What Is the Purpose of the I Fund and How Much Should You Invest in it?

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What Is the Purpose of the I Fund and How Much Should You Invest in it?

By Carol Schmidlin

The objective of the I Fund is to match the performance of the MSCI EAFE (Europe, Australasia, Far East) Index. The earnings consist of gains (or losses) in the price of stocks, dividend income, and change in the relative value of currencies.

This was proposed in 2017 and put on hold for several years. TSP is now considering this again. As you can see the MSCI EAFE is limited and is not a true representation of the international index. This is scheduled to go into effect this year!

If you are not sure how much to contribute you can either choose a lifecycle fund the coincides with your retirement date. I also highly encourage you to visit www.MyTSPVision.com and do a risk analysis. This is a great website run by Brad Kasper.

Also, please feel free to contact me at 856-401-1101 or email me at carol@franklinplanning.com.

Source: www.TSP.gov

 

 

 

 

 

 

 

 

FERS Hits the Big 4-0: Has it Been That Long?

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FERS Hits the Big 4-0: Has it Been That Long? 

Today, FERS accounts for all but several percent of the federal workforce. It also probably accounts for the majority of retirees today. 

Since its beginning, the Federal Employees Retirement System has been known as the “new” system, in comparison with the “old” Civil Service Retirement System. Click HERE to find out more.

 

How Some People Escape The Steep Medicare Surcharge on Premiums Known as IRMAA

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How Some People Escape The Steep Medicare Surcharge on Premiums Known as IRMAA

“Our federal health benefit program started in 1960 and Medicare didn’t start until 1965, so we always had lifetime coverage as federal retirees,” explained Tammy Flanagan, principal of the Retire Federal consulting firm in Bradenton, Fla. “The majority of federal retiree still don’t have to take Medicare.” Click HERE to read more.

 

 

TSP Account Averages Now About The Same As Before Declines Of 2022

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TSP Account Averages Now About The Same As Before Declines Of 2022

Strong gains in the stock-based TSP funds in 2023 pushed the average account for federal employees and retirees back to roughly the levels before the losses of 2022, with the average $175,700 for those under FERS and $197,300 for those under CSRS at year-end 2023, according to figures released at the January meeting of the TSP governing board. Click HERE to read more.

New Year, New Benefit Changes

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Some 2024 changes that may benefit federal employees and retirees.

It’s a new year and there are new benefit amounts that take effect at the beginning of each year as well as basic pay adjustments for federal workers under the General Schedule and cost of living adjustments for retirees. For most feds, there are changes in the premiums paid for Federal Employees Health Benefits. For retirees who are working after retirement, there are also new earnings limits applied to their FERS Special Retirement Supplement and Social Security benefits. Click HERE to find out more.