TSP Mutual Fund Window – Key Dates

/in /by

Service Provider Transition Cutover Dates & Deadlines
As a reminder, the consequences of not following the provided requirements and deadlines will result in your inability to interact with the new TSP environment. This may lead to breakage, additional administrative burden, financial burden, and disruptions to your current interaction with the TSP.

Cutover Dates & Deadlines for Agencies/Services:
• May 24th, 2022: Final day agency/service payroll files can be submitted to the TSP and final day for agencies/services to use the TSP Data Submission Application (DSUB) to submit a payroll file and/or journal voucher.

• May 25th, 2022, through the first week of June: Blackout period in which agency/service personnel will have read-only access to the legacy TSP DSUB system and no access to the new Agency Portal. Files submitted via secure connection to the new Agency Portal during this time will be accepted and processed the first week of June.

• First week of June: Authorized agency/service personnel gain access to the new Agency Portal. Agency/service payroll files can be reviewed and submitted via the new Agency Portal. Agencies/services will continue to have read-only access to the legacy TSP DSUB system through 6/10/2022.

Other Cutover Dates & Deadlines:
• May 16th, 2022, through the first week of June: Some key transactions will be temporarily unavailable (e.g., investment transactions; loan requests; withdrawals and distributions).

• May 26th,2022 through the first week of June: All transactions and services are temporarily unavailable, including My Account and ThriftLine.

AGE MY WAY IN MAY

/in /by

May is a month to celebrate the older Americans in our country and honor their lives and the accomplishments they still have ahead of them.

Older Americans Month was established in 1963 by President John F. Kennedy to bring awareness to the types of programs and support older Americans need to succeed. The Administration of Community Living sets a theme for Older Americans Month every year. This year’s theme is “Age My Way.” Community support, participation, and accessibility are essential for people of all ages, especially for older Americans.

If you identify as an older American, we have some tips to help you take care of your mind, body, and finances:

• Stay Active: Physical activity is important for people of all ages, but it’s vital for older Americans. If you don’t have complete mobility, you     may still want to add some gentle physical activity to your routine.

• Grow Your Community: Socialization helps keep your mind sharp as you age but making new friends can seem daunting. If you have a passion, it’s likely that someone else shares that passion, too.

• Refresh Your Estate Strategy: As you age and life continues to change, it’s a good idea to revisit your estate strategy to make certain it still reflects your goals. Now’s a great time to have those conversations with your family members to make sure everyone knows what your wishes are.

The FED Approves Half Point Interest Rate Rise 

/in /by

The FED Approves Half Point Interest Rate Rise 

The Federal Reserve approved a rare half-percentage-point interest rate increase and announced plans to shrink its $9 trillion asset portfolio starting next month in a double-barreled effort to reduce inflation that is running at a four-decade high. 

The moves, announced after a two-day policy meeting Wednesday, will raise the central bank’s benchmark federal-funds rate to a target range between 0.75% and 1%.

 Together, the steps mark the most aggressive Fed tightening of monetary policy at one meeting in decades, aimed at rapidly reducing the economic stimulus that has contributed to rising price pressures. The Fed, which usually lifts interest rates in quarter-percentage-point increments, last raised rates by a half point in 2000.

The rate-setting Federal Open Market Committee approved the decision unanimously. In a statement, the committee said it “anticipates that ongoing increases in the target range will be appropriate,” setting the stage for another large rate rise at the Fed’s meeting next month.

The statement cited the potential for Covid-related disruptions in China to sow further chaos to global supply chains that could keep inflation elevated. “The Committee is highly attentive to inflation risks,” it said.

Fed officials also finalized plans to start shrinking their mammoth holdings of Treasury and mortgage securities passively–that is, by allowing bonds to mature without reinvesting the proceeds into new securities rather than by selling them in the open market.

Follow link to read more. https://on.wsj.com/3LPTSWV

Nearly All of the TSP Funds Continued Their 2022 Tumble in April

/in /by

Nearly All of the TSP Funds Continued Their 2022 Tumble in April, only the government securities (G) fund finished last month in the black.

In another turbulent month for investments, nearly every fund in the federal government’s 401(k)-style retirement savings program lost value in April.

The small- and mid-size businesses of the Thrift Savings Plan’s S Fund saw the worst performance, falling 10.57%. So far this year, the S Fund sits at 18.83% in the red. And the common stocks of the C Fund fell 8.72% last month, bringing its 2022 losses to 12.91%.

The I Fund, which is made up of international investments, lost 6.39% in April, bringing its performance this year down to -12.73%. And the fixed income bonds in the F Fund fell 3.75% last month. So far this year, the F Fund has lost 9.33%.

Only the government securities of the G Fund finished April in the black, gaining 0.20%. So far this year, the G Fund has grown 0.65%.
Likewise, all of the TSP’s lifecycle (L) funds, which shift to more stable investments as participants get closer to retirement, lost money last month. The L Income Fund, designed for those who already have begun making withdrawals, fell 2.04%; L 2025, 3.59%; L 2030, 5.12%; L 2035, 5.63%; L 2040, 6.12%; L 2045, 6.56%; L 2050, 6.97%; L 2055, 8.11%; L 2060, 8.11%; and L 2065, 8.11%.

So far this year, the L Income Fund has lost 3.32%; L 2025, 6.04%; L 2030, 8.58%; L 2035, 9.48%; L 2040, 10.33%; L 2045, 11.10%; L 2050, 11.80%; L 2055, 13.56%; L 2060, 13.56%; and L 2065, 13.57%.

Citation: Government Executive, Author Erich Wagner May 2, 2022

Inflation Creeping into Personal Finances

/in /by

If you have a balance on a credit card or an adjustable-rate mortgage, you might be noticing changes in your payments. Higher interest rates are starting to ripple through the personal finance landscape, and it doesn’t look like that trend will change anytime soon.

The Federal Reserve has indicated it plans to keep raising short-term interest rates to help manage inflation, which is at its highest level in 40 years. You’re likely seeing the effects of inflation when buying gas or groceries, and you’ll notice it if you are shopping for a new or used car.

The Federal Reserve’s job is to control inflation. By raising interest rates, the Fed hopes to slow spending, bringing down consumer prices.

Time will tell whether higher interest rates will prompt us to consider changes to your portfolio. Remember, your overall strategy considers that there will be transition periods in the economy.

In the meantime, you may want to look at I Bonds, which are issued by the U.S. government and earn a fixed interest rate plus a variable interest inflation rate that’s adjusted twice a year. I Bonds have certain purchase limits, restrictions, and tax treatments, so they generally play a limited role in your financial picture.

If you have any questions about inflation or interest rates, please reach out. We’re always here to help put things into perspective.