Posted on Friday, 25th September 2020 by Kevin Moss

The 2021 FEHB Open Season runs from November 9^th through December 14^th. For 42 years, Consumers’ Checkbook has published our annual Guide to Health Plans for Federal Employees to help active and retired federal employees find the best FEHB plan for them. By asking you a few questions about yourself and your family, the Guide provides a personalized total cost estimate for each plan which is the premium plus expected out-of-pocket for someone like you. You’ll see which plans will save you the most money or which will provide the most coverage. For retirees, we provide a yearly cost estimate for every FEHB plan with Medicare Part A only and a separate estimate for the FEHB plans with Medicare Parts A and Parts B. By doing so, we’re able to show users which plans coordinate best with Medicare, the cost reduction size of adding Medicare Part B, and whether the FEHB plan offers Medicare Part B premium rebates.

Here are some important tips to consider as the 2021 FEHB Open Season approaches:

• Don’t assume your plan is unchanged. The premium almost certainly will change. Certain benefits may be added or taken away. Your doctors may have left the plan. An expensive drug may no longer be on formulary. Even if you don’t anticipate switching plans, it makes sense to see how your plan has changed every Open Season.
• Check to see if there are newer plan choices that might be better buys. There are High Deductible plans (HDHP) with health reimbursement arrangements that can provide big savings and that have terrific catastrophic coverage. Remember, higher premium plans do not mean better benefits. They may simply reflect the expensive enrollees they attract. For retirees, there are new Medicare Advantage plans offered by some FEHB plans that reimburse almost the entire Medicare Part B premium and waive all doctor and hospital expenses.
• Read the plan brochure. We know. They are long and not fun to go through, but they offer the clearest view of what life is like in a plan. Retirees should go to Section 9 to see if there are any Medicare coordination changes in your current plan.
• Review important benefits. If there is a benefit that is important to you, check that benefit in the Checkbook Guide to see which plans give you the best deal. Make sure to check the plan brochure for that benefit to see additional information.
• Consider your dental and vision needs. The standalone FEDVIP plans are good buys for many, but not all. Remember that some FEHB plans offer modest dental and vision benefits that don’t require you to pay a separate premium. Also, some FEHB plans offer dental and vision discount programs as part of their “Non-FEHB” benefits. The Checkbook Guide will show you how all your available choices stack up under low, average, or high dental expense years. Hint: If you have low dental expenses you might be better off in a FEHB plan that offers some dental benefits vs paying a FEDVIP premium.

The Guide is available in print and online formats. Federal Retirement readers can pre-order the Guide at Guidetohealthplans.org and save 20% by entering promo code FEDRETIRE at checkout. The Guide will be released online no later than the first day of Open Season November 9^th. Print books will be mailed the week prior to the start of Open Season.

The Center for the Study of Services (CSS), the publisher of Consumers’ Checkbook and the Guide to Health Plans for Federal Employees, is a nonprofit 501(c)(3) organization that was founded in Washington D.C. in 1974. The organization has decades of experience in healthcare surveys, research, analysis, and reporting and works with research organizations, federal agencies, health plans, healthcare providers, and state insurance exchanges to measure, report, and improve the experiences of healthcare consumers and patients.

Consumers’ Checkbook was first published by CSS in the Washington D.C. area in 1976. The methodology used then remains the same today—to determine a service provider or healthcare professional’s rating, local consumers are surveyed, and research staff conduct undercover price shopping. Checkbook is the only publication that supplies unbiased, detailed ratings of local businesses along with verified price information and advice. The website and publications never carry advertising and there are no referral fees from the businesses rated. Consumers’ Checkbook now serves seven metropolitan areas, Boston, Chicago, Philadelphia, San Francisco, Seattle, Twin Cities, and Washington D.C.

Helpful Retirement Planning Tools

• Retirement Planning For Federal Employees & Annuitant
• Budget Work Sheet
• A Marriage of Convenience – Medicare & FEHB
• Medicare and FEHB Options – What Will You Do When You Turn 65? 
• What to Consider Before Enrolling in Medicare B
• Should You Change to a Lower Cost FEHB Plan When You Sign Up For Medicare
• Caution – Don’t Lose Your FEHB Coverage
• Social Security Guide

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, 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 advice and strategies contained herein may not be suitable for your situation and 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 BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 18th September 2020 by Dennis Damp

I receive many questions this time of year about the retirement process and required forms. It can take several months for HR to process your papers and send them to the Office of Personnel Management (OPM) for final determination of your claim.

Many federal and postal workers elect to retire at end of year because employees can sell back their use or lose annual leave plus current year accumulation.  This can amount to a lump sum check of up to 20 percent of their annual gross wages. I sold back 440 hours of annul leave when I retired many years ago. The lump sum is generally paid out 6 to 8 weeks after retiring and therefor taxes are deferred to the following year. Plus, your income is generally less after retirement and you pay less taxes on the lump sum payout.

I submitted my retirement application forms three months before retirement. OPM suggests submitting them at least 2 months before your target retirement date. The more time HR has to process your application the better.

Last year I wrote an article titled, The Ultimate Retirement Planning Guide that outlines the steps federal and postal employees must take to effect their retirement. I updated the article this week. The process can be confusing and there is much to consider; from selecting the best date to retire to the many benefit elections available. Each of the required forms come with instructions, however they can be and are often confusing. Our guide links you to clarifications and detailed explanations for each election along with other recommendations that will help you make informed decisions.

The following basic package of retirement forms are required for both the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS).  After meeting with your HR retirement counselor and reviewing your Official Personnel File (OPF), other forms may be necessary for areas such as military credits.

FERS Forms

• SF-3107 (Application for Immediate Retirement)
• SF-3107-2 (Spouse’s Consent to Survivor Election) This form is only required if you do not elect the full survivor benefit for your current spouse. Included with the SF-3107 form.
• SF-2818 (Continuation of Life Insurance Coverage)
• SF-2817 (Life Insurance Election) Use this form is you do not wish to continue all of your optional life insurance into retirement. The SF-2818 cannot be used to cancel life insurance.
• TSP – Forms needed for your election of TSP disbursements.

CSRS Forms

• SF-2801 (Application for Immediate Retirement)
• SF-2801-2 (Spouse’s Consent to Survivor Election) This form is only required if you do not elect the full survivor benefit for your current spouse. Included with the SF-2801 form.
• SF-2818 (Continuation of Life Insurance Coverage)
• TSP – Forms needed for your election of TSP disbursements.
• RI 38-124 (Voluntary Contributions Election) Only required if you want a refund of your voluntary contributions.

If you are considering retirement at end of year, this is a good time to start your retirement application and talk with HR. You can request detailed retirement benefit estimates for several target retirement dates plus they can help you through the process. Use our Ultimate Retirement Planning Guide for clarifications and to ensure you aren’t missing anything.

Helpful Retirement Planning Tools

• Retirement Planning For Federal Employees & Annuitant
• Budget Work Sheet
• A Marriage of Convenience – Medicare & FEHB
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• What to Consider Before Enrolling in Medicare B (Part 2)
• Should You Change to a Lower Cost FEHB Plan When You Sign Up For Medicare (Part 3)
• Caution – Don’t Lose Your FEHB Coverage
• Social Security Guide

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Saturday, 12th September 2020 by Dennis Damp

We can expect a smaller COLA increase for 2021. The final number will be released on October 13^th.  The August issue of Kiplinger magazine estimated an increase of 1.2% while others suggest a much lower figure of .44%. Both projections are much lower than the 1.6% we received last year.

Projected COLA Going Down

The Social Security Act specifies a formula for determining each COLA. According to the formula, COLAs are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). CPI-Ws are calculated on a monthly basis by the Bureau of Labor Statistics.

According to the Socials Security Administration, a COLA effective for December of the current year is equal to the percentage increase (if any) in the CPI-W from the average for the third quarter of the current year to the average for the third quarter of the last year in which a COLA became effective. The fourth quarter isn’t used to determine the upcoming year’s COLA because that number isn’t available from the Bureau of Labor Statistics until mid to late January. Our COLAs are adjusted on January 1 before the 4^th quarter data is available.

2020 Health Care Open Season (2021 Coverage and Premiums)

The 2020 Federal Employees Health Benefits (FEHB) open season will run from November 9 through December 14, 2020.  Each year Open Season runs from the Monday of the second full workweek in November through the Monday of the second full workweek in December. Health care service providers are required to submit benefit and rate proposals for the contract term beginning January 1, 2021 on or before May 31, 2020. OPM generally completes negotiations in August so we should have updates and new rates in Early October. When they are published, I will send out a message to all subscribers.

During the annual Open Season, eligible employees can enroll, change plans or plan options, change enrollment type, or cancel their enrollment for FEDVIP and the FEHB Program. Employees can also re-enroll or newly enroll in FSAFEDS.

We will have 10 new plan options in FEDVIP for a total of 23 dental plan options and 10 vision plan options in 2021.  More information on the new plans will be released shortly by OPM.

OPM encourages all carriers to thoroughly evaluate options every year with a focus on improving affordability, reducing costs, improving the quality of care, and protecting the health of their enrolled populations. Any proposed benefit enhancements must be offset by proposed reductions so that premiums are not increased due to benefit changes. Premium increases are inevitable for most participants again this year and some anticipate they will increase significantly due to the COVID-19 pandemic. Last year the average rate increase was 4%.

Retirees can connect to FEHB Open Season Online to review brochures, pricing and submit changes starting in early November. You can actually chat with a Customer Service Representative using their “Live Help” feature.

Since many federal employees have been working from home due to the pandemic, OPM and your agency HR office is working on ways to get plan information to you expeditiously.

Request a Federal Retirement Report

Retirement planning specialists provide a comprehensive Federal Retirement Report™ including annuity projections, expenditures verses income, with a complete benefits analysis. This comprehensive 27-page benefits summary will help you plan your retirement.

Request Your Personalized Federal Retirement Report™ Today

Find answers to your questions: The best time to retire, retirement income vs expenditures, FEGLI options and costs, TSP risks and withdrawal strategies, and other relevant topics. Determine what benefits to carry into retirement and their advantages. You will also have the opportunity to set up a personal one-on-one meeting with a CERTIFIED FINANCIAL PLANNER.

Helpful Retirement Planning Tools

• Retirement Planning For Federal Employees & Annuitant
• Budget Work Sheet
• A Marriage of Convenience – Medicare & FEHB
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• What to Consider Before Enrolling in Medicare B (Part 2)
• Should You Change to a Lower Cost FEHB Plan When You Sign Up For Medicare (Part 3)
• Caution – Don’t Lose Your FEHB Coverage
• Social Security Guide

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in BENEFITS / INSURANCE, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 4th September 2020 by Dennis Damp

I know its early, open season doesn’t start until November. However, it is a good time to start thinking about your 2021 health care needs now. Open season is just around the corner.

Request a Federal Retirement Report™ to review projected annuity payments, income verses expenses, FEGLI, and TSP projections.

I recently talked with Kevin Moss from checkbook.org, a company that helps individuals find the best service—and avoid the worst services in many areas, including our Federal Employees Health Benefits (FEHB) plan offerings.  Kevin is signing up to be a guest writer for our blog; he and I will also collaborate on FEHB open season articles for our Federal Employee’s Newsletter and blog. I look forward to working with him to provide our site visitors and subscribers the most current and up-to-date information available for the upcoming open season.

OPM’s plan comparison tool is very helpful, however it still leaves much to be desired. There are comprehensive private sector plan comparison tools available that will help you make informed decisions on which plan is best for you and your family.

Checkbook’s Guide to Health Plans and their online plan comparison tool are specifically designed for federal employees. I’ve run several comparisons using both the OPM and Checkbook tools and am impressed with the results.

The Checkbook comparison tool breaks down all of your costs including the total cost if you are paying Medicare Part B premiums, cost reductions for FEHB plan Part B reimbursements if available, and anticipated average, low or high healthcare expenses.  It also provides the total costs if retirees only subscribe to Medicare Part A! I don’t believe you will find this information easily anywhere else. They also offer 23 dental coverage costs compared to only 7 listed on the OPM tool.

Checkbook publishes an annual guide that gives you vital information and shows you how much money you can save by changing—or by staying in—your health care plan. It summarizes thousands of facts about the plans to simplify your choice. It comes in both print and online versions. The 2021 guide will be available at the beginning of Open Season on November 9th, but you can pre-order the Guide now at Guidetohealthplans.org. You must register to use the site; $11.95 for online access to the guide and comparison tool, $11.95 plus shipping for a print copy of the guide, and $15.95 for both online access and print copy plus shipping. However, Federal Retirement readers can save 20% on the Guide by entering promo code FEDRETIRE at checkout. Active federal employees can check to see if they can access this portal through an agency subscription.

The printed and online guide are very useful. They break down costs by employees under 55 in both the GS and Postal Pay systems, those over 55 to age 64 and costs for annuitants with or without Medicare.  They provide guidance on cost sharing, coverage features, and rate the quality of service providers. All in all, an exceptional service for a reasonable price that not only can save you money but provide piece of mind when deciding which plan is best for you.

Survivor’s Checklist Update: We were able to format our Survivor’s Checklist to a fill-in PDF format. If you downloaded the original PDF version last week, it is now available as a fill-in form. Download the updated Survivor’s Checklist version for your personal use.

Helpful Retirement Planning Tools

• Retirement Planning For Federal Employees & Annuitant
• Budget Work Sheet
• A Marriage of Convenience – Medicare & FEHB
• Medicare and FEHB Options – What Will You Do When You Turn 65? (Part 1)
• What to Consider Before Enrolling in Medicare B (Part 2)
• Should You Change to a Lower Cost FEHB Plan When You Sign Up For Medicare (Part 3)
• Caution – Don’t Lose Your FEHB Coverage
• Social Security Guide

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 28th August 2020 by Dennis Damp

Retirees generally worry about finances and health issues, not whether or not I’ll be safe when I go out and about.  I was talking recently to an 80-year-old veteran who just purchased his first firearm, a revolver. He was using a walker and not in great health.

Yes, a COVID-19 vaccine will save lives and help to restart our economy; hopefully, sooner than later. However, the return to the rule of law is the only cure for civil disobedience and anarchy.

It’s no wonder that gun sales are through the roof and ammunition is in short supply. If we call 911 and no one responds we are left to our own devices. In St. Louis a mob broke down the gate to a community and threatened the occupants. The home owners called 911 without success and took the matter into their own hands. The husband and wife brandished their guns to encourage the rioters to leave. Those who destroyed personal property and threatening harm weren’t arrested, the home owners were charged!

Elderly store owners are being brutally attacked for trying to protect the small businesses that sustained them throughout life. One 70-year-old women was kicked to the ground and attacked with a 2 x 4; another owner was beaten senseless because he used a fire extinguisher to dissuade the mod from looting his store.  An 80-year-old woman, using a walker on a New York City street, was sucker punched by a young punk who had been arrested many times before and simply let go by the authorities because of their catch and release policy. These aren’t isolated instances; this is happening across America!  There are videos of these atrocities and the criminals are getting away with this. The mobs are working their way into the suburbs and calling out residences in the dead of night to leave their homes and turn them over to the mob or they will burn them down! 

Our society is under attack from far-left Marxist. The riots and unrest in places like Seattle, Portland, New York, Chicago, and now to Kenosha are designed to create division and sow seeds of discontent. The federal agents protecting federal property in Portland stood down weeks ago, yet the rioting continues unabated even though you hear little about this on the major news networks. A CNN reporter this week was in Kenosha at night with a backdrop of businesses on fire and reported that the demonstrations were mostly peaceful!  The Portland police and their State Police have not been able to stop the violence.  This week in Portland, the mob tried to seal the doors to a district police office and then set the building on fire with the occupants inside!

There are pockets of this movement throughout the states and many liberal governors and mayors are fueling this unrest with their encouragement, inaction, and inability to deal with criminal behavior on every level. Instead of calling out the National Guard they stand their police forces down and then strip them of their ability to not only defend themselves but the citizens they are sworn to protect! Just recently, the Kenosha County Board requested 1500 national guard with police powers to be called out to quell the riots.

This is a sad testimony to how many Americans are out-of-touch with reality and the rule of law. They have lost their moral compass that has guided this nation since its inception. We embolden mobs when we ignore criminal behavior which encourages others to follow suit.

The Marxists have hijacked the BLM movement. Do Americans care about black lives? YES, we care about ALL lives. Do Americans care about law and order? YES, the vast majority want to live in peace and harmony. Is anyone exempt from complying with our laws? NO.

When you are stopped by the police and resist arrest, tackle officers to the ground, take an officer’s weapon, run to a car and reach inside for a weapon, what do you expect the police to do? Ask them to please stop, call a social worker to reason with this person? You can expect a bad outcome with bad behavior. The police must defend themselves and the community they serve, and they only have a few seconds to react.  

Yes, there are bad actors on both sides of the equation. Kneeling on the neck of an incapacitated person for nine minutes was outrageous and that person was charged. So too is the act of resisting arrest! Live to fight another day, comply and if injustice is evident fight it in court, not in the streets. 

I said this in a previous article and it is worth repeating here: “This country has come a long way; this isn’t the 1850s or the 1960s. Seventeen percent of all marriages in 2017 were mixed race, in 1967 only 3 percent of marriages were interracial. Just look at our TV shows, soap operas, sports teams, movies and more. Diversity and inclusion rules. In the cities we see African American mayors, governors, and in some cases such as Atlanta I believe over half the police force is minority. More minorities were employed before the pandemic than any time in history. The graduation rate for minorities is rising and Obama was our President!”

Anything is possible in America today; regardless of your race, color, creed, or national origin. What determines an individual’s destiny is self-determination, drive, personal motivation, and desire to succeed; no matter what obstacles lay ahead. America gives us all that opportunity.

Helpful Retirement Planning Tools

Request a Federal Retirement Report™ to review projected annuity payments, income verses expenses, FEGLI, and TSP projections.

• 2020 GS Pay Scales
• Retirement Planning For Federal Employees & Annuitant
• Budget Work Sheet
• Medicare Guide
• Social Security Guide
• Master Retiree Contact List (Important contact numbers and information)
• 2020 Leave and Schedule Chart (Use this chart to set target retirement dates.)
• Annuity Calculator (FREE Excel chart estimates annuity growth)

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.  

Posted in LIFESTYLE / TRAVEL, SURVIVOR INFORMATION

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Posted on Saturday, 22nd August 2020 by Dennis Damp

Estate planning is a sensitive issue and many avoid the subject until it’s too late. This can and will compromise your heir’s benefits, or at least delay them when they will be needed most.  It’s never too late to start. It is advisable to compile this information long before it will be needed, and the earlier the better. You can always update/revise your plans as time and circumstances dictate.

Request a Federal Retirement Report™ to review projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Our checklist is not all inclusive and is meant to provide essential information needed by survivors when an annuitant first dies. If the information isn’t compiled beforehand, heirs can collect the data as they work through the check list. However, it is advantageous to compile information ahead of time to make things easier for your family.

We recently expanded our Survivor’s Checklist to four pages and added additional content to help heirs retain their benefits through this difficult time.  The checklist includes procedures for reporting a death to OPM, lists critical contact numbers for the TSP, OPM, FEGLI, Social Security, Medicare, the records center, and others.

For those who haven’t collected this critical data, there is no time like the present to start. Download the form and add your personal information such as final arrangement contacts, attorney, will and trust location, and attach letters of instruction, a survivor’s report, list of bank and brokerage accounts, contact lists, and other essential data.

There are two versions available, a Word and PDF file. You can download the PDF file or use the Word file that you can expand and tailor to fit your personal situation.  Share these with your family and friends.  We are designing a comprehensive fill-in PDF format for a future release.

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Friday, 14th August 2020 by Dennis Damp

Many federal employees, including myself, purchased paper savings bonds though payroll deduction until paper bonds were discontinued eight years ago. Savings bonds mature after 30 years.  If you own bonds that are thirty or more years old, they no longer earn interest and should be cashed in. Many banks and credit unions no longer redeem them. 

Request a Federal Retirement Report™ to review projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Taxes are due on the interest earned when savings bonds are cashed in, and bonds held to maturity appreciated in value considerably. For example, a $500 series EE bond purchased on January 1, 1993 for $250 is worth $617 today and is earning 4%. The series EE bonds were sold at half face value, so it was purchased for $250, not $500. This bond is three years from maturity and a 4% yield is almost impossible to get anywhere today.

Fortunately, PNC, my local bank, still redeems bonds. If your local bank or credit union refuses to cash in your bonds, the process is tedious to say the least. you must download and complete the FS Form 1522 from Treasury Direct. You can also request a form by calling 844-284-2676 or email a request to savbonds@fiscal.treasury.gov.  All of the bonds you are cashing in must be listed individually on the form and if you need more space, attach either a list or FS Form 3500. The original form only has space for 10 bonds.

Here is the tricky part, the form must be signed by the bond holder in the presence of a certifying officer. Typically, you take the form to your local bank and have them place a medallion stamp on the document. Yes, it is a convoluted process, it was so much easier when everyone could simply redeem them at your local bank.

Follow the instructions on the form and mail the completed form with your bonds to the Treasury. Make sure you mail them to the correct address. Here are the two addresses listed on the form:

• Series HH or Series H savings bonds:

Treasury Retail Securities Services, PO Box 2186, Minneapolis, MN 55480-2186. (Phone: 844-284-2676–toll free.)

• All other securities:

Treasury Retail Securities Services, PO Box 214, Minneapolis, MN 55480-0214. (Phone: 844-284-2676–toll free.)

After processing, the Treasury will deposit the proceeds into your bank account and send you a notice of interest earned for tax purposes. The last time I cashed in mature bonds I received a tabulation of the interest earned from the bank teller.

What I recommend is finding a local bank or credit union in your area that still redeems savings bonds even if you have to open an account with them, it is so much easier.

That being said, you can buy savings bonds and Treasury notes, bills, and bonds electronically on  www.treasurydirect.gov. As a TreasuryDirect account holder, you can purchase, manage, and redeem bonds directly from your web browser. Explore the site before registering for a new account.

I still purchase inflation indexed “I bonds” and TIPS online through Treasury Direct to protect a portion of my retirement savings. Another option is to purchase inflation-protected securities through a mutual fund such as Vanguard Inflation-Protected Securities (VIPSX). This fund has a Morningstar Analyst Rating of Gold with 4 stars. 

It is easy to sign up for a Treasury Direct account and to redeem or purchase new bonds. The funds go into or out of your designated bank account. Just remember that you can’t redeem savings bonds until you owned them for at least a year.

Those in their early to mid-career may wish to consider EE bonds. Currently, they only pay .10% interest. However, if you hold them twenty-years they are guaranteed to double in value which is approximately a 3% annual return.

Helpful Retirement Planning Tools

Request a Federal Retirement Report™ to review projected annuity payments, income verses expenses, FEGLI, and TSP projections.

• 2020 GS Pay Scales
• Retirement Planning For Federal Employees & Annuitant
• Budget Work Sheet
• Medicare Guide
• Social Security Guide
• Master Retiree Contact List (Important contact numbers and information)
• 2020 Leave and Schedule Chart (Use this chart to set target retirement dates.)
• Annuity Calculator (FREE Excel chart estimates annuity growth)

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 31st July 2020 by Dennis Damp

Often as we age, health concerns take center stage and many times sideline our plans and dreams. A fact of life for retirees and those approaching retirement. Actually, this can happen at any age and it’s imperative we seek out competent medical help to get us back on our feet and enjoying life again.

Request a Federal Retirement Report™ to review projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Thankfully, federal and postal employees have the Federal Employees Health Benefits (FEHB) program available for our medical needs. They offer a large selection of reasonably priced plans to consider. However, having the best plans available doesn’t afford us the best care, we have to be proactive and seek out the most competent providers.

In most cases we are referred to specialists through our primary care provider (PCP) or we search our healthcare plan’s directory for specialists in our area. It’s frustrating when we don’t receive the answers we need from our doctor or there isn’t a clear-cut path forward for treatment. Often, we continue working with doctors and specialists even when we lack confidence in them. They are trained professionals, who are we to question their judgement.  

A disease doesn’t always warrant a standard treatment due to unique patient characteristics and underlying conditions. This is why second opinions are essential if you are uncomfortable with your treatment. We all deserve compassionate care. If your doctor or specialists isn’t responsive to your concerns, doesn’t offer a reasonable prognosis, or isn’t willing to address your questions it’s time to find another provider.

This has happened to me and my wife on many occasions.  I was diagnosed with Atrial Fabulation (A-Fib) in 1996. My PCP referred me to a local cardiologist, and after wearing a Holter monitor for several days they immediately recommended blood thinners and other caustic heart medication. After researching the subject, and discovering the significant side effects of the proposed drugs, I decided to seek a second opinion.

My wife was listening to a local radio show that suggested taking magnesium to restore a normal heart rhythm; I started taking it immediately and found a competent electrophysiologist for a second opinion.  I have what is called paroxysmal fibrillation, my heart goes in and out of normal rhythm.  Fortunately, magnesium has been successful in restoring my heart rate to normal during attacks. My new doctor suggested that I would only need blood thinners if my heart rate doesn’t return to normal in three to six hours.

My wife was diagnosed with glaucoma in her 40s. Her intraocular pressure (IOP) increased to the high 30s the first year of treatement, normal is 10-21 mm Hg. Her first doctor transferred Mary’s case to his associate and stated that she had the worst case of glaucoma he had ever seen. He insinuated that she would be blind in 6 years if they can’t reduce the pressure.

Mary spent several years there and every time she went in for a checkup, they pushed aggressive surgery. I discovered there was a new less invasive treatment called the SLT. A laser application that lowers IOP dramatically for some patients. I scheduled an appointment with the UPMC Eye Center in Oakland for a second opinion shortly thereafter.    

Twenty-five years later Mary still has her sight thanks to Doctor Joel Schuman. He performed numerous diagnostic tests to understand the full extent of her condition and established a realistic course of treatment.  Mary participated in numerous studies to help them develop an advanced Optical Coherence Tomography (OCT) test, a non-invasive tool that takes pictures of the back of your eye. After her doctor moved to New York, she again sought out a second opinion when complications arose.

Don’t hesitate to seek a second opinion if you are uncomfortable with your current course of treatment. You need to work with someone who is confident, professional, contemplative, explains procedures and conditions in laymen’s terms, and goes out of their way to make the patient comfortable. It is a relief when you leave a doctor’s office knowing that you found someone you can trust, who understands your condition, knows what path must be taken, and proceeds with caution.

Helpful Retirement Planning Tools

Schedule A Benefits and Retirement Planning Seminar in Your Area

• 2020 GS Pay Scales
• Retirement Planning For Federal Employees & Annuitant
• Budget Work Sheet
• Medicare Guide
• Social Security Guide
• Master Retiree Contact List (Important contact numbers and information)
• 2020 Leave and Schedule Chart (Use this chart to set target retirement dates.)
• Annuity Calculator (FREE Excel chart estimates annuity growth)

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in BENEFITS / INSURANCE, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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