The Fed just hiked interest rates by 0.75% for the 4th straight time

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The Fed just hiked interest rates by 0.75% for the 4th straight time — escalating fears of a global recession. But here’s why soon-to-be retirees shouldn’t panic

The Fed just hiked interest rates by 0.75% for the 4th straight time — escalating fears of a global recession. But here’s why soon-to-be retirees shouldn’t panic

The Fed just announced its sixth rate hike this year — and some economists predict future increases will take the key rate to over 5%, triggering a recession in 2023.

The federal funds rate has already jumped three percentage points since March, with the newest 0.75% raise closing in on a range of 3.75 to 4%.

It’s becoming more expensive to borrow even as stubborn inflation keeps prices high, and Americans are feeling the strain on their retirement savings.

In fact, four in 10 older Americans are delaying retirement in the midst of challenging economic conditions, according to the Nationwide Retirement Institute — double those who were pushing back retirement last year.

Click HERE to read more.

October Returns a Treat for TSP Stock Fund Investors

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All three stock-based TSP funds posted strong gains in October, led by the small company stock S fund, up 8.59 percent and followed by an 8.1 percent gain in the large company stock C fund and a 5.98 percent gain in the international stock I fund.

Despite the gains, those funds still are down year-to-date by 23.83, 17.7 and 22.9 percent, respectively; for the last 12 months they are down 27.24, 14.61 and 22.74 percent.

The bond F fund dropped 1.26 percent in October, for a year-to-date loss of 15.38 percent and a 12-month loss of 15.4 percent. The always-gaining G fund rose 0.34 percent in the month and is up 2.29 percent for the year and 2.55 percent over the last 12 months.
Click HERE to read more.

How Not to Lose Your FEHB in Retirement

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Federal employees can lose FEHB coverage in retirement unless they meet certain criteria.
Yep, you heard right. Not everyone can keep FEHB (your federal health insurance) into retirement.

Eligibility to Keep FEHB Into Retirement
There are two big criteria that you have to meet to keep FEHB into retirement. You must:
• Retire with an immediate retirement
• For traditional FERS, this includes retiring with at least:
• 30 years of service at your MRA (minimum retirement age)
• Or 20 years of service at age 60
• Or 5 Years of service at age 62
• Or 10 years of service at your MRA (MRA+10 Retirement)
• You also need to have been covered by FEHB continuously for the 5 years before retirement.

What If Spouse is Also a Federal Employee?
If your spouse is also a federal employee, then it doesn’t matter who is officially carrying the FEHB plan as long as you are covered under FEHB for the 5 years before retirement.

For example, let’s say you and your spouse are feds and you are the one that has a Self+One plan that covers both you and your spouse. As long as your spouse retires with an immediate retirement then they’d be able to keep FEHB into retirement on their own record if they wanted.

But…

But where people get into trouble is when they choose to be on a spouse’s health insurance who is not a federal employee. In this situation you will just want to make sure you jump back on FEHB at least 5 years before retirement.

What if I’m on Tricare? Exception to the 5 Year Rule
Those on Tricare have an exception to the 5 year rule. If you have Tricare then that can fulfill the 5 year requirement as long as you are covered under FEHB on the day you retire.

For example, let’s say you have Tricare for the 5 years before retirement but you also jump into FEHB in the last year of retirement. In this case you’d be eligible to keep FEHB into retirement because your Tricare fulfilled the 5 year rule and you had FEHB at retirement time.

Leaving FEHB for Your Spouse
So now that you’ve successfully retired and taken FEHB with you, the next thing you want to make sure is that your spouse can continue FEHB even after you kick the bucket.

The one big requirement is that you elect a survivor benefit on your pension for your spouse. So no survivor benefit, no FEHB for your spouse, at least after you pass.

The survivor benefit is chosen (or not chosen) on your retirement application.

Here are the 3 survivor benefit options, and as long as you pick one of the first two then you and your spouse are good to go.
1. Full Survivor Benefits: It costs you 10% of your pension and your spouse is left with 50% of your pension if you pass first
2. Partial Survivor Benefits: It costs you 5% of your pension and your spouse is left with 25% of your pension if you pass first
3. No Survivor Benefits: It costs you nothing and your pension goes away when you pass.

Citation: FedSmith: October 27, 2022 10:26 AM

Your TSP Account – What to Think About When Nearing Retirement or Considering Leaving the Government

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The U.S. Securities and Exchange Commission (SEC) and the Federal Retirement Thrift Investment Board present “Your TSP Account – What to Think About When Nearing Retirement or Considering Leaving the Government”: https://www.sec.gov/video/live/tsp-sec-federal-employees-considering-retirement-2022.htm

This program was produced during World Investor Week and is intended for federal employees and members of the uniformed services, and is designed for those who may be considering retiring or leaving federal service.

The program covers the Thrift Savings Plan (TSP) re-design, including enhancements to investing options like the new mutual fund window, distribution options, withdrawals and rollouts. Discussion also covers investment risk and fees, the common red flags of investment fraud, how to check out a financial professional and questions to ask when thinking about moving funds from the TSP.

How to Attend
Click this link: https://www.sec.gov/video/live/tsp-sec-federal-employees-considering-retirement-2022.htm

There is no need to register for the webcast.
For More Information
________________________________________
Address all substantive TSP and investment questions to the sources below:
• For questions about your TSP retirement, please go to the TSP website or call the TSP’s ThriftLine at 877-968-3778 to speak to a TSP expert.
•
• For investment-related questions, go to Investor.gov or call the SEC’s investor assistance line at 800-732-0330 or email Help@SEC.gov.
•
• For webcast questions or other technical problems, email Webmaster@sec.gov.
•
• If you have questions about the program not addressed above, please contact Outreach@SEC.gov.
•
• For more information on World Investor Week, see the SEC’s World Investor Week page.
•
Troubleshooting
• See our troubleshooting checklist to resolve video and audio problems.

Big Changes in Your Savings Plan Have Taken Effect

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ecent changes in the Thrift Savings Plan give savers more investment options, more electronic tools and easier access to their accounts.
Here’s what you need to know:

In addition to the traditional TSP funds, there’s a new mutual fund window that offers thousands of mutual fund choices.
But there are costs:

• $55 annual fee
• $95 annual maintenance fee
• $28.75 fee per trade
• Any additional fees and expenses that the individual mutual fund may have.

That adds up to at least $179 a year, if you make just one trade a year. These fees apply just to the new mutual fund window and are being imposed to avoid indirectly increasing costs for TSP participants who don’t use the mutual fund window, according to the Federal Retirement Thrift Investment Board, which administers the plan. The costs for TSP funds have traditionally been lower than most other investment programs.

This Coast Guardsman became a millionaire with his Thrift Savings Plan

If you choose to invest through the mutual fund window, your initial investment must be at least $10,000, and you can’t invest more than 25% of your total account in the mutual fund window.

That means you must have at least $40,000 in your TSP account. That may be at the nine or 10 year mark of service for enlisted members who are contributing 5%; and for officers, maybe at year six, according to JJ Montanaro, a certified financial planner who is relationship director on the Military Affairs team at USAA. Click HERE to read more.