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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Posted on Friday, 21st March 2025 by Dennis Damp

Most retirees and federal employees approaching retirement are concerned about rising cable and Internet costs, largely due to the cable companies’ decades-long monopoly. My monthly cable bill is currently $347.76, which is my largest utility bill.

I wrote an article last year about cutting the cord, which focused on ways to reduce excessive cable bills, and I experimented unsuccessfully with several streaming options. My son, Dennis Jr., took the lead and just cut his bill in half. Here is his story that I edited and added a closing.

The Saga Begins

I received my cable and internet bill in January 2025 and was shocked by the increase in cost. I’m sure some of you reading this article have felt the same way. In 2024, I was paying $195 per month through Xfinity (Comcast), and my January bill increased to $212.

For reference, I live in Pittsburgh, PA.  While this may not seem like a significant increase year over year, I had negotiated my price down to approximately $ 150 five to six years earlier. Every year, I seemed to receive a price increase, yet my service remained unchanged.

My Subscription

I had considered cutting the cord for many years and finally decided to make the change. My cable services are listed below and aren’t worth the year-over-year cost increases.

• Cable TV, including most sports channels like the NFL Network and local sports networks, as well as AMC, TBS, and TNT.
• 500 Mbps Internet service
• One cable box which included DVR service
  • I didn’t have pay channels or Apps like HBO or Netflix
  • No paid sports packages, such as Red Zone, were included in my cable package, except for ESPN and NFL.

I had one cable box with internet and no pay channels. I kept cable for years since my kids liked Disney Jr., and I watched local sports. Recently, I noticed that my kids were spending more time watching YouTube Kids on their iPads than they were watching Disney Jr. I decided it was time to try a new lower-cost streaming service by cutting the cord.

First Things First

Before you cut the cord, contact your local cable service to see if they can offer you a reduced rate. I did call Comcast, and they were willing to make changes, but the savings weren’t quite what I was looking for. They excluded some of the channels that I wanted to keep. With prices skyrocketing everywhere, any savings you can achieve is worth pursuing.

Verizon was offering two packages: 300 Mbps internet for approximately $36 per month or 1 GB for around $66 per month. All taxes and fees were included in the price, along with free installation. Additionally, a 5-year price lock was offered if you ordered by a specific date.

My kids and I have numerous internet-connected devices in the house, including computers, game consoles (such as the Nintendo Switch and PlayStation), phones, and televisions. You would be surprised at how many electronic devices in your home utilize the internet, including smart devices such as thermostats, cameras, video doorbells, and even appliances in some instances.

I opted for the faster internet speed, especially for online gaming, such as Fortnite and Call of Duty. The cost was reasonable, with a 5-year price lock, and included a router and one extender. They also included a free year of Netflix and Max (with ads). After the first year, the cost would be only $10 per month for both. This seemed like a great deal over time.

Live TV

My next step was researching how to get live TV, including local news, sports, and kids’ channels. Although there are several others available, I focused on FUBO and Google TV. The two options were relatively similar, featuring local news and children’s channels.

I watch local Pittsburgh sports, so I wanted an option that potentially included Sports Net Pittsburgh.  While Google TV offered a wide range of sports options, they didn’t include local sports.

FUBO offered a local sports option as part of their pro package.  Both option’s pricing ranged from around $85 to $90 at the time of writing.  You need to visit their websites and verify that the channels you require are available on the specific services.

Saving Even More!

Could I survive without a live TV service?  I purchased an affordable digital antenna on Amazon that offers 1080p picture quality or higher, boasting 5-star reviews, and you’ll find several options to choose from.  I chose one that is flat and fits behind my smart TV.

Essentially, my primary local channels include CBS, ABC, FOX, and NBC, as well as many others, such as LAFF TV and QVC, which are also available using the digital antenna hooked up to the TV’s coaxial cable port.  I receive approximately 50 channels, and the main local broadcasts are actually in HD quality!

You may need to position the antenna closer to the window for certain channels.  For example, ABC only came in on my TV if I placed the antenna near a window.  I decided to keep my antenna behind the TV for now, as it looks better that way. However, if I ever watch ABC, I can place it near the window.

It took me a while to set up the over-the-air channels on my smart TV. Check your TV’s broadcast settings. Typically, newer smart TVs feature a search function that allows users to find channels.  This process can take several minutes to complete.  Overall, it’s relatively easy to set up, and I find myself and the kids watching LAFF TV a lot, as it includes several very funny sitcoms from the past.

Additional Agency Reductions Planned & More Executive Orders Repealed

The End Game

Ultimately, I decided to go with Verizon Internet, including Netflix and MAX. I’m getting my local channels through the digital antenna, which works great.  As I mentioned earlier, I wanted a local sports channel, so I opted for a monthly subscription to SportsNet Pittsburgh, which, at the time of writing, costs approximately $18 per month. I can now watch the Pittsburgh Penguins and the Pittsburgh Pirates baseball games. The Steelers games are sold out, so all of their games are broadcast live on the local channels.

My total bill is currently under $100 per month, but I still have some nice options.  I’ve decided to forgo both FUBO and Google TV.  If I were to opt for those options, plus my Verizon internet, I’d be spending around $150 or more per month.  It would still be a savings over cable, and I would get more popular channels, plus other sports networks like ESPN and the NFL Network.

I’m about a month in, and honestly, I don’t miss much in the way of network programming. This ultimately comes down to a matter of personal preference, and everyone must conduct their own research to determine what works best for their family.

While I may switch to another live internet TV service in the future, I don’t see myself going back to cable.  Cutting the cord is saving me just over $112 a month, or $ 1,344 a year. It can be worthwhile in the long run, but you’ll need to learn new apps and adapt to new programming methods using your TV remote.  Best of luck in your research and cutting the cable cord!

Conclusion

You can save a substantial amount by converting to streaming, but, as my son suggests, it takes time, research, and a learning curve before it becomes second nature.  Frustration can prevail for some time because you don’t have the cable company to call to get you up and running and back on track.

Cable companies offer standardization between different TVs and include apps in their setup, all of which can be controlled with a single cable remote. These costs are becoming increasingly disproportionate to what they offer. For example, we have hundreds of channels that we never watch, and they won’t let you select only the channels you want to watch.

You would think a cottage industry would be flourishing across the country, offering streaming conversions like this since it can save substantial costs, especially for retirees living on a fixed income.  These streaming conversion companies could operate on a commission basis, asking clients to pay a percentage of their first year’s savings with no upfront fees after everything is up and running.

This is a great startup company idea for some of the younger folks reading my column. If someone came to me and said they would save me around $2,000 a year, I wouldn’t mind paying them a one-time fee with some phone support included to move from cable to a lower-cost streaming service.

I may still follow my son’s lead, especially since I can call on him, not if but when I run into technical problems.

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: cable services, Cutting the Cord, Internet Services, Reducing Costs
Posted in FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Thursday, 13th March 2025 by Dennis Damp

In January, the Federal Reserve kept the fed funds rate steady at the 4.25 %-4.5 % range, pausing its rate-cutting cycle after three consecutive reductions in 2024. During the last meeting, the Fed indicated that economic activity continues to expand, the unemployment rate has stabilized at a low level in recent months, labor market conditions remain solid, and inflation remains somewhat elevated.

In February, the inflation rate decreased for the first time in three months, and the unemployment rate held steady at 4.1 %, a slight decrease from January’s 4.0 %. The next Federal Reserve interest rate meeting and decision is due on March 19th, 2025.

While the stock market offers the potential for higher gains, it doesn’t come without risks for those approaching retirement and retirees, as evident from the volatility this past several weeks.

Treasury Bill Rates Still Attractive

According to the FDIC, the national average savings account yield has dropped to 0.41 percent APY, while the average checking account rate is a meager .08 %, and money market rates average .68 percent.

Higher rates are available from some banks, including those available online. The average money market yield would earn you a measly $68 per $10,000 savings for the entire year!

Treasury Bills are still earning around 4.3%. You can select “auto reinvestments” for up to two years. Auto renewals can be stopped prior to the next reinvestment date if the funds are needed. The rates change for each new issue. The shorter-term (4, 8, and 13-week) Treasury Bill yields have averaged 4.3 to 4.5 percent over the past year and the 10-year Notes recently yielded 4.625 %.

Although the Federal Reserve intends to reduce rates over time as conditions warrant, Treasury Bills continue to earn attractive yields. Treasury interest payments aren’t subject to State taxes.

Treasury Bill Investment Rates

Purchasing Treasury Bills, Notes, and Bonds

Visit TreasuryDirect.gov to register, explore the options, and purchase Treasury bills, notes, bonds, TIPS, and savings bonds. You are buying directly from the government and eliminating the middleman; no fees are charged for purchases.

Most brokerage accounts offer clients access to Treasury auctions and will purchase them for your account; they can be sold on the secondary market if needed. Here is more information on the Treasury’s programs:

• Treasury Bills In-depth
• Treasury Notes In-depth
• Treasury rates (Yields)
• Auction schedule

Note: If you buy a long-term Treasury Note or Bond, you can only sell it on the secondary market through a brokerage house. If you purchase Notes and Bonds on Treasury Direct, you must transfer them to your private brokerage account to sell them before the maturity date. I only purchase long-term Treasuries through my broker in case I need to sell them before maturity.

 Agency RIFs and Reorganization Plans (ARRPs)

CDs and Savings Bonds

Many online banks, credit unions, and some regional banks are offering competitive rates for savings accounts and CDs, from 3.5 percent to higher in many cases. Rates are not falling as fast as the Fed anticipated, and I’m still rotating savings through short-term T Bills at attractive rates. Longer term CDs or 2, 3, 5, 7, or 10-year Treasury Notes can lock in higher rates. CDs have no market risk if you stay under their insured FDIC limits.

Treasury Notes currently offer anywhere from 3.875 to 4.625 percent. These notes also have the potential for capital gains if interest rates continue to decline and you decide to sell them on the secondary market before maturity.

Treasury Note Interest Rates

I-Savings Bond Rates 

I Bonds issued November 1, 2024, to April 30, 2024, earn 3.11%. This includes a 1.2% fixed rate. You can’t cash them in for one year. Plus, if you redeem them within the first five years you lose three months’ interest.

If the I Bonds you purchased previously didn’t have a fixed rate, you will only earn the inflation rate when the new rates are announced for the next six months. I Bonds with a high fixed rate are a great buy, some of my early I Bonds have a 3% fixed rate and are currently earning 5.33%. Here is a table that shows what I Bonds are earning today based on the date of purchase.

Many I-bonds were sold with a zero fixed rate, which can dramatically reduce returns as the inflation rate decreases. On the flip side, when the inflation rate goes negative, like it did in the late 1990s, I-bonds don’t decrease in value.

Dissecting DOGE – Purpose and Process explained

Market Observations

Considering the uncertainty around tariffs and other factors, the stock market has been on a roller coaster ride this past month. Brokerage accounts invested in equities have suffered the most while we wait for stability to return.

This highlights the necessity for those planning their retirement and retirees to consider more stable fixed-income investments, as outlined above. This is especially true if the stock market is keeping you up at night.

Summary

The rule of 100 still applies for those approaching retirement. Subtract your age from 100, and the remainder is what many financial planners consider a conservative investment mix to reduce risk as we age. For example, if you are 65, according to this formula, you should have only 35% of your retirement portfolio in stocks, with the rest in bonds, money market accounts, and cash.

I still prefer to invest in the safety of Treasuries, CDs, conservative stocks, mutual funds, and market leaders that have been around for many decades, pay dividends, and have sound fundamentals. Many retirees set aside a small portion of their investments for the more aggressive growth stocks, mutual funds, and ETFs of the day.

CDs and Treasury Notes are viable options if you can lock up your discretionary savings and investments for 12 months or longer. As noted on the above charts, Treasury Bill rates are moderating down a bit.

Short-term T-Bills continue to provide impressive yields, considering many banks still low ball their savings rates for established accounts. These banks are betting on the reluctance of many to move funds from their savings and checking accounts elsewhere.

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.

Posted in UNCATEGORIZED

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Posted on Friday, 7th March 2025 by Dennis Damp

In last week’s article, I said, “DOGE is moving too far and fast, as evidenced by the chaos surrounding it,” and further stated, “They should allow each agency head to work within their organizations to streamline if needed.”

Someone in the administration read my last article! Actually, the President’s cabinet and many others were complaining about the problems encountered with the fast pace of the cuts.

At his second cabinet meeting last week, the President announced that Cabinet secretaries, not Musk, had the final say on staffing and policy at their agencies.

There is still some confusion about whether employees must report their accomplishments weekly. Many agency heads have advised their employees not to reply; others still require a weekly report.

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The Path Forward

President Trump and DOGE aren’t taking their foot off the gas; the President is reverting to cruise control to moderate the pace. On Truth Social, the President stated, “It’s very important that we cut levels down to where they should be, but it’s also important to keep the best and most productive people.” His cabinet will meet every two weeks to manage this transformation.

The cabinet heads are now fully engaged in streamlining their organizations and determining what needs to be done to reduce fraud, waste, and abuse.

The Secretaries will work with agencies and intend to be precise about who remains and who will go. The President indicated, “We say the ‘scalpel’ rather than ‘hatchet.’ The combination of them, Elon, DOGE, and other great people will be able to do things at a historic level.”

The Next 7 Months

OPM published comprehensive guidance on February 26, 2025, directing agencies to develop comprehensive Agency RIFs and Reorganization Plans (ARRPs). All agencies must develop phase 1 plans by March 13, 2025. These plans are intended to improve services, increase productivity, and reduce unnecessary positions, real property, and expenditures wherever possible.

Phase 2 plans must be submitted for review and approval by April 14, 2025, and implemented by September 30, 2025. These plans cover 17 major areas, including consolidations, preparation for RIFs, establishment of new organizational charts, technology improvements, and much more.

Conclusion

A lot will happen over the next few months in the federal sector. Changes are coming at lightning speed compared to how they took place in the past. This President is committed to rightsizing the federal sector, organizing operations to provide their intended services efficiently, reduce office space wherever possible, and eliminating wasteful spending.

Full implementation of the ARRPs is expected to begin this September, sooner once the new budget is approved and funds are available. However, many initiatives will take much longer to accomplish when you factor in employee relocations, downsizing leased space, establishing centralized offices, hiring the right mix of talent for locations, and auctioning off excess property.

Anyone anticipating being impacted from potential RIFs can explore their options to prepare for what may come their way. You should also work closely with your HR office to determine what is available based on your personal situation.

Additional information – DOGE and federal downsizing:

• Federal Agencies Prepare for Reorganizations with Planned RIFs
• Dissecting DOGE – Purpose and Process explained
• New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs
• The Future of Federal Telework: New Rules, Union Pushback, and What Comes Next in the Return to In-person Work Shift
• The Department of Government Efficiency (DOGE): Disruption Creates Opportunities
• OPM Orders Return to in-person work – Accepting Deferred Resignations

Helpful Retirement Planning Tools

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

• Retirement Planning Guide for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Complimentary Retirement Planning Session
• Deciding When To Retire – A 7-Step Guide
• How to Avoid Retirement Processing Delays (UPDATE)
• Hiring a Financial Planner
• TSP Guide
• Budget Work Sheet
• 2025 Federal Employees Leave Record
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

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, Cabinet Members, DOGE, Downsizing, Elon Musk
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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