I received two OPM claim forms this week verifying the two allotments I set up on-line last week. Thankfully, OPM is very thorough when it comes to managing our retirements. They also publish an informative annual calendar showing each months annuity payment date and the last day in the month that you must submit changes for the allotment to take effect by the next annuity payment. The schedule is available at http://www.opm.gov/retire/html/calendar.asp. I printed out a copy and put it with my retirement papers.

In a previous journal entry dated March 24, I stated that I switched my Thrift Plan mix to the G and C funds and got out of the S and I funds altogether. Looks like that was a smart move so far because the market has dropped considerably since I did this. The S fund has dropped 25 cents a share and the I fund 38 cents a share since I made the change and the C fund has only dropped about 11 cents. Many financial planners advise you to keep your equity (stock) investments limited to your age less 100. For example, I'm 55 so my mix would be 55% in bonds, CDs and cash equivalents and 45%  in equities (stocks or equity mutual funds). I do try to stay close to this mix simply because you never know what may happen to the market and you need ready access to cash in retirement. You may not be able to wait 5, 10 or more years for a full market recovery.  I use my Thrift plan to hold a good percentage of my bond mix because you can't beat the G fund. It has NO market risk and it has averaged a 6% yield since its inception. I also hold some government bond mutual funds in my business 401 (SEP) plan and they do fluctuate up and down, not like the G fund which just keeps going up!.

I subscribed to the Kiplinger's "Retirement Report" last month and received my first report this week. They had a number of informative articles and I especially liked the "Estate Planning Books Guide" on page 12. They recommended "Plan Your Estate" and stated, "it is the most expensive book on our list at $45, but also our favorite. It's comprehensive, up to date and organized to make it easy to find the information you want." I discount this book and sell it for only $29.99 because it is such a valuable resource. You can visit my resource page to check out the various discounted books and software that I offer.

I've been doing loads of back breaking yard work because the weather has been fantastic in Pittsburgh. Haven't been walking because I'm on my feet much of the day getting things ready for summer. I already cut the grass once, put in several new planters, cleaned out the flower beds and added new red mulch, fertilized the lawn and treated it for grubs, cleaned the windows and put in the screens. I also went to the driving range twice to get familiar with my new golf clubs. Now if my back holds up I'm going out this weekend for nine holes with my son.

This is the second week in a row that I've received an allotment notification from OPM. This notice confirms my allotments for my Long Term Care insurance premiums and for the Savings Bond deduction that I signed up for online last week. If you are thinking about signing up for savings bonds the EE Bond program is changing significantly. Starting this May all EE Savings Bonds will earn a fixed interest rate for the life of the bond, unless a different rate or rate structure is announced and applied at the start of the 10 year extension period. In the past the interest rate floated and was adjusted every six months. The fixed rate starting in May will probably be around 4%. The rates will adjust every six months but the rate change only applies to new bond purchases. I Bonds rates will still be calculated the same way, a fixed interest rate and an adjustment every six months based on the inflation rate.

The anticipated 4% EE bond rate is attractive at today's rates but with interest rates on the rise I still like I Bonds. There is an advantage to the EE Bonds from the standpoint that one year CD rates are below this 4% target. You can cash in your bonds after one year with only a 3 month interest penalty. If you hold them for 5 years or more there isn't a penalty. Visit http://www.publicdebt.treas.gov for complete information on the various savings bond programs.

There is one more change coming to the Savings Bond program that you should know about. The Treasury wants to go to a paperless bond program to reduce costs. They intend to keep your bonds in book entry accounts similar to how mutual funds hold your shares. The Treasury does this now through the Treasury Direct program on a voluntary basis. In the future, paper bonds will be phased out. The advantage of having both bond programs available now is that any person can buy up to $30,000 a year in paper bonds and an additional $30,000 in book entry bonds through Treasury Direct.

If you read my previous journal entry you will recall that the older you get the more you should put in cash or equivalent investments like Savings Bonds, CDs, etc. The general consensus is that your cash and equivalent investments should be approximately your age expressed in a percentage. For a person that is age 55, it is recommended that 55% of your assets should be in cash equivalents. As you age you will be taking money out of equities (stocks) and mutual funds and putting more money into cash, CDs and bonds. The savings Bond program allows you to invest up to $60,000 per person per year into EE or I bonds and they are a great place to put funds from cashed in stocks and mutual funds. They are also one of the safest investments you can make.

On a personal note I met a fellow retiree for breakfast this morning and then visited the old office. I had a chance to talk with many of my former associates and enjoyed the short visit. It was a little strange walking through the facility and seeing all of the infrastructure changes since I left in December. I also talked with some of my old friends and associates in our headquarters office in New York. They gave me some great advice on where to stay in New York City when I attend the national Book EXPO 2005 (BEA) this coming June. My books will be featured at the BEA and I'll be signing books at the show.

I've made a number of changes to my federal retirement site - http://federaljobs.net/retire and our Federal Resume and KSA Writing Service was recently expanded. A link to this service is available on our resume and application page at http://federaljobs.net/applyfor.htm. We also offer Quick and Easy Federal Jobs Kit Software that generates the OF-612, SF-171, federal resume, KSAs, and about 15 other forms if you want to automate and simplify the job application process and be ready to bid on the next job announcement that you are interested in.

Well, best get out in the yard. It needs cutting and I still have some yard work to do before I go to the driving rage to work on my short irons. Then I have to stop for a hair cut and of course my daily cup of Starbucks coffee. Wish you all could join me, its such a beautiful day today.

Well, May is right around the corner and It's hard to believe it's been almost 4 full months since I retired. I'm still always on the go and bouncing from one thing to another - and there isn't enough time in a day to get everything done. I started a 120 page, 3 section action item notebook when I retired. It's already about half full. One thing that I'm now more aware of is that work was often a refuge to recover from a fast paced weekend or vacation. Now that I'm working from home, and involved in so many other activities, I've had to find other ways to slow down or rest up from a busy week. I keep telling myself to slow down, but you know how that goes. Something inevitably comes up and you take care of business. This past week I upgraded my FrontPage software to the newer 2003 version, made plans and reservations for the upcoming Book Expo 2005, set up a few vacation dates for the wife and I, plus ran the business from sunup to sunset most days.

I received a form R138-23 from OPM yesterday outlining all of my annuity adjustments. Its the form that looks similar to the pay stubs that I received while working. This should be the last one I'll receive for a while because I don't plan to make any changes soon. You typically only receive a R138-23 when there is a change to your annuity and at the beginning of each year after the COLA adjustment is determined. I received a number of email messages from others who retired December 31st and they still don't have their final annuity determination yet. Not to worry, it can take up to 6 months. A friend of mine retired July 3, 2004 and his first full annuity check didn't arrive until December 1, 2004, 5 full months after leaving. If you don't hear anything soon, call OPM at 1-888-767-6738. I called them a month or so before I received my first full check they advised me that my paperwork was being processed and knew who was processing it.

The latest on Savings Bonds is that it looks like the EE interest in May will go to around 4% and I bonds may go as high a 4.25%. Not bad considering what CDs are paying right now. The stock market has been down for weeks now and I'm sure you are seeing your TSP drop if you are in the stock funds. If you are long term, have 10 or more years to go until retirement, that shouldn't be a concern. However, if you are going to be needing your TSP funds when you retire or opt for an initial lump sum to make a major purchase when you retire, I would be cautious and mostly in the G fund.

Last week I visited a relative that is recuperating from major surgery in a local nursing home. After coming home, my wife and I were thankful we made out our living wills several weeks ago. If you haven't done this yet visit http://federaljobs.net/retire and look over some of the options you have. There are links to free forms as well as WillMaker Plus software that you can buy to complete your wills, living trusts and living wills.

Best close for now, I'm beat after a long day and looking forward to the evening paper and some TV tonight.    

May 5, 2005 

This month I’ll turn 56. Back in my grandparents’ days, 56 was considered old age. Now, with life expectancies in the late 70s - soon early 80s - 56 doesn’t sound so bad. When I retired I helped Jack, an older neighbor of mine, get connected to the internet so he could use e-mail. I got him online and connected in short order. He will be 88 this year and him and his wife have more interests and energy than most half their age. Jack and his wife have maintained that zest for life that many take for granted at our age or others have simply lost. Jack calls me every week or so to ask about Microsoft 98 operating error messages that pop up occasionally on his old system or to quiz me on various internet functions.  

The yard work has been enjoyable this year. Got lots done, this week and last were cool enough that I was able to really get a head start on typical summer chores. I think my neighbors are getting the message that some things have changed at the Damp household. They probably think I’m laid off… I don’t look old enough to be retired!!!!  About the only thing I have to do is trim some beds and plant flowers later this month. I’ve not been walking at the mall or in my plan for that matter. I’m on my feet most days either doing yard work – while most of you are still doing the 9 to 5 routine – working around the house or running errands for my business. I’ve been out golfing once and to the driving range several times. I really want to expand my workout routine and have several books on the subject that I’m now digesting.  

The new savings bond rates were announced this week. The new fixed rate EE bonds are earning 3.5% and the new rate for I bonds is now 4.8% for bonds purchased from May 2005 to October 2005.  You can visit the savings bond site at http://www.publicdebt.treas.gov for more information and purchase options. I’m going to increase my “I Bond” allotment this month.

There is a new TSP web site at http://Mytsp.us  that you may find interesting. It was developed by a fellow federal worker. He uses a unique method to advise others on favorable TSP fund mixes. His goal is to avoid market downturns – fund losses – by shifting to funds that are favored at the time. The site is under construction but functional.   

Nothing new from OPM this week. Things are relatively quit for a change and my wife and I are looking forward to this summers planned outings. I picked up concert tickets this week and last week firmed up our short term vacations plans. That sounds odd, I’m retired… Shouldn’t everyday be a vacation!!!!

I completed lots of things all around this week and am looking forward to a few special projects I have planed. I received my first I Bond from the allotment I initiated last month and since I increased my allotment, next month's bond will be double this one. This week, I updated my "Retirement Analysis" statistics spreadsheet that shows pre and post retirement costs. My estimated retirement costs were pretty close, within 2% of what I originally listed. Actually, all of the adjustments were under entertainment and miscellaneous expenses. I underestimated  these amount. In retirement you are apt to buy other things for the home and eat out more than I originally thought. If you are planning on leaving in the next year or so download the "Retirement Analysis" spreadsheet to complete and see what you will have to live on in retirement.

Its been over four months since I left and it seems like time is flying buy, unlike when I worked and weeks dragged on. It must be tied to perceptions and the fact that when you leave you have control, for the most part, of what your week will be. I did some very mundane, but enjoyable, things this week. I detailed my 1996 Deville over the past three days, about 3 hours each day, and it looks GREAT. I touched it up, even polished the wheels, waxed it twice, and completely cleaned and shined the interior. Always wanted to have the time to do things like that. I also dug out the grass along the side of my home and planted Azalea bushes and put in about a yard of new mulch, patched some of my front sod and of course cut the yard...all in a weeks work.  Now that I'm retired I do enjoy taking a break each day around noon to really read the paper, not just cruse through it at break neck speed. When I worked I would speed read the paper in about 20 minutes.

In an early journal entry I discussed how I was going to cook more. It was a good thought!!! I'm not a good cook and my wife and I really know that now. I suppose I could be but when it's my turn to cook we go out for dinner or I bring it home. It seemed like everything I cooked tasted the same or just didn't come out right. Cooking is a real art and I suppose I'm just not the artist I thought I could be.

Nothing new from OPM so will close for now. Have a great weekend.   

May 21, 2005 

Overall, retirement is easy to take as long as you are emotionally, physically, and financially prepared for it.  Lets look at each issue individually.

Emotionally prepared  - Leaving your 9 to 5 job isn’t easy if you haven’t planned for your departure.  Retirement can be compared to taking an extended vacation - you have to plan it out. Where are you going? How will you get there? Who are you going with, what do you want to do once you get their, and how are you paying for it? Years ago, a friend of mine thought only of leaving and was able to take advantage of an early retirement opportunity. After he left he didn’t know what to do with himself – and his spouse wasn't a happy camper either.  I believe he regretted his decision. You can’t – actually you can – but it is certainly not recommended to leave without knowing what your exit strategy will be. The only way that you will be emotionally ready – after the initial euphoria of leaving wears off – is to plan it out and put your plan down on paper, set goals, and plan to make them happen.  

Some might think that this is overkill and that life is too short to waste time going through these exercises. Shouldn’t you be enjoying the moment and accept things once you get there? I would say yes to this concept if you are going on a short trip, throw caution to the winds, and be spontaneous. Retirement is a lifelong event and can’t be left to whims or chance.

It will also help to prepare a basic estate plan. I know that many reading this may not feel that an estate plan is necessary. Everyone should have a basic estate plan and it isn’t hard to put together! One of the best basic estate planning tools is the book Estate Planning Basics, its very reasonable at $16.99 and you can get through it in less time than it takes to go on a short day trip. When you are done you will be able to easily put together your basic plan. If you require more than basics or have unusual circumstances to deal with I suggest Plan Your Estate along with Quicken® WillMaker Plus 2005 to develop you personal plan. For the majority of readers, Estate Planning Basics is all that you will need. It is very easy to understand and you will have a good handle on not only your personal assets but you and your spouse will know where all of your accounts, investments, insurance policies, pin numbers, safety deposit box keys, and other important information is located.

Physically prepared – Six months before leaving I scheduled a complete physical that included a colonoscopy, stress test, and so on. Everything came out fine and I felt – and thought – that I was not only emotionally ready but physically ready to tackle retirement. If any of you reading this entry know me, you would know that I do tend to go all out with things – very little moderation in how I approach life in general. Retirement can be physically draining if you approach it like I did. My physical came out great and I started an aggressive exercise routine and was on my feet most of the day after being at a desk 5 days a week for many years. Well, I over did it as noted in earlier journal entries. This is an example of poor planning on my part. I didn’t think things through to the degree that I should have and didn’t take into account that my feet would give out on me. I’m just now getting back to where I was and able to tackle the many things I do each day. The best advice I could give you in this area is to be sure to get a thorough physical before you leave and then add additional activities gradually, not all at once like I did.

Financially prepared  – There are many options for federal employees to improve their finances and build a nest egg while working and to continue doing so after you leave if you prepare. Everyone in the federal government – with few exceptions – no mater what pay grade they are, can save for retirement. You have to research your options and by all means take full advantage of the Thrift Savings Plan while working. Financial planning is key if you want to maintain your lifestyle after retirement. You actually want to do more than maintain your life style after leaving. Your goal should be targeted to improving your life style because in retirement you have more time to do the things that you only dreamed about doing while employed. You need funds, and for some activities, lots of money to pursue your dreams, hobbies, and avocations.  The first thing you need to know is what you are living on now and what you will have to live on after you leave. I mentioned this in the last entry and I’m repeating it here because it is fundamental to a successful retirement.  Go to http://federaljobs.net/retire. Look over the many areas that will help you focus on YOUR personal retirement and then and select the Retirement Cost Analysis section. You can download the free Excel Spreadsheet and plug in the numbers to see where you are at now and where you will be when you retire. A sample of this form is filled out in the Retirement Cost Analysis section to help you understand what is needed and how to expand it if necessary for your personal evaluation. You should also factor in other income sources from interest on bonds and Certificates of Deposit, dividends on stocks, capital gains on property and other assets, future or current Social Security income, etc. Look at all the baskets – income sources you have – to see what you will be able to spend in retirement without draining your accounts. 

I'm still saving in retirement and this week OPM sent me a revised annuity withholding notice showing my increased savings bond allotment. I’m taking advantage of the higher I bond interest rates and have a target set for total I Bond savings. Once I reach that target I’ll stop the bond allotment.

On a personal note I decided to put my business on autopilot for several days and the wife and I went to Atlantic City. We stayed at Caesars and enjoyed the trip. One of the advantages of being retired is that you can take trips off peak and save a bundle and it isn’t nearly as crowded. The upgraded rooms were only $75 a night except for Thursday when it went up to $125. On the weekends the rooms go up to $200 and more.

Caesars was very good to me on May 19^th, my 56^th birthday. I hit on the slots for enough to pay for the rooms and most of the trip and I hit a smaller jackpot again on Friday morning before we left. The drive to the coast was relaxing and even the traffic in Philadelphia wasn’t that bad, a total road trip of just under 7 hours each way.

All in all I had a very relaxing week. Now that I'm back home I intend to update my personal estate plan. I normally do this after taxes each year but got side tracked this time around.

Have a great week and if you have any questions about retirement or estate planning that aren't covered on my site send an email to ddamp@aol.com . I enjoy hearing from my visitors and journal readers. Also, if there is a subject that you would like addressed in a future article or posted on http://federaljobs.net/retire let me know.

I received several email messages commenting on last weeks article concerning being prepared for retirement. One of the respondents felt that she was physically and financial prepared but had to work on the emotional part before leaving. She didn't quite know what she would do in retirement. Another person had similar concerns and he was 3 years beyond eligibility but feared he wouldn't have enough to do and didn't want to get under his wife's feet day in and day out.

Early retirement isn't for those who don't prepare for it emotionally. Actually, it isn't wise to leave at any age if you aren't prepared for the change and journey. I prepared many years before leaving by starting new hobbies, fine tuning my home business, completing a comprehensive estate plan, and started reading historical biographies, general history and suspense novels. I joined the Easton Book Club and various business associations that offer additional outlets. I also discussed things with my wife to get a feel for what we expected collectively and worked to meet my wife's expectations as well. When you retire and are in a relationship, your decision dramatically impacts your significant other in ways you may not have imagined. Your partner may have totally different expectations and if you don't take the time to understand them, and work with your partner to meet both parties needs and desires, you may not find yourself on the yellow brick road when you leave.

Before I retired my wife understood that I was merely changing jobs and would continue working. However, I now work from home and can arrange my work schedule so that I'm available for shopping trips, vacations, lunch and dinner dates, and to help out around the house. I took over certain chores that I knew my wife would appreciate giving up and things so far have worked out fine.  As far as hobbies go, I still don't have the time to participate in them to the degree I original thought I would. When I eventually reduce my work schedule I'll spend more time on my hobbies. I now have many more desirable diversions than when I worked full time with the FAA.

I've been asked by several who know me if I would have retired at 55 if I didn't own and operate my publishing business. My answer is unequivocally - YES. I planned for this event and have so many interests and activities that even without my business I would have more than enough to do. There are still days, while working in my business, that I wish I had time to pursue my hobbies, sit down and read a book in the afternoon, or go have coffee with friends at our favorite coffee shop. When I get to that point my schedule is flexible enough that I can and do most of those things if I really wanted to. The beauty of being a federal CSRS retiree is that you have a COLA adjusted annuity, a Thrift savings plan, and if you properly prepared other investment income and resources that you can pretty much do as much or as little as you want in retirement. 

Planning for retirement can actually be fun and exciting. A plan can be as simple as a mental image of what you want to achieve or simply committing to trying new activities or hobbies. You can also explore and review all that you already are doing and evaluate whether or not what you have on your plate will be sufficient for you personally. You don't have to have a formal plan, although I do recommend keeping a journal or action list to keep you focused and on track.

The long and short of it is that retirement is what YOU "make of it," not what just happens when you decide to leave. Visit http://federaljobs.net/retire for additional planning information and guidance. 

I wish you and yours an enjoyable and safe holiday weekend. 

June 5, 2005 

I’m writing this article on an AMTRAK train while returning from the 2005 Book Expo in New York City. I logged more air miles when I worked for the government than most fly in their lifetime so I decided to try old fashioned ground transportation for a change. I also needed quality quiet time to work on upgrading http://federaljobs.net and my retirement site. I’m about an hour out from New York as I write this and approaching Philadelphia. The total trip takes about 9 hours each way from Pittsburgh to New York City. First class AMTRAK compartments are laid out to accommodate business travelers with large comfortable seats, 120 Volt AC outlets for your laptop and cell phone, and they are fairly quiet. It does take some concentration to work on a laptop because of the constant movement and peripheral side views of constantly changing landscape that’s flying by at up to 60 or more miles and hour.  

The train to New York broke down in Philadelphia. We had to change trains and it took about 12 hours total for the trip. I arrived in New York at 6:30 p.m. in the middle of rush hour during a light constant rain. I attempted to take the subway but it was so packed – a mass of humanity – that I turned around and went up to street level to flag a cab. I couldn’t navigate the gates with my luggage and the trains were packed like sardine cans – just as you see in the movies. Much to my dismay I had to wait in the rain – without an umbrella – for an hour and a half to get a cab. I was soaked and feeling a little dejected when I arrived at the Sheraton Manhattan after the long trip.  

Saturday was much better. The sun was out and it was in the low 60s when I took the shuttle to the Jacob Javits convention center. I had my first book signing at 10:30 for the  9^th edition of The Book of U.S. Government Jobs, and the second at 3:30 for the 4^th edition of Post Office Jobs. In between I had numerous meetings with agents, publicists, columnist, sales reps, and distributors.  I volunteered to work the Publishers Marketing Association booth, our trade association, for an hour and networked with many others.     

I did learn a few tricks for any who venture to New York. If you have to flag a cab at a major event or the train station like I was – especially if it’s raining – it’s best to start walking towards your destination. When you get several blocks from the congestion, flag a cab, just stand on the curb and hold your hand up in the air. I went to a publisher’s party after the convention and local New Yorkers keyed me in to this and several other things. For example, for short rides in Manhattan, New Yorkers typically only tip 50 cents to a buck tops. It cost me $6.00 for a cab from Penn Station to 7^th and 51^st, about 17 blocks. Saturday I took a 30 block cab ride for only $5.00.  One other point to consider when you travel is the type of luggage that that you take. I purposely travel light; don’t like to lug things around with my troublesome back. I used a one suit travel bag without wheels. I’m trading this in for anything with wheels. Even though I packed light I picked up a dozen or so signed books at the convention and many neat give-a-ways. My luggage was almost too much to handle and I shed books and stuff as the trip dragged on. Whoever picks up the signed first editions and freebees that at left behind may be surprises to find a signed book in the train station lobby and in my hotel room.

Just arriving in Philadelphia at 11:15, I left New York City at 9:55 a.m. I did locate some additional resources that federal employees and retirees will find helpful. I intend to review them when I return and possibly add them to the resource section on http://federaljobs.net/retire. One in particular, the book Work Less, Live More; The New Way to Retire Early, may be very helpful. I talked with the publisher and will interview the author next week.

I also met with several financial planners that specialize in retirement and they will be resources along with their books for future articles. All in all a good trip. Nothing new from OPM, still enjoying my new life after retirement. More next week.

June 12, 2005

I returned from New York City last Sunday evening and since then I’ve been busy working on various projects. I actually accomplished more work while on the train than I did all this week. I think I’m going to plan more train trips when I’m working on key projects! There are few distractions and you can’t get pulled away for the many other things that are going on day-to-day. You can really concentrate on the matters at hand.

The days seem to fly by in retirement and I can’t believe its Saturday already. This week I received my second I Bond since I started an annuity allotment several months ago. Nothing else new from OPM and things are now pretty much on autopilot with my annuity and retirement in general. I talked with a fellow retiree today and he too was amazed at how much there is to do in retirement and we both wondered how we ever found time to work full time with the FAA.   

I worked on updating our estate plan this week and it always amazes me how much has changed from one year to another.  I review our plans each year to insure that all essential information is captured, add new or revise existing accounts, and insure that any changes to passwords and other information is readily available. It is also a good time to evaluate and adjust your investment mix.  Thankfully, I use WillMaker Plus to update our plans and to draft revisions for our revocable trusts. If you had to do this manually it would take forever. You can also generate an updated net worth statement after you’re done to see where you are at compared to previous years.

Not much else going on this week.

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