eNews

Finance for Singles

By: Kaitlin Yardley, CFP®

Published: September, 2021

Have you ever thought of handling your personal finances like any other household chore? It’s always best to follow a schedule before the tasks get out of control. The laundry pile is a little less daunting if you attend to it every week and the bathroom is certainly more pleasing if you can get to the scum before it grows. While it is helpful to divvy up household chores – someone cooks and the other clean up – if you are single, all of the chores fall in your lap. Delegating the cleaning duties to an outside service, when possible, can be a great solution. However, when it comes to finances, this is your job. You, and only you, will reap the reward of a job well done or pay the price of missteps. Here are some tips for staying on top of your personal finances, even when you can’t share the job.

Making the Decision About WHEN to Retire

By: Michael Townshend

Published: August 2021

Many of our readers in the Federal workforce, have shared with us their concerns about retiring, even though they may have confidence in their financial preparations. So, what is it that they fear about the prospect of retirement? For many, it is the simple question, “What in the world will I DO with myself and my newly found free time?”

The Final Stretch: The Secure Act is Coming for Your Retirement Beneficiaries

By: Anne Sullivan, Esquire

Published: July 2021

When was the last time you checked your TSP or IRA beneficiary designations? If you haven’t lately, or even if you have, please go back and review them now against the Secure Act. Never heard of the Secure Act? Let me explain.

In December 2019, Congress enacted the Secure Act to encourage Americans to save more in their retirement accounts. While the law ushered in several changes to stimulate retirement savings, it also dramatically changed the distribution rules for TSPs, IRAs, and other income tax-deferred accounts. The law applied immediately to IRAs but delayed implementation for the TSP until December 30, 2021.

Postponed or Deferred Retirement: What’s the Difference and What Are My Options?

By: Bob Braunstein, Federal Benefits Specialist

Published: June 2021

When the Federal Employees Retirement System (FERS) was introduced as the alternative to the original Civil Service Retirement System (CSRS) in the mid-1980s, it was touted as a more flexible and portable program – which, in fact, it is. Instead of a pension-only retirement plan that required staying in Federal service for almost 42 years to gain the maximum entitlement, FERS offers the following flexibilities:

A pension with a personal early retirement option; CSRS early retirements require special circumstances,
Social Security (SS) coverage for the same years of service; CSRS is not covered by SS, and
Thrift Savings Plan with agency matching; CSRS employees do not get agency matching on their TSP contributions.

Thinking About Medicare?

Published: May 2021

By: Maureen Wilkin, Federal Benefits Specialist

If you are or soon will be age 65, it is time to consider enrolling in Medicare. Enrollment is voluntary. Your opportunities to enroll are limited. You should plan on spending about as much time to make this decision as you would to choose a cable provider or streaming service. Well, maybe not that much time!

Enrollment may be done online. You can find complete information regarding Parts A, B, C, and D and also enroll at: https://www.ssa.gov/benefits/medicare/.

You have three opportunities to enroll:

Initial opportunity = 7 month window around 65th birthday
Special opportunity = 8 month period that starts when health insurance coverage becomes retirement based AND you are 65
General enrollment = January – March each year; becomes effective in July (when payment begins) Possible late penalty for delaying Part B enrollment – a permanent penalty.

Top 5 Money Concepts to Master

By: Karen Schaeffer, CFP®

Published: April 2021

In honor of Financial Literacy Month, here are the top five money concepts financial planners think everyone can and should master:

1. Managing and analyzing cash flow. How much money is coming in and where the heck is it going? Now is a great time to compile the numbers from 2020 and calculate a couple data points: What percentage of your income went to taxes? How much did you save or invest? And, since the rest got spent, determine how much went to your fixed expenses and how much of your spending was discretionary. Happy with your choices? Congratulations. Not so much? Make a list of small positive changes that you can implement in 2021. Spend less on one particular item, bring in a little more income from a side gig, round up what goes into TSP each pay period by $50; you get the idea.

Use Your Federal Benefits to Reduce Your Tax Bill

By: Tom O’Rourke

Published: March 2021

Paying the least amount of taxes possible and staying out of trouble with the IRS are common goals. The Federal benefits package helps Federal employees achieve both of these goals.

Federal employees are eligible to participate in the Thrift Savings Plan, the Federal Flexible Spending Account (FSA), and the Dependent Care Assistance Plan (DCFSA). They may also pay any health insurance premiums on a pre-tax basis and, if they are enrolled in a high deductible health insurance program, to set aside funds on a pre-tax basis in a Health Savings Account (HSA).

Financial Planning at Every Stage of Your Career

By: Brian Kurrus, CFP®

Published: February 2021

Whether you are just starting out or getting ready to retire, it’s never too early or late for financial planning. Many wish they started planning earlier and those that did sometime wish they had made better adjustments along the way. Here are the most important steps at every career stage.

What’s New for Federal Employees and Retirees in 2021?

By: Bob Braunstein, Federal Benefits Specialist

Published: January 2021

The year 2021 holds some interesting changes for Federal employees and retirees. The changes include new health, dental and vision plans, a health care flexible spending account rollover increase, and the possibility of continuing certain cost-saving exceptions for these programs under the “Corona Aid Relief and Security Act (CARES)”. Active employees will be afforded a new way to elect their TSP contributions, also known as “Spillover.”

Updating Your Health Directive to Address Coronavirus Concerns

By: Tom O’Rourke

Published: December 2020

Concerns about the coronavirus have caused individuals to review their estate plans “just in case”. A common concern is to make sure you have a plan in place to allow somebody you love and trust to act on your behalf with respect to your medical care if you contract the virus. You can do this by implementing a health care directive.