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Re: [TSP_Strategy] Leaving Government? What You Need to Know

Re: [TSP_Strategy] Leaving Government? What You Need to Know

 

I'm planning on early retirement and not doing a full career as a USCS employee after I retire from the Military, so being able to get a retirement benefit after working less than 12 years is definitely something that I intend to consider, especially if I can get a nice location overseas. 

On Jul 28, 2017 10:47 PM, "sarah_oz@yahoo.com [TSP_Strategy]" <TSP_Strategy@yahoogroups.com> wrote:
 

Thinking About Getting Out of Government? Here's What You Need to Know

By Tammy Flanagan

July 27, 2017

Lately, it seems like I've been conducting seminars for as many mid-career employees as for those nearing retirement. It's great to see younger workers planning for the future.

One difference with midcareer employees is that many of them aren't planning to complete their careers as federal employees. I always try to point out the value of working long enough to retire and be eligible for lifetime health benefits and the other advantages enjoyed by federal retirees. Still, some employees are going to leave government service before they are eligible for immediate retirement.

If you're in this group, there are some things you should know before you leave.

Deferred Benefits

Under the Federal Employees Retirement System, even if you leave early, you may be entitled to a deferred retirement benefit. To qualify, you must meet the following requirements:

  • Have at least five years of civilian federal service before you resign.
  • Do not elect to receive a refund of your FERS retirement contributions.
  • File for your future retirement benefit as early as your minimum retirement age (55-57, depending on your year of birth) if you had at least 10 years of prior service. The benefit will be reduced for age if you had less than 30 years of service.
  • If you had 20 or more years, then you can file for an unreduced deferred benefit at age 60.
  • If you had less than 10 years, but more than five years, then you can file for the deferred FERS benefit at age 62.
  • When you're ready to apply, you'll need to send an application to the Office of Personnel Management.
  • If you later return to federal service, you can reinstate your prior service and eventually qualify for an immediate retirement benefit.

Insurance

If you separate before you are eligible for an immediate benefit, you'll have limited continuation of your federal insurance benefits.

  • Federal Employees Health Benefits Program: Your health insurance coverage will end 31 days following your separation. Within 30 days of your separation, you can apply for Temporary Continuation of Coverage. It's similar to COBRA in the private sector. You can continue it for 18 months after your resignation. But it's not cheap: Enrollees must pay the employee and the employer share of the premium plus a 2 percent administrative fee.
  • Federal Employees Group Life Insurance: Your coverage will continue for 31 days following your separation at no cost. You may convert to an individual policy within 31  days of your resignation. Since you will no longer be part of the group contract, the premium payments may be much higher than the FEGLI premiums.
  • Federal Long Term Care Insurance Program coverage will continue even if you separate. If you leave the government and are paying premiums by payroll deduction, you will have to make arrangements with Long Term Care Partners to start paying premiums directly or by automatic bank withdrawal from your checking or savings account.

Thrift Savings Plan

You can keep your money invested in the TSP as long as your account balance is $200 or more. Most FERS employees are entitled to keep the automatic 1 percent agency contribution as long as they have completed three years of service. You are immediately vested in (eligible to keep) your contributions, your agency's matching contributions and the earnings in your account.

This allows you to continue to enjoy the TSP's low administrative expenses, move other money into your TSP account from an IRA or eligible employer plan, continue to make interfund transfers, and avoid paying income taxes while your money remains invested. You can leave your money in the TSP until you must start making required minimum withdrawals after age 70 ½.

Social Security

Federal employees under FERS are covered by Social Security and Medicare the same as private sector workers. If you continue to work in a job covered by Social Security and Medicare taxes, you will continue to add to your Social Security record.

Annual and Sick Leave

Federal employees who separate from service receive a lump-sum payment for their unused annual leave. An employee who has a break in service and returns to work for the federal government is entitled to the recredit of his or her sick leave, regardless of the length of the break in service.

Federal employees who resign before they are eligible to retire should be aware that many private sector employers do not offer the kind of defined benefit pension that government employees get. In addition, most private sector employers do not allow retirees to continue their employer health insurance — or if they do, you may have to pay the full premium.

Federal employees who stay in service long enough to qualify for immediate retirement benefits  enjoy lifetime retirement income with cost of living adjustments. Before deciding to resign from federal service prior to becoming eligible for retirement, be sure to consider what you are giving up.

Photo: Flickr user Brendan Riley


By Tammy Flanagan

July 27, 2017

http://www.govexec.com/pay-benefits/retirement-planning/2017/07/thinking-about-getting-out-government-heres-what-you-need-know/139795/

__._,_.___

Posted by: Allen Green <gtwhitegold@gmail.com>
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (2)

Have you tried the highest rated email app?
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
Re: [TSP_Strategy] Re: How the I Fund Differs from the MSCI EAFE Index

Re: [TSP_Strategy] Re: How the I Fund Differs from the MSCI EAFE Index

 

One other difference is that the I Fund doesn't have foreign taxes charged to it on dividends and the MSCI EAFE index has foreign taxes already deducted. 

Any international fund excluding the I Fund is charged taxes by the host country the security is traded in with possibly few exceptions. I.e. Nestle dividends are taxed on the EFA ETF Where they aren't in the I Fund. 

On Jul 29, 2017 12:29 AM, "Jay Stevenson ajayon@msn.com [TSP_Strategy]" <TSP_Strategy@yahoogroups.com> wrote:
 

I entered my shares at TSP Data Center and at the end of the day their amounts match exactly what I have at TSP site. You can pick what date to start your portfolio and see percentage increase for each day. They also email what each fund did daily and weekly. Weekly is Friday thru Thursday. I rarely even go to the TSP site now.

__._,_.___

Posted by: Allen Green <gtwhitegold@gmail.com>
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (4)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] Re: Dark Side of the G Fund

[TSP_Strategy] Re: Dark Side of the G Fund

 

Sarah,
I agree with the math or many of their points.  It is the timing of the article that concerns me.

The SP500 index price to revenues has only been higher in one week since its inception - the week of 24 March 2000.  After reaching this level the last time the TSP G fund continued up 16% while the TSP C fund lost 48% requiring over a 100% gain to break-even.

The SP500 can very well go higher today since the financial markets are being driven by the global central bank liquidity operations and the Bank of Japan and the European Central Bank continue to pour gasoline on the speculative fires.  But there are times to step aside from the markets and allow the lowly TSP G fund will preserve what you have.


Michael
TSPsmart.com

My recent post on valuations and what is driving the markets to extremes:  https://report.tspsmart.com/2017/07/28/into-thin-air/ 


__._,_.___

Posted by: Michael Bond <michaelhbond@yahoo.com>
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (2)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] Fixed Income Sector Performance

[TSP_Strategy] Fixed Income Sector Performance

 

Charts of the Week

Fixed Income Sector Performance (Total Return as of 6/30/17)

Chart of the Week for July 28, 2017 - August 3, 2017

Five of the 11 fixed income sectors posted positive returns for the 1 year period ended June 30, 2017. In contrast, all 11 fixed income sectors posted positive returns in the 1 year period ended June 30, 2016.

The fixed income market includes many different types of securities, and performance can vary substantially among these types. The chart above compares the performance of eleven major fixed income sectors for the 1 year periods ended June 30, 2017 ("current year") and June 30, 2016 ("prior year"). Positive returns occurred in five of the 11 fixed income sectors for the current year. In contrast, all of the 11 sectors produced positive returns in the prior year.

Sector returns were mixed in the current period as U.S. rates rose across all maturities after three increases in the Federal Funds target rate range. High Yield (12.70%) and Emerging Markets (5.57%) were the best performing sectors in the current year, followed by the three Corporate sectors, Long-Term (3.61%), Investment-Grade (2.28%), and Short-Term (1.43%). Tightening interest rate spreads helped corporate bond returns. Emerging Markets returns were helped by strong global demand for higher yielding securities.

The largest negative returns for the current period were Long-Term Government (-6.96%) and Government (-2.18%) as increasing U.S. government interest rates had a negative impact on returns. Global (-2.18%) also posted negative returns as Japan's economy showed signs of improvement and central banks in the Eurozone indicated that coordinated bond-buying programs may be gradually reduced, which caused yields to rise.

Performance fluctuates over time and is hard to predict. Changes in both actual and expected interest and inflation rates can materially impact fixed income investments. Also, investors should note that even U.S. Government securities can decline in value and investing in sectors such as High Yield or Emerging Markets involve additional risk.

When making investment decisions, prudent investors should invest based on their own circumstances taking into consideration their goals, investment experience, time horizon, and risk tolerance.


__._,_.___

Posted by: sarah_oz@yahoo.com
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (36)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] Leaving Government? What You Need to Know

[TSP_Strategy] Leaving Government? What You Need to Know

 

Thinking About Getting Out of Government? Here's What You Need to Know

July 27, 2017

Lately, it seems like I've been conducting seminars for as many mid-career employees as for those nearing retirement. It's great to see younger workers planning for the future.

One difference with midcareer employees is that many of them aren't planning to complete their careers as federal employees. I always try to point out the value of working long enough to retire and be eligible for lifetime health benefits and the other advantages enjoyed by federal retirees. Still, some employees are going to leave government service before they are eligible for immediate retirement.

If you're in this group, there are some things you should know before you leave.

Deferred Benefits

Under the Federal Employees Retirement System, even if you leave early, you may be entitled to a deferred retirement benefit. To qualify, you must meet the following requirements:

  • Have at least five years of civilian federal service before you resign.
  • Do not elect to receive a refund of your FERS retirement contributions.
  • File for your future retirement benefit as early as your minimum retirement age (55-57, depending on your year of birth) if you had at least 10 years of prior service. The benefit will be reduced for age if you had less than 30 years of service.
  • If you had 20 or more years, then you can file for an unreduced deferred benefit at age 60.
  • If you had less than 10 years, but more than five years, then you can file for the deferred FERS benefit at age 62.
  • When you're ready to apply, you'll need to send an application to the Office of Personnel Management.
  • If you later return to federal service, you can reinstate your prior service and eventually qualify for an immediate retirement benefit.

Insurance

If you separate before you are eligible for an immediate benefit, you'll have limited continuation of your federal insurance benefits.

  • Federal Employees Health Benefits Program: Your health insurance coverage will end 31 days following your separation. Within 30 days of your separation, you can apply for Temporary Continuation of Coverage. It's similar to COBRA in the private sector. You can continue it for 18 months after your resignation. But it's not cheap: Enrollees must pay the employee and the employer share of the premium plus a 2 percent administrative fee.
  • Federal Employees Group Life Insurance: Your coverage will continue for 31 days following your separation at no cost. You may convert to an individual policy within 31  days of your resignation. Since you will no longer be part of the group contract, the premium payments may be much higher than the FEGLI premiums.
  • Federal Long Term Care Insurance Program coverage will continue even if you separate. If you leave the government and are paying premiums by payroll deduction, you will have to make arrangements with Long Term Care Partners to start paying premiums directly or by automatic bank withdrawal from your checking or savings account.

Thrift Savings Plan

You can keep your money invested in the TSP as long as your account balance is $200 or more. Most FERS employees are entitled to keep the automatic 1 percent agency contribution as long as they have completed three years of service. You are immediately vested in (eligible to keep) your contributions, your agency's matching contributions and the earnings in your account.

This allows you to continue to enjoy the TSP's low administrative expenses, move other money into your TSP account from an IRA or eligible employer plan, continue to make interfund transfers, and avoid paying income taxes while your money remains invested. You can leave your money in the TSP until you must start making required minimum withdrawals after age 70 ½.

Social Security

Federal employees under FERS are covered by Social Security and Medicare the same as private sector workers. If you continue to work in a job covered by Social Security and Medicare taxes, you will continue to add to your Social Security record.

Annual and Sick Leave

Federal employees who separate from service receive a lump-sum payment for their unused annual leave. An employee who has a break in service and returns to work for the federal government is entitled to the recredit of his or her sick leave, regardless of the length of the break in service.

Federal employees who resign before they are eligible to retire should be aware that many private sector employers do not offer the kind of defined benefit pension that government employees get. In addition, most private sector employers do not allow retirees to continue their employer health insurance — or if they do, you may have to pay the full premium.

Federal employees who stay in service long enough to qualify for immediate retirement benefits  enjoy lifetime retirement income with cost of living adjustments. Before deciding to resign from federal service prior to becoming eligible for retirement, be sure to consider what you are giving up.

Photo: Flickr user Brendan Riley


July 27, 2017

http://www.govexec.com/pay-benefits/retirement-planning/2017/07/thinking-about-getting-out-government-heres-what-you-need-know/139795/

__._,_.___

Posted by: sarah_oz@yahoo.com
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (1)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] Re: How the I Fund Differs from the MSCI EAFE Index

[TSP_Strategy] Re: How the I Fund Differs from the MSCI EAFE Index

 

I entered my shares at TSP Data Center and at the end of the day their amounts match exactly what I have at TSP site. You can pick what date to start your portfolio and see percentage increase for each day. They also email what each fund did daily and weekly. Weekly is Friday thru Thursday. I rarely even go to the TSP site now.

__._,_.___

Posted by: Jay Stevenson <ajayon@msn.com>
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (3)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] F fund close

[TSP_Strategy] F fund close

 

When is the day rate for the F fund determined, 3pm or 4pm?

__._,_.___

Posted by: seventythreepalms@yahoo.com
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (1)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] Re: How the I Fund Differs from the MSCI EAFE Index

[TSP_Strategy] Re: How the I Fund Differs from the MSCI EAFE Index

 

Thanks Sarah and others!  So, perhaps the best way to look at this is for daily trend and direction, look at EFA.  However, do not expect that the closing change in % of EFA to match the TSP I fund % change for a given day.  

__._,_.___

Posted by: timedtrade@gmail.com
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (2)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
[TSP_Strategy] How the I Fund Differs from the MSCI EAFE Index

[TSP_Strategy] How the I Fund Differs from the MSCI EAFE Index

 

The I fund will never exactly match the EFA every day for two reasons:

1. The EFA does not include interest and dividends.  The I fund adds interest and dividends on a daily basis.
2. Fair Value Pricing

Fair Value Pricing

On some days, the percentage change in the I Fund share price reported by the TSP can be significantly different from the percentage change reported for the MSCI EAFE (Europe, Australasia, Far East) Index, which the I Fund tracks. These differences usually occur when the investment manager finds it necessary to reprice its EAFE Equity Index Fund, in which the TSP invests, to reflect changes occurring after the close of the foreign markets.

This process, known as "fair valuation" or "fair value pricing", occurs when there are U.S. market or currency movements between the time the foreign markets close and 4:00 p.m., Eastern time, when the EAFE Equity Index Fund share prices are determined.

For example, the Far East markets close at 3:00 a.m., Eastern time. If there is a major event afterwards - whether a natural disaster or even a major U.S. market swing that affects the pricing of the stocks in the EAFE Equity Index Fund - without fair value pricing, that event's impact on share pricing would be ignored. That is, the price information from the foreign markets can become "stale", or out of date, by the close of the U.S. markets at 4:00 p.m., Eastern time - a full 13 hours later. On such a day, absent fair value pricing, market timers could buy the I Fund and sell their holdings on the following day in order to benefit from the "stale" pricing. They would accomplish this transaction at the expense of other investors in the fund.

Fair value pricing ensures that traders do not benefit from trading on stale prices. It prevents traders from using events that may have occurred between the close of the foreign market and the close of the U.S. market, which may have affected EAFE Index Fund prices, to achieve an unfair trading and profit advantage at the expense of long-term shareholders.

__._,_.___

Posted by: sarah_oz@yahoo.com
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (1)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___
Re: [TSP_Strategy] I fund ticker?

Re: [TSP_Strategy] I fund ticker?

 



VEA Vanguard FTSE Developed Markets ETF is another one that some look at for the I fund.

On Jul 27, 2017, at 10:59 AM, "Mike VanAmburgh mjv325@gmail.com [TSP_Strategy]" <TSP_Strategy@yahoogroups.com> wrote:
 

Yes understood, but the point of having an index to view is to see how the fund is doing before close. ​We can't do that with the TSP Funds themselves which is the purpose of this discussion - to find an index that might be more in line with the I Fund than EFA has been. It's nice to look at once in a while before the market closes.

Mike


On Thu, Jul 27, 2017 at 9:25 AM, Art Jeyes artjeyes@gmail.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
 

EFA like all ETFs changes during the day, I am pretty sure the I fund value, like a mutual fund is set once per day, after market close.

Sent from my iPad

On Jul 27, 2017, at 9:30 AM, Mike VanAmburgh mjv325@gmail.com [TSP_Strategy] < TSP_Strategy@yahoogroups.com> wrote:

 

That site is always great for viewing history but do you know of an index to look at throughout the day (besides EFA that most of us already use)?​



On Thu, Jul 27, 2017 at 7:33 AM, robert winfield winfield100@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
 

Go to this page. Look at bottom of page.

See 4 boxes of graphs
They are F, C, S, I
Click the bottom right one to expand.
Note: it tracks I fund and has a string of letters at the top
http://tspcenter.com/tspReturns.php


 

I can't seem to find the ticker that completely matches the I fund.  EAFE and IEE seem close, but not exact.  Does anyone have the answer to this?

Thanks



__._,_.___

Posted by: OhBea Juan <ohbeajuan@gmail.com>
Reply via web post Reply to sender Reply to group Start a New Topic Messages in this topic (13)

Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

.

__,_._,___