Posted on Thursday, 11th June 2015 by Dennis Damp

Please share this article with your friends and associates. Any mention of our articles and www.fedretire.net on your Facebook, Twitter, and social media accounts would be appreciated.

Wow, going on eleven years retired and I’m still learning valuable life lessons! There are so many times in my life when I reflect back on certain events and realize the err of my ways or the good judgment that was made at the time with the knowledge at hand. The reflections that really stand out are the times that I could have, should have, made a different decision.

Recently we had a fence installed in our back yard and they had to drill 54 fence posts. I was concerned about the installation for a number of reasons. First and foremost, you never know what’s underground especially when you have a lawn sprinkler system, drainage pipes, electrical runs for outside lighting and whatever else may be lurking underground. The Call One service, where the utilities come out and mark all of their lines, went smoothly and fortunately we didn’t have any gas, sewer, main power or water lines to deal with.

I was fairly certain where one of our 4 inch PVC downspout drains was located in the back yard and advised the work crew where they needed to be cautious. When I told the crew chief that a 4 inch Schedule 40 drain pipe was probably about 24 inches below grade directly under a fence post location he stated that the dirt in that area hadn’t been disturbed and he thought otherwise. Even though I felt strongly that I was right, and after extending a 6 foot rod in the drain where the water existed the pipe and lining up the path the pipe would take, I let it go. Sure enough 20 or so inches below grade they broke the scheduled 40 drain pipe. The crew chief apologized and It took them several hours to dig out the area and repair the break.

How often have you ignored the obvious because either someone else suggested otherwise or you just let it go because you felt it wasn’t worth arguing about or simply didn’t want to make waves? This situation happens a lot, especially with contractors, and I’ve dealt with them for many years yet I still find myself in these situations from time to time. When we know we are right we have to insist on what makes sense to us unless or until someone else can persuade us differently. Otherwise we lose if we stand by and just let things happen. Retirement and estate planning is like that, you have to take control, find the right answers and solutions you need to make retirement work for you and your family.

I’ve been working with an attorney on and off for about a year to revise our estate plan’s wills and trusts. I thought it time to get a professional involved. Originally I drafted our family’s wills, trusts, and other documents using NOLO WillMaker Plus software in 2004. I ignored my gut feelings and initial reservations about our attorney’s proposed plans. After asking for numerous clarifications I deferred to his expertise. A huge and very costly mistake. Instead of making our plans easier to administer for my wife and heirs it ended up far too complex than I and my wife desired.

The long and short of it is that if I don’t understand something I generally won’t proceed until I do and it seems the more I research and dig into the subject the more questions arise. The more questions you ask an attorney the bigger the bill! What should have been a fairly easy and straight forward plan, considering my wife and I have been married for going on 47 years became unwieldy.

I suppose it’s like reading the fine print on a contract such as an insurance policy. If you don’t understand the intent you or your loved ones could suffer the consequences. For major things like this you shouldn’t leave things to chance.

I don’t know why most attorneys insist on writing wills and trusts in 17th century language that only lawyers and professors understand! The Wills and Trusts that I completed in 2004 using NOLO’s WIllMaker Plus and their Revocable Trust software are written in everyday language and they provide summary documents for your estate executor, trustee, heirs, and/or administrator. The good news is that most can use NOLO’s software to draft wills, trusts, health directives, numerous estate documents, and various powers of attorney. The program explains the process and asks you questions. Your replies and expressed desires are used by the software program to write your will, estate documents, and a revocable trust if desired that is designed specifically in accordance with your State’s laws. If you have special situations such as owning a business, have a large estate, or your heirs have special needs it is suggested you hire an attorney to help you through the process. NOLO has a special offer for WillMaker Plus 2015 purchasers. They are including a free revocable trust program with your purchase.

I am working with my attorney to revise our documents. If I’m not satisfied with the new proposals and additional costs I’ll have to look at other options or possibly go back to NOLO and do it on my own again. My main reason for going to an attorney in the first place was to handle the transition of my business upon my death and to simplify things for my wife and heirs when I’m gone. I discovered too late, after researching the subject, that a simple revision to my company’s operating agreement was all I needed for the business.

Stop, Look & Listen

I leaned over the years to research, observe, and listen first before proceeding. This approach has served me well over the years and saved me a lot aggravation. I did use this technique with our estate plans but somehow we got off track.

Another technique I use to avoid making bad decisions is that when I feel that something isn’t right, question when or If I should proceed or am just emotionally charged, I don’t make an immediate decision. I sleep on it and revisit the matter at a later date when I’m refreshed and able to be truly objective.

Rely on Your Partner

I’ve learned over the years that my wife has tremendous insight. It has taken me a lifetime to truly appreciate my wife’s profound good sense and ability to see things that I’m too caught up with at the moment to appreciate. Use your partner as a sounding board and step back and understand the true intent of their concern without becoming defensive. Retirement is a two way street and your partner is impacted just as much as you are and they need to share in the decision making process and be an active participant.

Approaching Retirement

When approaching retirement employees are concerned about the best date to retire, how to maximize benefits, and if they can in fact afford to maintain their lifestyle in retirement. Retirees are faced with many decisions; when to take Social Security, sign up for Medicare, change our benefits, establish a will and living trust, and a number of other estate planning tasks such as power of attorney, health directives and so much more! It can be intimidating and confusing to say the least. We have to rely on others to provide succinct advice and counsel from those who we can trust and the key is to find someone trustworthy to help us through these hurdles. I call them hurdles because they can be difficult to navigate and much research is needed to make informed decisions or to find a competent advisor to help us along the way. This is why I launched www.federalretirement.net, a federal employee and annuitant’s retirement planning website and blog at http://www.fedretire.net prior to my retirement in 2005. I wasn’t able to find the information I needed to make informed retirement and benefit decisions and as I researched each facet of my pending retirement I posted what I learned, and continue to learn, on these sites.

FEHB Discussion

Recently Jackie, one of our newsletter subscribers, asked me why I have Blue Cross and Blue Shield Basic opposed to the Standard option. She is 62 and her husband is on her policy as well. Over the years she reviewed the Basic option but was concerned about the coverage compared to the Standard Option.

This is just one of the many benefit’s decisions we have to make. I explained that my wife and I have had Blue Cross Blue Shield basic for years without any issues. Basic works more like an HMO with some co- pays and it is less confusing than Standard. The big difference between the two is that you have to use Blue Cross and Blue Shield (BC/BS) preferred providers with the Basic plan and they pay nothing if you decide to go to a physician that isn’t one of their providers. Over the years we have easily found and used their preferred providers and the vast majority of hospitals and physicians are already in the BC/BS nationwide network. Neither of us take prescription drugs so we didn’t need the 3 month mail supply feature that the standard option offers.

Also, when you are age 65 and sign up for Medicare, BC/BS pays all co-pays, co-insurance, and deductibles except for prescriptions. Medicare is our primary provider now that we are 65 and BC/BS is our secondary provider. Many at age 65 look for lower cost FEHB plans because at 65 you start paying for Medicare Part B; Part A is free. Here is more information on changing to a lower cost FEHB plan when you sign up for Medicare.

Once you sign up for Medicare Part A and B Blue Cross and Blue Shield, along with most other FEHB plans, pay all co-pays, co-insurance, and deductibles ─ except for prescription co-pays ─ because of the savings your FEHB plan receives by not being the primary provider.

Please pass this article on to your friends and associates and I would appreciate any mention of our articles and web sites on your Facebook, Twitter, and other social media accounts.

Retiree Job Center Update

If you intend to work in retirement for whatever reason check out our Jobs Center. Employers looking to recruit federal retirees and those soon to retire post job vacancies on our site. Recently THOR Solutions, LLC of Norfolk Virginia posted an opening for a Human Resource , Staffing and Recruiting Specialist. Visit our Job Board for complete details. Another recent posting is for an accountant / bookkeeper.

Request a Retirement Benefits Summary & Analysis. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Helpful Retirement Planning Tools Distribute these FREE tools to others that are planning their retirement

• Retirement Planning Guide
  • Federal Retiree Job Opportunities
• Master Retiree Contact List (Important contact numbers and information)
• How to be Financially Prepared When You Retire
• How to be Emotionally and Physically Prepared When You Retire
• 2015 Leave & Schedule Excel Chart (FREE Excel chart tracks actual leave balances)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

Visit our other informative sites

• Federal Government Jobs & Career Center
• Federal Employee’s Career Development & IDP Center

The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice and our articles and replies are time sensitive. 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, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Thursday, 28th May 2015 by Dennis Damp

Many retirees and active federal employees have been waiting for this for some time now. Starting this fall you will be able to enroll in any of the FEHB health plans under the new Self Plus One rate schedule. This year’s annual open season begins November 9th and the new rates will be effective January 1, 2016.

Self Plus One is a new enrollment type in the Federal Employees Health Benefits (FEHB) Program that allows you to cover yourself and one eligible family member you designate to be covered. Starting in 2016, all FEHB plans (your health insurance plans) will offer a Self Only, a Self Plus One, and a Self and Family enrollment type. Employees and annuitants will be able to select a Self Plus One enrollment beginning in the 2015 Open Season.

Self Plus One Health Insurance Election

The Self Plus One option isn’t automatic. In other words if you are currently enrolled in a Self and Family option, and there are only two of you to be covered, you must change your enrollment during open season to the new Self Plus One option. There are other restrictions and additional guidance is available on OPM’s Self Plus One Special Initiatives page.

The new plan information and premiums won’t be published until later this year. If you compare the savings from the Dental and Vision program in 2014 that has offered the Self Plus One option since its inception the average savings could be significant. For example, the Met Life Federal Dental Plan premium for rating area 1 Self Plus One was $17.38 in 2014 and their Standard Option Self and Family was $26.06. The Self Plus One premium was 33.3% lower than the Family option! Quite a savings especially for retirees that are living on a fixed income. My Blue Cross Blue Shield Basic Family option premium is $321.67. A 33% decrease would bring this down $106.15 to $215.52. This decrease would cover most retirees Medicare Part B premiums except for those who have income adjusted Part B premiums.

We won’t know the actual savings for several months and the savings could be more or less than what the Dental and Vision programs offer.

Retiree Employment Update

Many job opportunities are available for retirees − and those planning to retire − to earn additional income in retirement. Many retirees work full or part time, for many reasons; social, financial, and to keep active. Federal retirees can go back to work in the private sector without any impact on their federal annuity or benefits. Our Jobs Board offers free job postings to companies that are looking for highly qualified, reliable, and skilled federal employees approaching retirement and active federal retirees. We have several new jobs listed for accountants and bookkeepers, financial officer and data manager. Visit our Jobs Board frequently to check out new listings in your area. The job postings are geo targeted to your search location.

Request a FREE Retirement Benefits Summary & Analysis. A sample analysis is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Helpful Retirement Planning Tools Distribute these FREE tools to others that are planning their retirement

• Retirement Planning Guide
  • Federal Retiree Job Opportunities
• Master Retiree Contact List (Important contact numbers and information)
• How to be Financially Prepared When You Retire
• How to be Emotionally and Physically Prepared When You Retire
• 2015 Leave & Schedule Excel Chart (FREE Excel chart tracks actual leave balances)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

Visit our other informative sites

• Federal Government Jobs & Career Center
• Federal Employee’s Career Development & IDP Center

The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice and our articles and replies are time sensitive. 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, EMPLOYMENT OPTIONS, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Saturday, 16th May 2015 by Dennis Damp

(Updated 2/26/2023) I received a call from the wife of a friend who passed away. She was concerned about her options after being notified by the TSP that her husband’s account was converted to the G Fund upon his death. She was approached by a financial planner that suggested she transfer her husband’s TSP account to them, and they would manage it for her. Her husband was an astute investor and knew the ins and outs of the stock market and personally managed all of their investments.

Don’t Break the Bank.

Before Making a Change

Before considering moving your TSP to a financial planner read Have You Considered Hiring A Financial Planner that discusses the pros and cons that are involved with such a move. A financial planning firm will often charge 1.65% a year of your total account value or more to actively manage your funds. For example, if you have $300,000 in your TSP G Fund, and transferred it to a financial planning firm, they can charge you up to $4,950 a year, with a 1.65% annual fee, for their services plus individual fund management fees and in some cases transaction fees.

The TSP G-Fund charged $177 in 2023, .057% for that same amount, 57 cents per thousand dollars in your account in 2023, and there aren’t any transaction fees! The financial planning firm would have to achieve much higher gains to offset their fees. Typically, higher gains often come from higher risk investments.

Often when a spouse who managed the finances for the family dies, the surviving spouse is caught unawares and doesn’t know how to proceed. This is why a financial plan and estate plan are so important. Not just for annuitants but for all federal employees as well. How would your family cope and survive if something tragic happens to you! I have always been a planner and enjoy the process because it creates order out of potential chaos.

A survivor is vulnerable at the time of loss and for many months thereafter. It’s best to not make any major financial decisions for at least 6 months or more to give you time to grieve and deal with all of the issues at hand. The G-Fund is a safe haven that gives you time to evaluate your options and plan you next step.

TSP Advantages

The TSP is one of the lowest cost plans available anywhere and it can be easy to manage especially for retirees where they, for the most part, want to conserve and not risk their life savings. The G-Fund has NO MARKET RISK and Uncle Sam guarantees that the G-Fund will never decrease in value unlike all other funds. An article that I wrote titled The TSP Advantage (Should I Stay or Go) outlines the advantages of the THRIFT Plan. They charge extremely low management fees that average 69 cents per thousand dollars invested for the traditional G, C, I, F & S funds and 64.8 cents for the Life Cycle funds.

Bond Fund Facts

The disadvantage of bond funds in general right now is that the Federal Reserve is aggressively increasing interest rates, bond funds typically decrease in value because the bonds they hold in their account have a lower yield than the newer issued bonds. That won’t happen with the G-Fund since it is guaranteed not to decrease in value as noted above. When you compare the G-Fund to any Certificate of Deposit (CD) or most other bond funds it’s rate of return is higher than most would expect.

In 2022 the G-Fund rate of return was 2.9%, the same year it was difficult finding a CD paying close to that rate until recently as the short-Term Treasury Bill’s rate skyrocketed to 5%. If the current rate of return stays on track, the G-Fund return in 2023 will exceed 4% and higher if the Federal Reserve continues to raise rates to fight inflation.  Your account will never decrease in value if you retain 100% of your account in the G-Fund.

The L-Income Fund

The problem with keeping everything in the G-Fund is that, for the most part, it won’t keep up with inflation long term. There is another option for annuitants that many select, the L-Income fund. This fund is designed to achieve a low level of growth with a high emphasis on preservation of assets. Unlike the other L Funds, the L Income Fund’s asset allocation does not change quarterly. However, like the other funds, it is rebalanced daily to maintain the following target investment mix:

• 59.84% G-Fund (Government Bonds)
• 5.66% F-Fund (Fixed Income)
• 12.81% C-Fund (S&P Index)
• 3.11% S-Fund (Small Cap)
• 8.58% I-Fund (International)

The L Income fund averaged -2.77% in 2022 compared to +2.98% for the G Fund. There is market risk to 26% of your total investment and the tradeoff for that risk is a higher yield overall as long as the market doesn’t tank again like it did in 2008 and 2009. The ten-year rate of return for the L-Income fund was 3.93 to 2.11% for the G-Fund. The key to determining if you can tolerate the risk is whether or not you need the funds now to live on and when you anticipate taking withdrawals to maintain your lifestyle in retirement.

There are TSP options to consider with your THRIFT plan and the more you know about it the better prepared you will be when the funds are needed. Explore your options carefully and take time to understand exactly what impact your decisions will have on your account balance, the bottom line.

• Retirement Planning Guide
• Master Retiree Contact List (Important contact numbers and information)
• How to be Financially Prepared When You Retire
• 2023 Leave & Schedule Excel Chart (FREE Excel chart tracks actual leave balances)
• Survivor’s Guide
• Estate Planning Guide (An 11-part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended, nor should it be considered investment advice and our articles and replies are time sensitive. 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 ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Wednesday, 29th April 2015 by Dennis Damp

Up until recently the only way you could obtain a federal retirement ID Card, officially referred to as a “Retirement Services Reference Card,” was to call OPM and request a copy. They would send it in the mail and you would receive it in 5 to 7 business days. Recently OPM Services Online added a Retirement Services Reference Card printout function to their service. My card was damaged and instead of calling OPM I simply signed on to OPM Services Online and printed out a new copy. It only took 5 minutes. Here is a screen shot of my card with my name and ID number removed.

When I first printed the card it was too small. My print scale was set at 70%. If you reduce the size of your prints be sure to change it back to 100% before printing your card.

Retiree ID Card

Herb Casey, one of our quest writers, wrote a comprehensive article titled “Connect to OPM Retirement Services Online” that walks you through the site and explains how to get connected. I use this service to printout my 1099-R income tax form at the end of the year. It is sent in the mail but I like to get a jump on my taxes and it is available online and easy to print out. It is often difficult getting through to OPM’s retirement hot line so I use this service whenever I can to change allotments, print out annuity statements and verification of your FEGLI insurance coverage, and other features.

Hearing is Believing

In my article titled “Did You Hear That? A fitting End to a Frustrating Problem” I discuss how it is difficult for many, especially retirees – older folks, to hear the TV clearly and the solution I discovered. Basically I purchased wireless capable hearing aids through Costco and a TV streamer that sends the TV sound direct to your hearing aids. The TV streamer works fine however the downside is that it drains the hearing aid batteries to the point that I was changing the batteries every other day! Also the fidelity of the streamer isn’t nearly as good as what a headset provides.

While researching alternatives online I discovered a sound solution. The web site 4homespeakers.com, a division of JMJ Supply LLC, specializes in the sale and support of wireless speakers, headphones, and hearing impaired devices. They tailor systems to provide a vast array of unique options to suit all of your hearing needs and more. I purchased their RCSA RF Wireless TV Speaker and Headphone Combo about six months ago and my wife and I use it daily. This package offers a wireless 900 MHZ transmitter system that allows you to hear the audio up to 150 feet away from the source. You get a headset with cradle and a small tower speaker for $129.99, now on sale for $79.99. I like the option of having the wireless speaker and headset for my wife and I. If you have dexterity or poor eyesight issues you may want to upgrade to a system with a charging base that you just set the headsets into and they automatically charge. With the system we have, that’s currently on sale, you have to plug in a small charging cable to the headset from the headphone cradle and the connection may be difficult to make if you have sight or dexterity issues.

Headphone & Speaker System

The system we have, one of many they have available at very reasonable prices, is suited to our needs. My wife uses the headphones and I often use the speaker that is small enough to sit on an end table or on the floor by your chair. You plug the headset cradle into your TV’s audio out RCA jack and it drives both speaker and headset. If you don’t have a RCA audio out jack on your TV they have an analog to digital converter that connects your headset to the Toslink output and another options will connect your audio through a HDMI output. The converters are not included with the package. Check your TV to confirm what connection options you have before ordering. Their tech support can walk you through the setup if you are having problems.

Our TV has an RCA jack and it works fine as long as you turn up your TV audio so that the audio out of the RCA jack is sufficient to power the remote headset and speaker. When you plug in your headset to the RCA jack your TV speakers are turned off.

If you need two headsets or prefer separate small speakers at multiple locations they offer that as well. You will also find high fidelity options available that some prefer. I also purchased a RCA audio splitter that allows us to use two headsets if desired. The reason I ordered the headset and speaker combination is that I can turn off my speaker and read in the same room that my wife is watching TV without distractions. Another benefit of having a speaker is that when both of us have headsets on we can’t hear the phone or doorbell ring.

Check out their site to see what options are best for you. They have numerous videos that demonstrate how each system operates and connects to your TV.

Request a FREE Retirement Benefits Summary & Analysis. A sample analysis is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections.

• Retirement Planning Guide
  • Federal Retiree Job Opportunities
• Master Retiree Contact List (Important contact numbers and information)
• 2015 Leave & Schedule Excel Chart (FREE Excel chart tracks actual leave balances)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

Visit our other informative sites

• Federal Government Jobs & Career Center
• Federal Employee’s Career Development & IDP Center

The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice and our articles and replies are time sensitive. 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, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS

Comments (0)|  Print This Post

Posted on Monday, 6th April 2015 by Dennis Damp

(Updated 2/26/2023) In my article titled Have You Considered Hiring a Financial Advisor, I discussed professional investment assistance and the advantages and costs associated with hiring a financial advisor.  This article focuses on the Thrift Savings Plan (TSP), its benefits, and their very low management fees compared to other funds.  It also introduces you to various options that you have available within your TSP to grow and manage your retirement nest egg.

Many retirees contemplate moving their TSP to other firms that promise a more diverse basket of fund options, higher returns, and the ability to purchase individual securities.  Those who take the leap and leave need to be aware of the risks and costs involved beforehand.

Transferring to Another Firm

After retirement federal annuitants can transfer all or a part of their TSP account to a professional financial management firm or to a self-managed retirement account with companies like Fidelity and Vanguard where many more investment options are available. They can open a retirement account for you and assist with transferring all or a part of your TSP to a brokerage account where you can purchase any mutual fund, stock, ETF, and bond if desired.  If you elect to do this, be sure to have your TSP funds transferred direct to the new retirement account otherwise the transfer would be considered taxable by the IRS.

Federal employees can also make an age-based in-service withdrawal any time after they reach age 59½ as long as they are an active civilian federal employee or a member of the uniformed services. Some use the age-based withdrawal option to transfer a part of their TSP to a private retirement account that they can personally manage or to a financial planner to compare their performance and services.  A word of caution here; a friend of mine used an age-based withdrawal to pay for his daughter’s wedding and was surprised at the amount that was withheld for federal taxes.  If you withdraw the funds for personal use the entire amount will be taxable in the year withdrawn.

I have my company’s retirement account at Fidelity and the advantage for me is that I can pick and choose from a broad spectrum of investments.  My account is set up like any other brokerage account except it is tax deferred until I started withdrawing funds at age 70 ½. I actively manage my account and Fidelity’s fees are reasonable.

If you are an experienced investor, understand sound investment principles, and are willing to study and follow the market wherever it takes you, this may be the way to go.  Others, with limited investment experience or lack the time needed to personally manage their account could move funds to a fee based financial advisor that manages their accounts for them.

I’m not a professional investor however I did write a primer titled Dollars and Sense, Safe Investment Strategies for Small Investors back in the 1980s. The book was based on my personal investment strategies, and I’ve always leaned towards a very conservative approach to all things financial.  I have a personal interest in the TSP because I’ve invested in the THRIFT Plan from its inception in the 1980s. Even as a CSRS employee I was able to contribute 5% and over time, without any matching funds, my TSP account grew appreciably.  I retired 17 years ago and elected over the years to keep my TSP fund intact for a myriad of reasons.

TSP Advantages

The TSP funds have reasonable management fees that average 69 cents per thousand dollars invested for the traditional G, C, I, F & S funds and 64.8 cents for the Life Cycle funds. Indexed funds typically have the lowest management fees and in the private sector they have come down appreciably. The Fidelity 500 mutual fund only charges a .015% management fee or 15 cents per thousand invested! Stock funds average expenses are around .80%, considerably higher than indexed funds.

Expenses and fees matter and can make a significant dent in your long-term savings. For example, the Securities and Exchange Commission in their report titled “How Fees and Expenses Affect Your Investment Portfolio” reports that a 1% annual fee reduces an initial $100,000 portfolio, that earns an average of 4% a year over 20 years, by nearly $30,000! In this example the account would be worth $210,000 with a .25% annual fee to just under $180,000 with a 1% annual fee.

If you transferred your account to a financial planning firm, you would more than likely add another 1% to 1.65% for asset management to fully managed accounts plus transactions fees in certain cases on top of the fund fees that would further reduce your gains.  Managed account fees often start at or above 1.65% of the first $500,000 invested or an additional $1,650 per $100,000 in your account each year plus fund fees.  Financial advisors actively manage your accounts, and they strive to beat the market averages which if successful can significantly offset their management fees.  The key is finding a firm with a sound track record that can provide the services you need, and the investment results you desire.

TSP Funds

Federal employees and annuitants can research all of the funds in their account online at http://www.tsp.gov including the performance of each fund. There are also no transactions fees when you elect to rebalance your account or simply switch to a different fund allocation. Recently, the TSP added the Mutual Fund Window where you can now purchase funds through them for your account. However, the TSP’s mutual fund purchase fees are rather high considering that other companies like Fidelity and Vanguard don’t charge for fund purchases within their family of funds.

The TSP funds are not the typical mutual fund even though the C, F, I, and S index funds are currently managed by Blackrock and similar to their mutual fund offerings.  The G Fund assets are managed internally by the Federal Retirement Thrift Investment Board.  The G Fund is invested in nonmarketable U.S. Treasury securities that are guaranteed by the U.S. Government and the G Fund will not lose money.

The C Fund is designed to match the performance of the S&P 500 while the F Fund’s investment objective is to match the performance of the Barclays Capital U.S. Aggregate Bond Index, a broad index representing the U.S. bond market.  The I Fund’s investment objective is to match the performance of the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Index. The Small Cap S Fund’s objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of U.S. companies not included in the S&P 500 Index. The C, F, I and S funds are trust funds that are regulated by the Comptroller of the Currency, not by the Securities and Exchange Commission, and therefore do not have ticker symbols.

The F and C Fund assets are held in separate accounts and the S and I Fund assets are invested in Collective Funds. These trust funds are comprised of investments by tax-exempt institutions like the TSP, such as pension plans and endowments. Investing collectively in this way can be advantageous because it reduces trading costs. The securities held in these commingled funds are held in trust and they are not assets of BlackRock, nor can they be used to meet the financial obligations of BlackRock.

The Life Cycle funds are a combination of the primary funds mentioned above and they are adjusted to a more conservative mix as you approach the life cycle target date. These funds are good for those who are uncomfortable with making investment choices and when they time out you end up in the Income Fund which is about 69% invested in the G Fund. You still maintain a mix of the other funds to hopefully beat inflation and still grow your funds for when they are needed.

TSP Annuity Conversions

According to the Thrift Savings Board, “When you are ready to withdraw all of the money from your TSP account, you can do it all at once, over a period of time, or you can purchase an annuity that will make payments to you for life. For maximum flexibility, you can choose any combination of these full withdrawal options.”

The Life Annuity option can provide an additional monthly payment to you and your spouse for life if desired and there are many variations to consider. Visit the TSP Life Annuity online guide to learn more about all of the options available and to use their income calculator to help you determine if a Life Annuity is right for you. Before converting to a life annuity through the TSP you may wish to compare offers from other providers first and to do that you really have to read the fine print on the offers. There can be substantial differences between providers.

Before abandoning the TSP ship know why and where you are heading and if the destination you are targeting will be able to perform to your expectations.  Your TSP account can be a significant portion of your total retirement, especially for FERS employees. We all need to be good stewards of our retirement funds to achieve a secure and sound financial retirement.  Personally, I take my time with major financial decisions and try things out on a smaller scale first. For example, if I was considering moving my account to a personally managed retirement account or to a financial planning firm, I would only transfer a portion, maybe 25 to 50% tops, and give it a year or more to compare the results.

• Retirement Planning Guide
  • Federal Retiree Job Opportunities
• Master Retiree Contact List (Important contact numbers and information)
• 2023 Leave & Schedule Excel Chart (FREE Excel chart tracks actual leave balances)
• Survivor’s Guide
• Estate Planning Guide (An 11-part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended, nor should it be considered investment advice and our articles and replies are time sensitive.

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

Comments (0)|  Print This Post

Posted on Sunday, 29th March 2015 by Nancy Holston

A step back in time awaits you in this seaside city on the Atlantic coast of Florida. Whenever I visit I always plan lunch or dinner at The Columbia Restaurant. It sits in the center of the old city and is a personal favorite. They offer sangrias made table side, the white is the best I have had anywhere made with a sparkling wine. The menu is specific for lunch or dinner so if you plan to visit check the menu to determine which menu best suits your desire. The old city is full of galleries, eateries and historic sites including museums and provides a view of early life in North America. There is likely to be something to peek your interest during your visit.

Saint Augustine is the oldest permanent settlement in the United States. Founded in 1565, it continues to provide a view of life in the early settlements created in the New World. The Spanish style fort, Castillo De San Marcos, protected the city and is a National Landmark maintained by the National Park Service. Tours are available daily before dark. Fort Matanzas also guarded the city from those approaching on the river and has tours by boat. St. Augustine’s lighthouse is also open and includes a museum. It is located south of the city on the coast. The old city includes the oldest standing one room school house which is open for tours. Mission of Nombre de Dios is the smallest church in America also located in the old city.

St. Augustine offers a variety of activities. The waterfront area includes walkways for a nice stroll along the coast past the marina and eateries of this seaside city and the opportunity to sit and enjoy the view on one of the many benches along the way.

Tour stands are situated throughout the city offering a diverse selection of tours. There are several guided walking tours of specific areas that offer an opportunity to learn about the history of the city. Ghost story tours abound and provide you with enough details that you can visit local establishments following your tour to see for yourself the spirits that visit, if you dare. Ponce De Leon believed he had found the fountain of youth and the nearby park includes a chance to see the fountain and perhaps restore a youthful perspective if nothing else during a visit there. Segway tours are also offered whether you want to soak in some local history or just try it for a fun ride. You can always enjoy spirits while you are looking for Spirits on the Haunted Pub tour. Pirates that preyed on these coastal waters are also featured on tours and at a local museum.

Special events are planned this year to celebrate the 450th anniversary of this quaint city. The main events to celebrate the 450th anniversary occur Labor Day weekend. Festivities include a Spanish Wine Festival, fireworks on the Matanzas River September 5th and Founders Day from September 4-7th includes several activities in the City. In the early evening you can observe the changing of the guard. Complete in 18th Century Spanish Soldier costume the St Augustine Garrison march from the old city to city hall. Visit the websites listed below for more detailed information.

Of course there are water activities throughout the year in St. Augustine including dolphin watching trips, Eco tours in kayaks, surf lesson camp, sunset cruises (complete with Christmas lights during the holiday season), sailing trips, speedboat tours, parasailing, ghost boat tour and of course sea fishing.

St. Augustine is located between Jacksonville and Daytona Beach Florida. It is also an easy day trip from Orlando if you are visiting theme parks. All in all it is a beautiful city full of history and charm. It is among my favorite seaside cities to visit.

• http://oldcity.com/
• http://augustine.com/
• http://staugustine-450.com/
• http://visitstaug.com/

Request a FREE Retirement Benefits Summary Analysis from a local adviser. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. A sample analysis is available for your review. This service is not affiliated with www.federalretirement.net

Learn more about your benefits,  employment, travel, and financial planning issues on our site and visit our Blog frequently at https://fedretire.net to read all forum articles.

Visit our other informative sites

• Federal Employee’s Retirement Planning Guide
• Federal Retiree Job Opportunities
• Federal Employee & Retiree BLOG
• Federal Employee’s Career Development & IDP Center
• Stolen Car Plates & Recovery Guide
• Take Charge of Your Federal Career (A Career Planning Workbook)

• 2014 Excel Leave Chart (target 2014 retirement dates and determine exact leave balances for each date)
• How to be Emotionally and Physically Prepared When You Retire
• How to be Financially Prepared When You Retire
• Master Retiree Contact List (Important contact numbers and information)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances. Travel policies and packages are subject to change without notice. To ensure the accuracy of this information, contact travel providers and hotels at the time of your bookings to confirm pricing, itinerary, and all costs. The comments and observations are limited to the author’s personal experience and your results may vary significantly. This article and replies to comments are not intended to substitute for professional travel services. Our reply is time sensitive. Over time, various dynamic economic factors relied upon as a basis for this article may change.

Posted in LIFESTYLE / TRAVEL, Travel

Comments (0)|  Print This Post

Posted on Saturday, 7th March 2015 by Dennis Damp

The impact that our Cost Of Living Adjustment (COLA) has on our annuity is significant and without it retirees would find themselves doing with less as they age. Even though our COLAs don’t truly keep up with inflation as claimed we at least experience increases most years. If COLAs would have been paid in 2010 and 2011, like most years, our annuities would have been several percentage points higher today.

Since I retired on December 31, 2004 my annuity has increased over 20% for an average increase of just over 2% a year during this period. Social Security reports that in 2005 the Average Wage was $35,448 and in 2014 wages increased to $44,888 and this mirrors our COLA increases.

When I was discussing retirement with one of my uncles years ago he warned me about how his corporate annuity hadn’t increased in 20 plus years. My uncle worked in the banking industry and when he retired the annuity he received from his employer he thought generous. Over 20 years later, without any cost of living increases, they were struggling to keep up with the high cost of everything. Fortunately they received Social Security which did increase each year. Without COLAs we too would see our annuity’s buying power shrink dramatically in a few short years.

My mother was born in 1914 and she told me that during the 1930s they could buy a complete meal at a restaurant including drinks for 35 cents! You can’t buy a cup of coffee for that today. Even at those prices my mother couldn’t afford to eat out. She was forced to quit school after sixth grade, along with her 5 sisters, and shortly thereafter went to work. Her first job paid $2.00 a week working 6 days a week as a maid for a couple in Pittsburgh. She and all of her sisters had to send most of their pay home to their father!

We visited an antique store back in the 1970s and I picked up a copy of LIFE magazine for my birth month, May 1949. LIFE magazine was one of the premier publications back then and it was huge, 14 by 10 1/2 inches and a half inch thick. The ads are fascinating to read; GE radios starting at $19.95, console black and white TVs from $395 to $985, Lane Cedar Hope Chests for $49.95, razor with 10 blades in a case for 98 cents, watches for $2.50 to $4.95, TUMS 10 cents a pack, cameras $9.98, and they advertised dog food at as low as 8 cents a day.

Some of the items on this 1949 list seem to contradict the premise that everything goes up over time. Today you can buy a 48 inch flat screen TV at Wal-Mart for $388 and we purchased a 60 inch SONY smart TV recently for under a $1,000. All well within the range of what you could buy black and white consoles for in 1949! TVs were just coming into the market and they were a luxury back then, very few homes, less than 1 %, had them. Here is a list of what things cost in 1949; compare them to today:

• Average annual salary: $3,600
• Average cost of a car: $1,650
• Gas: 26 Cents a gallon
• Average home: $14,500
• Bread: 14 cents
• Postage stamp: 3 cents
• The DOW reached 200!

Hopefully our COLAs will continue to provide the cushion everyone on a fixed income needs, more buying power as costs increase. Fortunately we also have the THRIFT plan to help grow our retirement funds. The L Income fund offers some growth while protecting most of your nest egg in the G Fund which is guaranteed never to decrease in value.

The 2016 COLA may be lower than the 1.7% we received this year if trends continue. The October and November 2014 CPI-W figures were lower than the previous three month period. If the CPI-W continues to decrease our COLA will follow suit. Many factors contribute to the CPI-W. For example, wall street is contemplating that the Federal Reserve will raise interest rates soon due to a heated up economy that can lead to inflation. That would be good news for the 2016 COLA.

It’s too early to determine the actual impact and the trend could change for any number of reasons as we progress through the year. Because 2016 is a presidential election year my gut feeling is that we will receive a COLA, it just may not be as much as we would like or deserve.

Update

We are in the process of totally redesigning and upgrading our Federal Employees Retirement Planning web site. If you visit later this month don’t be surprised when you find a new and updated format. The new site is designed to display perfectly in all media from desk top computer, iPad, and tables to smart phones. Over 50% of all site traffic now comes from mobile devices.

The new site will be much easier to read and navigate and we are also reviewing and updating content as we go along. Visit www.federalretirement.net later this month to check out the new format and functionality. Let us know what you think and your input is always welcomed. We use visitor submitted comments to keep our site up-to-date and focused on the true needs of our site users.

We are still looking for a retired federal annuitant with an extensive background in HR and federal benefits to host our Benefits and HR Forum. If you are retired, enjoy writing about things that matter to federal employees and annuitants, would like to stay active and involved after leaving federal service, send an email to ddamp@aol.com and include your phone number. The person selected would also review and provide updates for our website.

• Request a FREE Retirement Benefits Summary & Analysis. A sample analysis is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections.

• Retirement Planning Guide
  • Federal Retiree Job Opportunities
• Master Retiree Contact List (Important contact numbers and information)
• 2015 Leave & Schedule Excel Chart (FREE Excel chart tracks actual leave balances)
• Survivor’s Guide
• Estate Planning Guide (An 11 part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

Visit our other informative sites

• Federal Government Jobs & Career Center
• Federal Employee’s Career Development & IDP Center

The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended nor should it be considered investment advice and our articles and replies are time sensitive. 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 ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, FINANCE / TIP, LIFESTYLE / TRAVEL, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)|  Print This Post

Posted on Friday, 13th February 2015 by Dennis Damp

(Updated 2/26/2023) Many are uncomfortable with investing and managing money in general. The Federal Reserve intentionally kept interest rates artificially near ZERO for many years and now that interest rates and inflation are soaring in 2023, do we ladder CDs, buy short term Treasuries and corporate bonds, and/or invest in the market with its inherent risks?

If we do invest in the market what stock and bond mix will not only preserve but grow our nest egg? If we are doing this on our own, do we buy individual stocks and bonds or invest in indexed mutual or exchange traded funds that often have very low management fees.

Years past, many retirees were able to ladder CDs making 5% or more with 48 month or longer maturities. That may be happening again very soon as the Treasury raises interest rates to fight inflation. Those in the TSP are keeping large amounts in the safe G-Fund to take advantage of rising yields. Unfortunately, we don’t know what lies ahead and there is so much to consider that many seek out professionals to help them navigate the investment world.

Often, one or the other spouse takes control of finances and manages investments for the family. If the person in control knows what he/she is doing, and has the time and energy to invest wisely, that often works fine as long as that person doesn’t take undue risks with your family’s life savings.

I basically assumed this responsibility with my family and have done this for years. Even though I manage the investments I discuss options and strategies with my spouse to solicit her input and she is knowledgeable about all of our accounts.

For situations where neither partner is knowledgeable about investments federal employees and annuitants often rely on the TSP Life Cycle Funds to steer them towards retirement. Annuitants often consider investing in the L Income fund, a conservative choice with the majority in the G-Fund yet enough in the other funds to provide some growth even in retirement.

There are other investments that must be managed such as IRAs, private sector 401Ks, brokerage accounts, savings bonds, savings and money market accounts, and so on. The tide is turning in 2023, and higher yields are finding their way into most fixed income investments including I-Bonds, CDs, Treasury Bills and Notes, and many are abandoning riskier investments for this safe harbor.

One is the Loneliest Number That There Ever Was

The problem with having one person managing investments is that when that person becomes infirm or dies the surviving spouse is generally at a disadvantage. They will have to turn to another family member or financial adviser to help manage and preserve what has taken a lifetime to accumulate. Hence the need to establish a relationship with a knowledgeable financial adviser while both are alive and healthy, especially if you don’t have a family member to rely upon.

When you need assistance with finances, you require a professional who knows how to balance your need for trustworthy advice with his or her need to make a living providing it. This is so true, I’ve been researching adviser options for several years and if you aren’t careful, you can lose a lot through high management fees, front end loads, and transaction fees.

Find a Trustworthy Fiduciary 

A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ interests ahead of their own, with a duty to preserve good faith and trust.  This person must take the time to truly understand your goals and strives to achieve them without churning your account or focusing on certain investments excluding other more advantageous options.

Many suggest using a registered investment adviser because they assume a fiduciary roll and are legally required to put your interests first in the relationship. Yet, I still am personally concerned because you are trusting a third party to manage your assets or at least a good portion of them. It is much harder to recover from a loss after retirement when most are on fixed incomes.

One of the first questions an adviser typically asks is who you are investing for; yourself or your heirs. More risk can be tolerated if you are investing longer term for heirs. Personally, it seems a moot point, I don’t want to lose a significant portion of my investments no matter who I’m investing for even though, long-term, things may, and I reemphasize MAY improve. Once you’ve accumulated a lifetime of savings, I personally don’t want it to diminish significantly.

Unlike many in the private sector, federal employees have a substantial annuity to rely on in retirement. Add to that your TSP Savings, Social Security for all FERS employees and for many CSRS employees. When I first approached an adviser, I informed him that I didn’t need someone to establish a plan for retirement, I was already there and able to live within our means.

What I wanted was to set up an initial relationship with them so that when I’m not able to manage our accounts due to advanced age or death my wife and heirs can rely on them for assistance. I like to take things in baby steps, start small, learn about the new relationship, and then progress from there.

The adviser we first met with reviewed our personal situation and introduced us to an attorney to update our wills and trusts. The first step. They also collected considerable data from us. Personally, I dislike giving out confidential information. Many federal employees, especially those who know they will be financially secure in retirement due to their annuities and other income sources, may be able to limit the information to account summaries and balances. If you need a plan to achieve financial security, then you may have to provide the additional information.

Most advisers request any and all information about every account, loan, asset, insurance policy, annuities, income from all sources, and much more including copies of income tax returns. In turn they offer to prepare a plan describing how, from their perspective, you can achieve financial independence in retirement. These plans are often free of charge and introduce you to the services they can provide to help you achieve your goals.

Basically, they will offer several levels of support from traditional brokerage accounts, portfolio reviews with quarterly updates, asset management, advisory and managed accounts. All come with a cost of course. For example, the fees from one of the firms I contacted included trading fees for the traditional brokerage account, .25% of the account balance annually for quarterly portfolio reviews and recommendations, 1% of the account balance annually for up to $500,000 under their asset management program, 1.25% for advisory and 1.65% for managed accounts. The management fees decrease for larger invested amounts, the more they manage the lower percentage you pay them.

The Bottom Line

I always consider the bottom line; how much is this going to cost me over my current expenditures. Yes, it is going to cost you more in most cases than what you are paying now to trade and manage your accounts personally. That’s not necessarily a bad thing but it is something you have to contend with.

It is always difficult making a decision to pay more. If your results are what your adviser projected and you expect, and you achieve the level of desired services, then the cost will be worth it. Plus, your time is valuable, and it will be freed up to do other things.

Not all brokerage accounts are alike. Fidelity offers many trading options such as trailing stop loss orders, options trading, corporate and government bond purchases, and they offer competitive yielding FDIC insured certificates of deposit if desired. One of the financial planning firm’s brokerage commissions were 1% of the trade value! If you purchased 100 shares of Apple stock at $145 a share the commission would be $145 for that trade!

That is excessive by any standard considering that Fidelity offers zero commissions for stock, ETF and options trades with no minimums to open an account. They also offer zero expense ratio indexed funds! You may want to keep your trading account with your local brokerage firm if you are an active trader. If you don’t trade much, it wouldn’t be a big issue and if you are only transferring stock from one brokerage account to the financial planner’s brokerage house.

Review SEC Reports

If you are considering hiring an adviser, visit the SEC site to check out a brokerage firm, individual broker, investment adviser firm, or individual investment adviser. The SEC and FINRA provide abundant information on advisers and firms that you can use to start your search.

When I was searching for an adviser, I wanted one that could purchase any and all investments for my account not just one family of funds or investment options. Firms that offer limited investment selections may be more interested in selling you a product rather than being a fiduciary and providing sound investment advice.

I also suggest asking the adviser, before sitting down with them, for an updated copy of their Part 2A Form ADV. The Form ADV is used by investment advisers to register with both the Securities and Exchange Commission (SEC) and state securities authorities. The form consists of two parts.

The second part requires investment advisers to prepare narrative brochures written in plain English that contain advisory services offered, the adviser’s fee schedule, disciplinary information, conflicts of interest, and the educational and business background of management and key advisory personnel of the adviser. The brochure is the primary disclosure document that investment advisers provide to their clients.

If you are considering talking to a financial adviser, contact several firms to compare options, costs and services before making a decision. The ADV forms will help you readily compare firms and advisers.

Once you sign up, stay in touch and monitor results to ensure they meet or exceed your expectations. If you start small, as they prove their worth you will feel comfortable expanding their role in managing your finances. It takes considerable due diligence to settle on an adviser. It’s a very personal decision and one that will hopefully make your life easier as they manage your investments in an ever-changing world.

Summary

I explored working with a financial advisor when I wrote the first article on this subject. Even though we didn’t take advantage of their services, we did find a highly competent attorney to draft our wills and joint trust. A must for everyone to avoid probate and confusion when the inevitable happens.

I’m still open to the prospect of eventually working with a financial advisor, for now I’m content with managing our investments myself.

• Retirement Planning Guide
• Looking at the Numbers – The Second Time Around
• Master Retiree Contact List (Important contact numbers and information)
• Current Year Leave & Schedule Excel Chart (FREE Excel chart tracks actual leave balances)
• Survivor’s Guide
• Estate Planning Guide (An 11-part series that will help readers prepare for retirement, understand basic estate planning techniques, and compile their personal “Survivor’s Guide” binder.)

The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and financial information are subject to change. To ensure the accuracy of this information, contact relevant parties and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center. Our article is not intended, nor should it be considered investment advice and our articles and replies are time sensitive. 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, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE

Comments (0)|  Print This Post