (ARRPs) progress.

Holding on to What You Got

Federal employees who hold an active security clearance retain their credentials for up to two years after leaving their position. You can transition to another job that requires a clearance, whether within or outside government, provided you stay compliant and no violations are noted on your record.

Staying up-to-date with new developments in your field and refining your skills in emerging areas, such as AI, can enhance your chances of securing a related and high-paying position.

Security Clearance Defined

A security clearance is a determination by the United States government as to whether a person or company is eligible to access classified information. There are two types of clearances:

• Personnel Security Clearances (PCLs) and
• Facility Security Clearances (FCLs).

Most agencies have three levels of security clearances: Confidential, Secret, and Top Secret.

Security clearance determinations can be made relatively quickly, depending on the circumstances and the level of clearance applied for. It can take anywhere from a year to more, depending on the specific circumstances.

There are three phases to the process:

• Application,
• Investigation, and
• Adjudication

Typically, clearance delays are attributed to the investigation phase or are caused by an application that is not properly completed.

Six One Way, Half Dozen the Other

A Security clearance remains with you for at least two years after leaving a position, providing time to explore other clearance opportunities within and outside the government.  Often, during major reorganizations, the baby is thrown out with the bath water!  In other words, government agencies overreact and must hire back positions that should have never been vacated. This also occurs in the private sector, and for those who stay attuned to their fields and don’t burn bridges behind them, many opportunities may emerge.

Opportunities Rise from the Ashes

This doesn’t only apply to security positions; it applies to everyone who was shown or will be shown the door as the ARRFs come to fruition. Many federal workers in major metropolitan areas, particularly in the DC area, may receive PSC orders to relocate to field facilities nationwide. Many are unwilling to do so, even when offered attractive relocation incentives.

It’s a fact of life that I experienced during my 35-year career. During the reorganizations in the late 1990s, I was amazed at how many employees working in the DC and New York areas refused to relocate and quit rather than move across the country.

This creates job opportunities at those locations or for returning federal employees who were recently let go!

Government Spending Cuts, RIFs, and Early Retirements Fast Tracked – Why and When?

Summary  

Yes, these are trying times for federal workers in all occupations to one degree or another. The mere potential loss of your job, no matter how secure you think it may be, is both disheartening and frightening.

Disruption creates opportunities as long as you take the time to find your bearings and seek them out. Federal employees who are forced to leave or retire should retain a copy of their electronic Official Personnel File (eOPF). Your HR office will provide one for you if you request it. The file verifies your service, beneficiaries, benefit elections, and clearances, providing a wealth of information that you can use to apply for other positions within your specialty.

Helpful Retirement Planning Tools

Additional Agency Reductions Planned

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: ARRFs, Daily Brief, Early Retirements, eOPF, eOPF Guidance, Job Opportunities, PCS Relocations, RIFs, Security Clearance
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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