Posted on Friday, 17th April 2026 by Dennis Damp

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Taxes are a conundrum that creates widespread confusion due to constant changes and the sheer volume of regulations governing every aspect of completing our tax returns.  I’ve used TurboTax since its inception, and that has calmed the waters for my family to a point. Yet every time you turn around, another taxing challenge rears its head, affecting our benefits.

I’ve tried using IRS Form 1040-ES (Estimated Tax for Individuals) several times and typically give up after about 15 minutes. It’s too confusing and downright frustrating, to say the least. There is an easier way to get to a ballpark figure that I’ve used for several years.

David D, one of our newsletter subscribers, recently sent me an outline of how he determines his quarterly estimated taxes. He uses a similar procedure. I expanded on his outline and included tax tables, explanations, and a sample you can use to estimate your payments.

Typically, if your income doesn’t change much from year to year, it isn’t a problem; it’s when you have unanticipated capital gains, increasing RMDs, unanticipated TSP withdrawals, additional interest income, or have a part-time job or small business that can muddy the water.

Also, as we age, our Required Minimum Distributions increase every year, and before you know it, you’re in another tax bracket. That means your Medicare Premiums are sure to increase as well; that’s for another article.

Getting Started

Many self-employed individuals, contractors, and retirees with non-withheld income struggle with a recurring challenge: determining how much in estimated taxes to pay the IRS each quarter to avoid penalties. The good news is that you don’t need complicated software or a tax degree to make a reliable estimate. With a few basic numbers and a simple formula, you can calculate quarterly payments that keep you compliant and avoid underpayment penalties.

Start With Your Expected Annual Income

Begin by estimating your total taxable income for the year. Print out this article and enter the amount of income for each of the items listed below. Include all sources, regardless of whether you have federal taxes withheld. You will deduct federal tax withholdings for each entry to determine the total amount of estimated taxes to submit for the year:

• $__________ Pensions (Approximately 90% to 98% of a FERS or CSRS federal pension is taxable annually, my 1099-R from 2025 shows that 3% of my annuity wasn’t taxed.) You can deduct that amount from your total if desired.
  • Federal tax withheld $_________
• $__________ *Social Security Income (Taxed at 50 to 85% for many)
  • Federal tax withheld $_________
• $__________Part-time work
  • Federal tax withheld $_________
• $__________ Self‑employment income (Net)
  • $__________ Add tax of 15.3% (Add to taxes due for this year)
• $__________ Consulting fees
• $__________ Taxable Investment income (Sum of the list below)
  • Interest
  • **Dividends
  • ***Capital Gains
• $__________ Rental income (Net after expenses)
• $__________ Withdrawals from retirement accounts (Other than RMDs)
  • Federal tax withheld $_________
• $__________ RMDs
  • Federal tax withheld $_________
• $__________ Total Income (Tax Rate from tables =___%)
• Total tax withheld $_________
• Total Income – Taxes withheld equals Estimated Annual Federal Tax Due

*Social Security benefits become taxable if your “combined income” (adjusted gross income (AGI) + nontaxable interest + 50% of benefits) exceeds $25,000 for individuals or $32,000 for married couples filing jointly. Up to 50% of benefits are taxed at these thresholds, increasing to 85% if income exceeds $34,000 (single) or $44,000 (joint).

Due to these limits, many federal retirees end up paying federal taxes on 50% to 85% of their Social Security benefits each year, depending on their AGI.

**Qualified dividends are taxed at lower long-term capital gains rates (0%, 15%, or 20%), while non-qualified (ordinary) dividends are taxed as ordinary income, often resulting in higher tax liability. Qualified dividends require specific holding periods (61 days or more within a 121-day window) and originate from US or qualifying foreign corporations.

***For 2025, federal long-term capital gains tax rates of 0%, 15%, or 20% apply to assets held over one year, based on taxable income. The 0% rate applies to income up to $48,350 (single) or $96,700 (married filing jointly). High earners may also pay an additional 3.8% Net Investment Income Tax (NIIT).

How to Minimize Taxes with a TSP Roth Conversion

2025 Federal Long-Term Capital Gains Tax Brackets

These rates apply to assets held for more than one year.

0% Rate:

Single: Taxable income up to $48,350.

Married Filing Jointly: Taxable income up to $96,700.

Head of Household: Taxable income up to $64,750.

15% Rate:

Single: Income over $48,350 up to $533,400.

Married Filing Jointly: Income over $96,700 up to $600,050.

Head of Household: Income over $64,750 up to $566,700.

20% Rate:

Single: Income over $533,400.

Married Filing Jointly: Income over $600,050.

Head of Household: Income over $566,700.

If your income fluctuates, use a conservative estimate based on what you reasonably expect to earn.

Subtract Your Deductions

Next, subtract either the standard deduction or your itemized deductions from the total household income. Most taxpayers use the standard deduction, which simplifies the process. The result is your estimated taxable income.

The 2025 standard deduction, adjusted by the One Big Beautiful Bill Act (OBBBA), is $31,500 for married couples filing jointly, $23,625 for heads of household, and $15,750 for single individuals and married filing separately. These higher amounts apply to tax returns filed in early 2026.

Apply Your Tax Rate

To avoid getting lost in the IRS tax tables, use a blended tax rate. For many taxpayers, a reasonable estimate falls between 15% and 22% of taxable income, depending on filing status and income level. If you want to be cautious, use the higher end of your expected bracket. Multiply your taxable income by your chosen rate to get your estimated annual tax liability.

For the 2025 tax year (taxes filed in early 2026), the federal income tax rates remain 10%, 12%, 22%, 24%, 32%, 35%, and 37%, with income thresholds adjusted upward for inflation. The 10% bracket applies to taxable income up to $11,925 for single filers and $23,850 for married couples filing jointly.

2025 Federal Income Tax Brackets

• 10%: Up to $11,925 (Single), Up to $23,850 (Married Joint)
• 12%: $11,926–$48,475 (Single), $23,851–$96,950 (Married Joint)
• 22%: $48,476–$103,350 (Single), $96,951–$206,700 (Married Joint)
• 24%: $103,351–$197,300 (Single), $206,701–$394,600 (Married Joint)
• 32%: $197,301–$250,525 (Single), $394,601–$501,050 (Married Joint)
• 35%: $250,526–$626,350 (Single), $501,051–$751,600 (Married Joint)
• 37%: Over $626,350 (Single), Over $751,600 (Married Joint)

Don’t forget Self-Employment Tax

If you earn self‑employment income, add self‑employment tax to your estimate. A simple rule of thumb is to multiply your net self‑employment income by 15.3%. Add this amount to your estimated income tax to get your total projected tax bill for the year.

Account for Credits and Withholding

If you expect to receive tax credits—such as the child tax credit—or if you have federal tax withholdings from a pension, Social Security, or part‑time employment, subtract those amounts from your projected tax bill. What remains is the amount you need to cover through quarterly payments.

Divide Into Four Payments

Once you have your draft annual estimate, divide it by four. These are your quarterly payments, due in April, June, September, and January. If your income is uneven throughout the year, you can adjust each quarter based on what you actually earned, but the simple four‑payment method works well for most people.

Example

Fred and Janet’s anticipated 2026 income and estimated taxes are as follows:

• $76,500 Pensions (John’s pension is $48,000, and Janet’s is $28,500)
  • Federal tax withheld $13,770
• Part-time work $37,000
  • Tax withheld $5,550
• $43,500 *Social Security Income for both Fred and Janet (85% of the total taxable), their total Social Security income ws $50,025, I entered 85% of that amount.
  • Tax withheld $4,350
• $0 Self‑employment income (Net)
• $0 Consulting fees
• $30,450 Taxable Investment income (Sum of the list below)
  • Interest $16,500
  • **Dividends $5,450 (Qualified dividends – taxed at capital gains rate)
  • ***Capital Gains $18,500 (End-of-year mutual fund capital gain distributions)
• $0 Rental income (Net after expenses)
• $0 Withdrawals from retirement accounts that you elected not to withhold taxes from
• $28,950 RMDs
  • Tax withheld $5,790 (20%)
• $226,400 Total Income
• Total tax withheld $29,410
• Total tax due $42,878 – $29,410 = $13,464 or $2,879/Quarter

To determine the estimated taxes, subtract the standard $31,500 from $226,400 to determine their tax rate. John and Mary have a taxable income of $194,900. Their taxable rate is 22%, or in this case, $42,878.  Their tax deductions equal $29,410. They will owe $13,468 for the year.

However, their $18,500 in capital gains are taxed at 15%, not the 22% we used to calculate the total taxes due for the year.  You can reduce the total taxes due by multiplying $18,500 by .22 which equals $4,070, and then calculating a 15% tax of only $2,775.

Deduct the difference of $1,295 from the annual estimated taxes to lower your quarterly payments.  This can reduce your quarterly payments when you have significant capital gains in any year.

There are many variables to consider, such as tax-exempt income from municipal bonds. Even though it isn’t subject to federal tax, that interest is added back into your AGI to determine your Medicare premiums, so you can’t win for losing in many cases.

Divide this by 4, and each quarterly payment will be $2,879.75. To reduce their quarterly liability or eliminate it altogether, they could increase their federal withholdings. Another option is to increase the Federal withholdings from your RMD. I do this often since our income varies significantly year to year.

Quick Checklist

• Estimate your annual income
  Add up all income that doesn’t have federal withholding (self‑employment, consulting, investments, rentals, etc.).
• Subtract your deductions
  Use the standard deduction unless you know you’ll itemize.
• Apply a blended tax rate
  Multiply your taxable income by 15%–22% to estimate federal income tax.
• Add self‑employment tax (if applicable)
  Multiply net self‑employment income by 15.3%.
• Subtract credits and withholding
  Reduce your estimate by any expected tax credits or withholding from pensions, Social Security, or part‑time work.
• Divide by four
  This gives you your quarterly payment amounts.
• Prefer a shortcut?
  Set aside 25%–30% of every untaxed dollar you earn and pay in one‑quarter of that amount each quarter.
• Mark your due dates
  Payments are generally due in April, June, September, and January.

Staying Ahead of Surprises

Going through the process outlined above can be revealing and key you in to areas where you can better allocate withholdings down the road to avoid this annual exercise.  Most years, I change withholdings for one account or another to better manage the tax burden.

You can use the same process for your state taxes, list your withholdings, and perform the calculation using your state’s income tax rate. Pennsylvania doesn’t tax retirement income, only earned income from employment, and capital gains, dividends, and interest held in a taxable account.

Quarterly taxes don’t have to be stressful. By estimating your income, applying a reasonable tax rate, and dividing the result into four manageable payments, you can stay compliant and avoid penalties. A simple system—applied consistently—keeps your tax obligations predictable and under control.

This process is my way of making sense out of a confusing subject, and it doesn’t address some of the fine points. My goal is to develop ways to simplify subjects, work through them in my personal life, and then relay them to my newsletter subscribers and blog followers so they, too, can see if this works for them.  Please let me know if I’m achieving this goal.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• 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 Employees’ Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 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: Capital Gains, CSRS, Daily Brief, Dividends, Estimated Quarterly Taxes, FERS, Medicare, Pensions, Social Security, Tax Rates
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, General Information, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 10th April 2026 by Dennis Damp

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I wanted to share an important update. I’ve recently sold my Federal Employee’s Retirement Planning services (website and blog)—a milestone that comes with a mix of gratitude, pride, and excitement for what’s ahead.

While ownership has changed, my commitment to you has not. I’ll continue to write and share insights as a consultant. This move opens the door for me to focus more intentionally on producing the thoughtful, practical articles you’ve come to expect, without the distractions of managing the business.

My business was founded in 1985, and now, after 41 years, it’s time to hand over the operations and day-to-day management of our web properties to Government Retirement Solutions, LLC. This company, which has the resources and expertise to navigate this constantly changing environment, will be able to manage and grow these services.

Website Updates Coming Soon

As part of this transition, the website and blog will be undergoing several updates in the coming weeks. These changes are connected to the site’s new ownership and are designed to improve your experience, strengthen the resources available to you, and ensure the platform continues to grow in a positive direction.

The core purpose of the site will remain the same. You will still find the practical guidance, clear explanations, and federal benefits insights you’ve come to rely on. What will change is the behind-the-scenes structure: updated navigation, refreshed content organization, and a more streamlined way to access the information you need. These improvements are intended to make the site easier to use, faster to navigate, and better aligned with the needs of federal employees and retirees.

During this transition, you may notice adjustments to page layouts, article formatting, or how certain tools and resources are presented. Some sections may be temporarily moved or reorganized as the new team works to modernize the platform. My goal is to keep any disruption to a minimum and ensure you always know what’s happening before changes go live.

Continuing Involvement

Although ownership has changed, my role as a consultant and content creator continues. I will still be writing, analyzing policy updates, and sharing insights to help you make informed decisions about your federal benefits and retirement planning. The new ownership simply provides a stronger foundation for the site’s long-term growth and stability.

With some of the planned innovations, additional media will provide more information, and new contributors will delve more deeply into our subject matter. I intend to expand our reach through social media to bring our depth of knowledge and passion for the information to younger generations of federal employees and their families.

Your trust and readership mean a great deal, and I want this transition to feel smooth, transparent, and beneficial. I’ll continue to keep you updated as new features roll out and as the site evolves. If you ever have questions about the changes or feedback on what would make the site more useful to you, I welcome your thoughts.

Thank you for being part of this community and for your continued support during this next chapter. I’m looking forward to bringing you an even better experience as these updates take shape.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• 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 Employees’ Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 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, Dennis Damp, Federal Retirement Planning, Ownership Change
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, General Information, RETIREMENT CONCERNS, UNCATEGORIZED

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Posted on Friday, 3rd April 2026 by Dennis Damp

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For decades, CSRS retirees faced some of the harshest offsets in the Social Security system. The Government Pension Offset (GPO) reduced or eliminated spousal and survivor benefits, while the Windfall Elimination Provision (WEP) cut into any Social Security benefits earned through non‑federal work.

With both provisions repealed last year, CSRS retirees now have access to Social Security benefits that were previously out of reach. This change represents one of the most significant improvements to federal retirement income rules in modern history.

A Retiree’s Story

Mike’s wife recently golfed with a civil service retiree who told her about the spousal Social Security benefits she was receiving.  With only 27 of 40 quarters necessary to qualify for Social Security benefits, Mike didn’t think he qualified.

After GPO and WEP were repealed, CSRS retirees were now eligible for a spousal benefit, and Mike applied for Social Security benefits on Jan. 15, 2026.  After about 6 weeks, he received a notice that he didn’t qualify for his benefits, which he knew and understood, but they were still working on spousal benefits.

Two weeks later, he was approved for spousal benefits equal to one-half of his wife’s full Social Security amount!  Mike said, “I still haven’t received the paperwork with details of amounts, taxes, etc., but I did receive a deposit to our checking account of over $7,000.  The benefit starting date goes back six months from your date of filing.”

The 2026 Federal Acquisition and Technology Overhaul

What the Repeal Means for CSRS Retirees

The elimination of the GPO and WEP restores Social Security benefits to CSRS retirees on the same basis as workers who spent their careers in Social Security–covered employment. This means:

• No reduction in Social Security spousal benefits
• No reduction in Social Security survivor benefits
• No reduction in a retiree’s own Social Security benefit from non‑federal work

For many CSRS households, this translates into thousands of dollars per year in additional income.

Spousal Benefits Under the New Rules

A CSRS retiree may now receive a full spousal Social Security benefit, which can be as much as 50% of their spouse’s full retirement age benefit. The retiree must be at least age 62, and the spouse must already be receiving Social Security retirement or disability benefits.

Before the repeal, most CSRS retirees received nothing because the GPO offset wiped out the benefit. Now, the spousal benefit is paid in full, regardless of the size of the CSRS annuity.

Example

If a retiree’s spouse receives a $3,000 monthly Social Security benefit, the CSRS retiree may now receive up to $1,500 per month as a spousal benefit. Under the old rules, this would have been reduced to zero for most retirees.

Survivor Benefits Are Fully Restored

Survivor benefits are often the most financially significant Social Security payment for married couples. With the GPO gone, a surviving CSRS spouse may now receive 100% of the deceased spouse’s Social Security benefit, provided they meet standard eligibility rules.

This is a major shift. Previously, the GPO eliminated nearly all survivor benefits for CSRS retirees, leaving many widows and widowers with only their CSRS annuity.

Apply for A Higher Spousal Benefit

Many CSRS retirees still receive a small Social Security benefit because they worked at least 40 quarters in the private sector or, after retirement, worked part-time to obtain the minimum 40 quarters.  The benefit is often small in comparison to a working spouse’s benefit.

If you are receiving a low monthly benefit, you can apply for a larger amount based on your spouse’s record, provided certain eligibility requirements are met. Social Security will pay your own retirement benefit first. If half of your spouse’s “full retirement age” (FRA) benefit is higher than your own, they add a “spousal boost” to your payment to bring the total up to that higher amount.

You generally can’t receive this larger spousal amount until the higher-earning spouse has actually filed for their own benefits.

Eligibility Requirements

• Age: You must be at least 62 years old.
• Marriage Duration: You must generally have been married for at least one year (or 10 years if divorced and currently unmarried).
• Spouse’s Status: Your spouse must already be receiving their own Social Security retirement or disability benefits

WEP no More – Your Own Social Security Benefit Is No Longer Reduced

The repeal of the Windfall Elimination Provision (WEP) means that any Social Security benefit a CSRS retiree earned through non‑federal employment is now paid in full, without the WEP reduction formula. This is especially important for retirees who worked part‑time jobs, second careers, or private‑sector employment before or after federal service.

Previously, if you didn’t have 30 years of substantial earning years while paying into the Social Security system, your benefits could be reduced by as much as 40 percent. This would have happened to me when I retired, had I not started my business and paid into the system for many years.

Schedule P/C: A Big Shift in Federal Job Classifications

Planning Opportunities in a Post‑Offset World

With both offsets gone, CSRS retirees should revisit their retirement income strategy. Key considerations include:

• Coordinating spousal and survivor benefits with CSRS survivor elections
• Evaluating whether delaying the Social Security‑eligible spouse’s benefit to age 70 increases household income
• Reviewing tax implications of higher combined Social Security and CSRS income
• Updating long‑term financial projections to reflect significantly higher lifetime benefits

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• 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 Employees’ Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 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: CSRS, Daily Brief, GPO, Social Security Spousal Benefits, Survivor Benefits, WEP
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, General Information, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 27th March 2026 by Dennis Damp

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Federal employees with prior military service have long benefited from the ability to “buy back” their active‑duty time and apply it toward their civilian retirement. This process—formally known as a military service deposit—remains one of the most valuable tools for maximizing retirement income under both CSRS and FERS. Recent updates and ongoing changes in 2025 have made it even more important for employees to understand the rules, timelines, and financial implications of military service credit.

Under current federal retirement policy, military service is generally creditable if it was active duty performed under honorable conditions and occurred before separation from civilian service for retirement. To receive credit, employees must make a deposit covering their military basic pay, calculated as a percentage of earnings plus applicable interest.

The Office of Personnel Management (OPM) continues to emphasize that federal employees who are veterans can receive retirement credit for their military service once they complete this deposit through their agency’s HR or personnel office. The rules vary depending on when the employee entered federal service, making it essential to understand the specific requirements tied to one’s employment date.

Recent Changes and Their Impact

In 2025, updates to military buyback rules have begun to reshape retirement planning for many federal employees. Analysts note that these changes affect how deposits are calculated, how interest accrues, and how long employees have to complete the buyback process. As a result, federal workers are encouraged to take action early to avoid higher costs and ensure their service time is fully credited before retirement.

These adjustments come at a time when interest rates and retirement strategies are evolving. For some employees, the cost of buying back military time may be higher than in previous years, while for others, the long-term increase in pension value still makes the buyback a compelling investment. Financial planners stress the importance of evaluating the break-even point—how long it takes for the increased pension to outweigh the upfront deposit.

Why Military Buyback Still Matters

Military service credit can significantly boost a federal employee’s retirement by:

• Increasing total years of service
• Raising the pension multiplier
• Allowing earlier retirement eligibility
• Enhancing long-term financial security

Military buyback remains a “critical financial opportunity” for federal employees with prior service. I served four years with the US Air Force and purchased back my service time early in my career. I made biweekly payments toward the amount due, and it added 4 years to my annuity calculation when I retired at age 55.

Understanding eligibility, deposit calculations, and strategic timing is essential for maximizing retirement outcomes.

What Employees Should Do Now

Given the ongoing updates, federal employees should:

• Request an estimate of their military earnings
• Calculate potential deposit costs and interest
• Consult their HR office early
• Evaluate long-term pension gains versus upfront costs
• Seek professional financial guidance when needed

As rules continue to evolve, staying informed and acting proactively can make a substantial difference in retirement readiness. Military service credit remains one of the most powerful tools available to federal employees—and understanding the latest updates ensures they can take full advantage of it.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• 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 Employees’ Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 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 Computation, Apply Early for Military Credit, Daily Brief, Estimates of Military Earning, Federal Employees, Honorable Discharge, Military Buyback, Military Credit
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, OPM UPDATES, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 20th March 2026 by Dennis Damp

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This week brought a series of notable developments across the federal government, touching on technology policy, workforce stability, labor relations, and ongoing operational challenges at the Department of Homeland Security. Together, these updates reflect a government navigating rapid change while managing both internal pressures and external demands.

One of the most closely watched actions is the administration’s move toward restricting the use of certain commercial artificial intelligence tools across federal agencies. The White House is preparing an executive order that would direct agencies to discontinue the use of Anthropic’s AI systems following disagreements over military‑related guardrails.

Several departments, including the Pentagon and Treasury, have already begun phasing out the technology. This shift signals a broader reevaluation of how federal agencies adopt and govern emerging AI tools, with an emphasis on security, oversight, and alignment with national priorities. For employees who rely on AI‑enabled workflows, the coming months may bring new guidance, alternative tools, and updated compliance requirements.

Homeland Security – Still Unfunded

The ongoing shutdown at the Department of Homeland Security continues to generate concern among employees and lawmakers. Unions and advocacy groups are pressing for a resolution as the shutdown strains operations at TSA, CBP, FEMA, and other frontline components. While essential personnel remain on duty, the prolonged uncertainty is affecting morale, staffing, and service delivery.

The President reiterated his call for Congress to end the shutdown, but negotiations remain stalled. For DHS employees, the situation underscores the operational and personal challenges that arise when political gridlock intersects with mission‑critical work.

This action is grossly unfair to all of the DHS workforce that must continue to work without pay. According to TSA officials and union representatives, TSA employees have worked without pay for nearly half of all workdays in fiscal year 2026 due to multiple Department of Homeland Security (DHS) shutdowns. This also applies to the Secret Service, Coast Guard, CPA, and FEMA.

This is the third shutdown in just six months that has forced federal workers in unfunded Departments to work without their pay! Legislation should be passed to suspend salaries for Congress, including its staff, whenever a federal agency remains unfunded, period!

Flashback

I can imagine how my wife and I would have fared had I been subjected to this lunacy in my early career, when we were living paycheck to paycheck. I received a RIF notice shortly after accepting a job with the DOD, a year after my discharge from active duty. I immediately started looking for another job, knowing that I wouldn’t be able to pay the rent and car loan, or put food on the table for my young family. Fortunately, I was spared, as most of those impacted accepted early outs with a $25,000 Voluntary Separation Incentive Payment (VSIP). Can you imagine what you and yours would have to do if this happened to you?

Workforce Instability

Workforce capacity remains another major theme. Recent analysis shows that the federal workforce has contracted significantly, down roughly 12 percent since late 2024. Agencies are grappling with hiring delays, retirements, and shifting budget priorities, all of which affect readiness.

With global tensions and domestic demands increasing, questions about staffing levels and long‑term workforce planning are at the forefront. Employees may see greater emphasis on recruitment initiatives, cross-agency talent sharing, and the modernization of HR processes as agencies work to stabilize their staffing pipelines.

Labor Relations – Union Participation

Labor relations also saw movement this week. The Federal Labor Relations Authority withdrew a previous proposal that would have limited when employees could cancel union dues. The existing rule—allowing cancellation at any time after the first year—remains in place. This decision preserves flexibility for employees and avoids a more restrictive framework that unions had strongly opposed. It also reflects the broader debate over the role of organized labor within the federal workforce.

Fraud and Waste Proposals

The administration announced several additional initiatives, including the creation of a Task Force to Eliminate Fraud, aimed at strengthening oversight and reducing waste across federal programs. Agencies such as HUD and OPM also made internal moves, with HUD facing scrutiny over its headquarters relocation process and OPM launching a new HR shared service center to support agency operations.

Conclusion

AI in the federal sector is undergoing a massive shift, moving from experimental pilots to mission-critical infrastructure. As of 2026, federal agencies have more than doubled their use of AI, with a heavy emphasis on generative AI, which saw a ninefold increase in adoption between 2024 and 2025 alone.

Taken together, these developments highlight a federal landscape marked by rapid policy shifts, operational pressures, and evolving workforce needs. As agencies adapt, federal employees can expect continued attention on technology governance, staffing challenges, and labor‑management dynamics.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• 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 Employees’ Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 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.

Posted in UNCATEGORIZED

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Posted on Friday, 13th March 2026 by Dennis Damp

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When a loved one passes away, the emotional toll is often accompanied by financial uncertainty. For spouses of federal employees or retirees, survivor’s benefits can provide essential stability during a difficult transition.

These benefits—administered through federal retirement systems and Social Security—are designed to ensure that a surviving spouse continues to receive income after the worker’s death. Understanding how these programs work, who qualifies, and what steps to take can make a significant difference in long-term financial security.

Thrift Savings Plan (TSP) 2026 Overview and Considerations

Two Main Sources of Federal Survivor Benefits

Most surviving spouses receive benefits from one or both of the following systems:

• Federal retirement programs (CSRS or FERS)
• Social Security survivor benefits

Each program has its own rules, eligibility requirements, and payment structures.

Survivor Benefits Under CSRS and FERS

Federal employees are covered by one of two retirement systems:

• Civil Service Retirement System (CSRS) – for employees hired before 1984
• Federal Employees Retirement System (FERS) – for employees hired after 1983

Both systems offer survivor annuities, but the details differ.

CSRS Survivor Benefits

Under CSRS, a surviving spouse may receive up to 55% of the employee’s earned annuity. To qualify:

• The couple must have been married for at least nine months, unless the death was accidental or a child was born of the marriage.
• The employee must have elected a survivor benefit at retirement.
  If they did not, the spouse may still have options to request a benefit within a specific timeframe.

CSRS survivor annuities are generally higher than FERS annuities. However, a FERS annuitant can realize a higher overall benefit due to higher Social Security monthly benefits and the government’s generous TSP contribution match.

FERS Survivor Benefits

FERS provides two types of survivor benefits:

1. Basic Employee Death Benefit (BEDB)
   This is a one-time payment plus a percentage of the employee’s salary. It is available if the employee dies while still working and had at least 18 months of service.
2. Survivor Annuity
   A surviving spouse may receive 50% of the employee’s earned annuity if the employee had at least 10 years of service.

As with CSRS, the marriage must have lasted at least 9 months unless an exception applies.

Social Security Survivor Benefits

Most federal employees also pay into Social Security, especially those under FERS. Social Security provides additional financial support to surviving spouses.

Who Qualifies?

A surviving spouse may qualify if:

• They were married to the deceased worker for at least nine months (with exceptions).
• The worker earned enough Social Security credits.
• The spouse is:
  • 60 or older, or
  • 50 or older with a disability, or
  • Caring for a child under 16 or a disabled child receiving benefits.

How Much Can a Spouse Receive?

The benefit amount depends on the worker’s earnings record and the spouse’s age. Generally:

• Up to 100% of the deceased worker’s benefit if the spouse has reached full retirement age.
• Reduced benefits if claimed earlier.

How to Apply for Survivor Benefits

Surviving spouses should take the following steps:

1. Notify the employing agency or OPM
   This triggers the process for federal survivor annuities.
2. Contact Social Security
   Survivor benefits are not automatic; the spouse must apply.
3. Gather documentation
   Use this Survivor’s Checklist to walk you through the process.
   This typically includes:

• Marriage certificate
• Death certificate
• Birth certificates for dependent children
• The employee’s federal service records
• Review benefit elections
  Survivor annuity elections made at retirement determine what the spouse is entitled to.

Final Thoughts

Federal survivor benefits can be a lifeline for spouses navigating life after loss. Understanding how CSRS, FERS, and Social Security work together helps ensure that surviving spouses receive the support they’re entitled to. Fortunately, the Government Pension Offset (GPO) rule was repealed in 2024, which reduced benefits for certain CSRS spouses.

It’s important to note that it can take up to 3 months or longer for OPM to process the claim and send the first survivor annuity check. While official goals are around 60 days for full processing, current backlogs and high volumes mean many survivors wait 3–6 months for final adjudication, with interim payments sometimes needed to cover the delay. Life insurance and an emergency fund equivalent to 6 months to 1 year of living expenses will help if delays are incurred.

Taking time to learn the system, gather documents, and apply promptly can make the process smoother and provide much-needed financial stability during a challenging time. Visit our comprehensive Survivor’s Guide for additional information, and use this Master Retiree Contact List to locate Important numbers for federal benefits and service providers.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• 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 Employees’ Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 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: CSRS, Daily Brief, Federal Employee Spousal Benefits, FERS, GPO, Master Retiree Contact List, Social Security, Survivor's Annuity, Survivor's Benefits
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, General Information, LIFESTYLE / TRAVEL, OPM UPDATES, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 6th March 2026 by Dennis Damp

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The start of March 2026 has brought significant turbulence for federal employees, characterized by a shrinking workforce, increased health care costs, and ongoing battles over union representation and civil service protections. Following the implementation of the 2026 benefits, employees are navigating the realities of a 1% pay raise alongside double-digit increases in health premiums, while the administration pushes for further organizational change.

Inflation at Work

2026 Pay and Benefits Reality

The 2026 General Schedule (GS) pay raise, finalized by the administration at 1% across-the-board, took effect in January. This raise represents the smallest increase since 2021 and applies to most federal employees, with no additional locality pay adjustments.

Concurrently, FEHB (Federal Employees Health Benefits) premiums for 2026 increased by an average of 12.3% for the employee/retiree share. This marks the second consecutive year of double-digit hikes. Notably, the new 2026 rates also include higher out-of-pocket maximums ($10,000 for self-only) and a $ 17.90-per-month increase in the standard Medicare Part B premium, rising to $202.90.

Workforce Reductions and Agency Developments

A major theme this week is the continued focus on decreasing the federal headcount. Data released by the Office of Personnel Management (OPM) indicates that the civilian workforce shrank by 12% between September 2024 and January 2026.

The Office of Personnel Management (OPM) continues to reshape federal workforce accountability, and agencies are prioritizing employee performance over time-in-service when initiating RIFs. The administration is focusing on performance standards and limiting the number of outstanding ratings awarded throughout the government. There is a sustained shift toward a more realistic evaluation process as OPM heads into the next fiscal year.

Reports from early March 2026 indicate that the administration is moving forward with plans to dismiss thousands more federal employees, particularly those involved in diplomatic and national security operations. The administration is also advancing plans to reclassify thousands of career civil servants into a new “schedule policy career” designation, which would remove their appeal rights for adverse actions.

Senate Fails Again to Advance DHS Funding

In Congress, efforts to break the impasse over funding the Department of Homeland Security (DHS) stalled once more. This marks the third week of unsuccessful attempts to move the bill forward.

Lawmakers returned from recess without a breakthrough on immigration‑related reforms tied to DHS appropriations, leaving the department and its sub-agencies—including TSA, FEMA, and the Coast Guard—without full funding. The stalemate underscores the broader political divide over border and immigration policy, which remains the central obstacle to reopening the shuttered parts of the government.

Performance vs. Tenure in RIFs

OPM is pushing for new regulations that would change how agencies conduct Reductions-in-Force (RIFs). The proposal seeks to prioritize performance over seniority (tenure) when determining which employees are retained or removed, a move expected to be finalized soon.

Union Battles and Litigation

Unions, including the American Federation of Government Employees (AFGE), are actively fighting to restore collective bargaining rights and combat the administration’s “union-busting” orders. A significant legal development this week saw a federal judge allow a lawsuit to proceed against the Department of Government Efficiency (DOGE), alleging that its data access violated the Privacy Act.

Tax Updates

The tax changes from the Tax Cuts and Jobs Act (TCJA) were made permanent this year, preventing tax hikes for roughly 62% of filers. Other changes include:

• Up to $25,000 in tips and $12,500 in overtime can be deducted, with income limits ($150k single/$300k married).
• The standard deduction for 2026 rises to $32,200 for married couples filing jointly and $16,100 for single taxpayers.
• The Child Tax Credit expanded to $2,200 per child for qualifying taxpayers.
• An additional $6,000 deduction is available for taxpayers 65 and older.
• Deductions for interest on loans for American-made vehicles, up to $2,200 for eligible couples.
• Business tax cuts permanently restore 100% bonus depreciation and the 20% pass-through deduction.

The IRS also announced that the mileage reimbursement rate for federal employees using personal vehicles for official purposes increased to 72.5 cents per mile.

Conclusion

Things are happening at lightning speed these days, especially when you add in the Iran conflict that took center stage all week. There isn’t a day that goes by that something new doesn’t grab our attention, all the while not giving us a chance to digest what happened the days before. The frenetic pace of it all has numbed many to the onslaught of news these days.

I’m starting biweekly Federal Employee News updates to capture much of what is going on by providing a brief summary that can be explored in more detail if desired. The shift from one major news release to another can happen overnight. Soon after, the previous hot topic is sidelined, only to circle back to bite us one way or another.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• 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 Employees’ Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 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 Pay Raises, 2026 Tax Breaks, Civil Service Unions, Daily Brief, DHS Funding, FEHB, Performance based RIF selections, RIFs, Workforce Reductions
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, General Information, OPM UPDATES, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Thursday, 26th February 2026 by Dennis Damp

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Fixed‑income opportunities continue to evolve as investors evaluate shifting interest‑rate expectations, inflation pressures, and a challenging global economic growth environment. After two years of central bank tightening, bond markets have entered a more balanced phase—one defined less by rate shocks and more by subtle positioning, yield‑curve dynamics, and various opportunities across credit sectors.

The annual inflation rate in the United States as of January 2026 is 2.4%. This marks a decrease from the same time last year, when the rate was 3.0% in January 2025.

Over the past 12 months, the U.S. stock market has experienced significant, broad-based growth, with the S&P 500 rising roughly 15-16% and the Dow Jones Industrial Average (DJIA) experiencing similar, sustained gains.

The market reached record highs over a dozen times during this period, driven by tax cuts, AI and tech investments, and recently, a broadening out beyond the tech sector amid some volatility.

While the stock market offers the potential for higher gains, it also carries risks for those approaching retirement and retirees. Fixed income offers the stability your portfolio requires to preserve your retirement nest egg and to smooth out the volatility markets experience.

Treasury Bill Rates Still Attractive

As of February 17, 2026, the FDIC national average savings account yield is 0.39% APY. While this is the benchmark for traditional, often large, brick-and-mortar banks, high-yield savings accounts (HYSAs) currently offer up to 5.00% APY, which is over 10 times the average. It pays to look around for higher yields, including short-term Treasury Bills.

The average savings account rate would yield just $39 per $10,000 for the entire year, while a 5% yield would yield $500. Quite a difference.

Treasury Bills, Notes, and bonds remain attractive. You can select auto reinvestments for up to 2 years for Treasury Bills; reinvestments can be canceled at any time if the funds are needed. The rates change for each new issue.

Over the past year (as of February 2026), short-term Treasury bill yields for 4, 8, 13, and 17-week maturities have generally decreased from over 5% to the 3.5%–4.5% range. The 4-week rate dropped to approximately 3.63% (from over 4.2% last year), and the 10-year Notes recently yielded between 4.03% and 4.05%.

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, a tax savings for all.

Treasury Bill Investment Rates

Treasury Note Investment Rates

 

It is generally recommended to purchase Notes and Bonds through your broker, and I personally limit my purchases to new-issue bonds.

Treasury Notes and Bonds must be sold on the secondary market. If you purchased them from Treasury Direct and decide to sell them before maturity, they must be transferred to your brokerage account. This can take several weeks to a month or longer in some cases.

As of late February 2026, the 20-year U.S. Treasury bond yield is approximately 4.6% to 4.65%. Some buy long-term bonds on the assumption that interest rates will fall later this year or early next year, while locking in a decent yield. Rates could go either way depending on various factors; you never know what changes will influence the market.

There is a significant risk to long-term bonds; they are highly rate-sensitive, and bond prices move inversely to interest rates. If yields decline, the value of existing bonds increases. If yields rise, existing bonds lose value.

The price of a 20-year Treasury bond will change by approximately 15% to 18% in the opposite direction of a 1% change in interest rates. This high sensitivity, known as “duration,” means if rates rise by 1%, the bond price falls by roughly 15-18%, and vice versa.

This is significant, especially if you will need to tap these funds. However, if you keep the bond to maturity, there is no risk; you will collect the specified yield through the bond’s term, and your entire initial investment will be returned to you when the bond matures. Interest is paid semiannually.

As a 20-year bond approaches its maturity, its remaining term shortens, decreasing its duration. This makes it less sensitive to interest rate moves. For example, a 20-year bond held for 10 years would have an 8 to 10-year duration. Consequently, a 1% change in interest rates would result in an 8% to 10% change in the bond’s value.

Treasury Bond 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, eliminating the middleman, and there are no purchase fees.

U.S. Treasury Note yields are currently hovering around 4% for the 10-year benchmark, reflecting recent market fluctuations driven by economic data. Key maturities generally show yields in the 3.4%–4.7% range, with 2-year notes around 3.46% and 30-year bonds near 4.69%.

The shorter the duration of the Note you purchase, the less sensitive it is to interest rate changes. For example, if you purchased a 5-year Treasury Note, a 2% rise in interest rates will cause the Note’s price to fall, while a 2% fall in interest rates will cause the Note’s price to rise.

The price change depends on the Note’s duration, which is approximately 4.5 years for a 5-year Note. Generally, a 1% change in interest rates results in a price change of roughly 1% per year, or 4.5% in this example.

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 Bonds 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.

CDs and Savings Bonds

Many banks and credit unions are offering competitive rates for savings accounts and CDs, from 3.5 percent to higher in many cases. CDs have no market risk if you stay under their insured FDIC limits.

I recently negotiated a competitive savings account rate at my local bank, increasing my interest by over 1.5% above what they generally offer.

Online banks are offering competitive CD rates, with many 1-year terms currently yielding around 4.00% to 4.10% APY, significantly higher than the national averages.

I-Savings Bond Rates

I Bonds issued from November 1, 2025, to April 30, 2026, are earning 4.03%. This includes a .90% 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 that 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 fixed rate over 3% and are currently earning over 6%. Here is a table showing what I Bonds are earning today, based on the purchase date.

Many I-bonds were sold with a zero fixed rate, which can dramatically reduce returns as the inflation rate decreases. For example, I Bonds issued between May and October of 2022 were paying 9.66%. However, they had a 0% fixed rate; those same bonds are now paying 3.13%.

The I Savings Bonds issued without a fixed rate, that are over a year old, can be redeemed and reinvested in new I Bonds with a fixed rate to increase your income, or reinvest the funds in higher-yielding short-term Treasuries or CDs. The Treasury will charge a 3-month interest penalty on any I bond cashed in that is under 5 years old.

On the flip side, when the inflation rate goes negative, as it did in the late 1990s, I-bonds don’t decrease in value.

Market Observations

The stock market has been on a winning streak lately, hitting new highs over a dozen times last year. For the most part, we have all seen our TSP, other retirement, and taxable accounts increase in value, sometimes dramatically. The market is like a roller coaster cycling up and down based on political stability, company profits, employment figures, CPI, inflation, and so many other factors, too numerous to mention.

This highlights the need for those planning their retirement and retirees to consider allocating a portion of their portfolios to more stable fixed-income investments, as outlined above. This is especially true if the stock market is keeping you up at night.  We are elated when the market is up and depressed when it goes down, as evidenced by our most recent monthly account statements.

Summary

The rule of 100 is used 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.

Many use the 110 rule today; in that case, at age 65, you would allocate 45% of your investments to stocks and 55% to fixed income.

I still prefer to invest in the safety of Treasuries, AAA-rated corporate bonds, 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 Treasuries are viable options if you can lock up your discretionary savings and investments for a period of time. As noted in the above charts, Treasury Bill rates are moderating slightly.

Short-term T-Bills and Bonds continue to offer impressive yields, given that many banks still lowball 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

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• 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 Employees’ Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 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: CDs, Daily Brief, I Bonds, Market Projections, Retirement Savings, Rule of 100, Savings Bonds, TIPS, Treasury Bills, Treasury Bonds, Treasury Notes
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, General Information, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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