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FEDERAL EMPLOYEE'S
RETIREMENT PLANNING GUIDE
The Author's
Personal Post-Retirement Journal (4)
From 8/18/05 through 10/26/2005
The following journal runs
from August 18, 2005 through September 28, 2005. Click
current journal entries to return to the most
recent entry.
You may have the same
questions or concerns and hopefully these entries will help you prepare for
your retirement. Visit the retirement planning to get answers to many of your retirement questions. Parts of this journal may relate to
your personal situation. If you would like to comment on a journal entry,
this site in general, or to let us know what other areas you would like
covered, send an e-mail to ddamp@aol.com.
You will find other articles of mine online at Monster.com.
PREPARATION is
the key to a successful retirement and this site is
devoted to guiding you through the federal
retirement maze and includes information on benefits, general retirement
issues, and easy-to-use estate planning techniques. It was designed to help you think
about the entire picture and not just your annuity and when you can leave.
There is considerably more to retirement than meets the eye and this site
will help you focus on the critical issues that we all must address at this
time in our lives.
Readers should seek professional advice
concerning their retirement and benefits and for all other areas that require
professional clarification and guidance. The author is not a benefits specialist
or financial planner and is only relaying his personal thoughts and ideas in
this forum. Readers are strongly cautioned to consult
with a professional before using any information
contained in this forum. No forum can substitute for professional retirement
benefits and planning, investment, or medical
advice. Caution is urged when using the information
contained in the articles that are posted on this site. The authors and
publisher are not engaged in rendering retirement planning, benefits,
investment, or medical advice or services. If you have a retirement planning,
benefits, investment problem or medical concern, you should consult with a qualified
professional in that area. Accordingly, the authors and publisher expressly
disclaim any liability, loss, damage, or injury caused by the contents
posted on this forum.
Click
here to go to the latest entry
August 18, 2005
I decided to hold
off on Myth # 3 until I can thoroughly disprove the premise. Myth #
three was going to be titled “Can retirement be too much of a good
thing.” Having fun in retirement is subjective and can be an elusive
concept for a workaholic like myself. However, strange as it may seem, I
enjoy working at home and the benefits of federal retirement. About the
only derogatory thing I can come up with is that too much fun can be
hazardous to your health.
I was talking with a
friend this week whose single parent was concerned about protecting her
assets. His parent has the majority of her assets in checking or savings
accounts and Certificates of Deposit. The easiest way to handle this and
avoid probate is for the parent to designate those accounts “in trust
for” their children or others with the financial institution. It is very
easy to do and takes no time at all. Just go to your bank and change the
account registration to “Your Name” in trust for “Person # 1, Person #
2, etc.” You must also designate the percentage each will receive. If
you leave out a percentage the money will be divided equally between all
that are listed in the trust account. The original owner retains full
ownership and rights to do what they desire with the money. The only
time the trust is activated is when the party dies and then the trust is
divided as specified between all of those mentioned in the trust
statement. When her CDs mature she should consider designating them in
trust for those whom she wants to inherit her assets. You can also
establish a “revocable living trust” however they are formal documents
and need to be carefully prepared with the aid of WillMaker Plus
software or an attorney in accordance with state laws. The best guide
for these types of issues is “Plan Your Estate.” It offers guidance on
estate issues and it explains them in everyday language. I keep a copy
of this book along with “The Executor’s Guide” on my reference shelf.
Another valuable tool is “WillMaker Plus.” This software allows
you to draft professional wills, living trusts, health directives, and
much more. We only have 3 copies of WillMaker Plus in stock and we
reduced the price from $79 to $39.95 while supplies last.
On a personal note,
my week was packed with activities. Some work related and others various
works in progress. I finalized plans for several small home remodeling
projects and I will say that being home has saved me money on several
occasions. For example, I ordered a storm door this week and when the
contractor came to measure the door he increased the installation cost
by $70. I told him to hold off until I checked a few things out at Home
Depot. I originally thought that installation was fixed at $119. I was
wrong about the fixed installation costs. However, the door was now on
sale and reduced from $199 to $159, a $40 savings. I asked Home Depot to
discount the door on my original order which they did and then proceeded
to checkout. Here is where I ran into problems. They charge $25 to have
a contactors come to your home to measure the door. You get the $25 off
the full cost of the project if you agree to get the work done. Well,
when I went to check out they reduced the cost by $40 but didn’t take
off the $25 that I paid in advance for the measurement. It took me an
hour to get this resolved with the store manager. I believe that if I
was still working full time I could have possibly overlooked the new
sale price and the $25 charge back error.
Several weeks ago I
ordered DSL and I’m finally hooked up with high speed internet at home.
It took me almost 2 days to get everything configured, including
installation of 802/11g wireless cards and I hard wired my main
computer through the Ethernet port. The only reason it took so long was
that I wanted to make sure I had all of the security issued resolved
before activating my wireless modem. All in all I’m very satisfied with
Verizon’s DSL service. Their tech support was excellent and their self
installation kit was easy to install. High speed is like night and day
over my old dial-up service. I elected to keep AOL for my main online
portal and AOL reduced my monthly costs to $14.95 a month with unlimited
access for all seven screen names. I could have used the free MSNBC
service that Verizon DSL offers; however, I really like all of the
security features that you get free with AOL including spy ware,
computer checkup / repair, and free MacAfee virus protection. You have
to pay for much of this separately from other providers.
More to come next
week.
Dennis V. Damp,
Retired FAA
August 25, 2005
WEP, Can Make You Weep!
The Social Security’s Windfall Elimination Provision
I
received several calls and email messages this week concerning Social
Security issues for retired feds. Prior to retiring I researched social
security’s impact on my total retirement income. I didn’t take most of
it to heart since I was 55 at the time and a good stretch from
collecting.
If
you accrued 40 quarters (10 years) of employment where social security
payments were withheld you are eligible for benefits. Your Primary
Insurance Amount (PIA) which is simply your Social
Security payment will be impacted. The Windfall Elimination
Provision (WEP) can significantly reduce your Social Security
payout. Many federal employees have held other jobs before, during, and
after retirement including feds who served active military and/or
Reserve and National Guard duty where earnings were subject to Social
Security. If you aren’t sure if you are eligible you need to contact
Social Security at 1-800-772-1213 or visit their excellent web site at
www.socialsecurity.gov to request a history of your Social Security
payment and status.
This provision reduces your Social Security benefits if you have less
than 30 years of what is called “substantial” coverage and earned
a CSRS federal retirement benefit. Substantial earnings equaled $2,250
dollars in 1972 and $16,725 in 2005. A complete list of substantial
years is included on the Social Security web site. A WEP calculator is
available at
http://www.socialsecurity.gov/retire2/anyPiaWepjs04.htm. You may not
see this link if you received this article from a forwarded email
message. You can either go direct to my online journal at
http://federaljob.net/retire/journal.htm to link to the calculator or cut
and paste the URL into your browser window.
If
you receive a relatively low pension, you are protected. “Your Social
Security reduced benefit cannot be more than one-half of that part of
your pension based on your earnings after 1956 from which Social
Security taxes were not deducted.”
I
used the WEP calculator listed above and my Social Security payout was
only reduced by $188. My reduction is so low because I’ll have 25+ years
of substantial Social Security earnings by the time I actually stop
working and really retire.
On
a personal note I discovered a number of ways to make retirement work
better for me personally. When you leave your 9 to 5 job you can manage
your time and activities to your advantage. I built a new home 4 years
ago and like everything in life, as things age they need attention –
except for me of course, as I age it’s pure perfection!!! With a new
house you at least have guarantees that many overlook. For example, I
upgraded my front entrance door lock set to a solid brass two piece unit
that was guaranteed to keep its luster for 10 years. Fortunately, I kept
all of the paperwork and product warranties and the company, without
question, sent me a new lock set that was considerably better than the
original. Many of my neighbor’s upgraded locksets look like they have
been around since the turn of the century and mine shines like new.
Another issue that was bugging my wife and I was that our upgraded oak
kitchen and bathroom cabinet’s finish was deteriorating under the sinks.
We had about 8 panels that needed attention. I called the local cabinet
maker that installed our units and at first they wanted to sell me touch
up stain and lacquer to refinish the panels. After talking with the main
office they issued a service order and they are coming to the house to
refinish all defective panels. It pays to speak up. I was prepared to do
the work myself and wasn’t looking forward to it and it shouldn’t need
to be done after four short years.
If
you would like information on a specific subject or have knowledge that
you would like me to impart don’t hesitate to call or email. I really
enjoy hearing from my readers and site visitors. If you want to follow
the journal online you can access the site at
http://federaljobs.net/retire. Just click on the retirement menu selection.
Until next week.
Dennis Damp, Retired FAA
August 31, 2005
The devastation in the
Gulf
Coast
is simply unbelievable. I was in the Air Force, stationed at Keesler Air
Force base, in Biloxi Mississippi when Hurricane Camille obliterated
much of that area in 1969. The entire base, about 70,000 active military
personnel, spent almost three weeks providing emergency assistance and
cleanup. I vividly remember the storm and aftermath. The furry of the
storm can’t be relayed in conventional words. When you are hunkered
down, buildings falling apart around you, rain falling from the ceiling
as if the ceiling wasn’t there, you witness cars, trees, and about
anything imaginable blowing by you and you can’t move - much less think
about what will come next. It was frightening to say the least. We were
stranded on the base for almost three days before relief reached us and
we subsisted on whatever we had stashed in our lockers and barracks.
Living in the North until that time, I never imagined the magnitude of
these storms and the awesome power they yield. I just heard on the news
that 90% of Keesler Air Force base was destroyed and that the Air Force
was evacuating the hospital patients to other installations.
Prior to Camille’s arrival the
Gulf
Coast
was beautiful, as it appeared to be before Katrina hit this week. I
wrote my fiancé to tell her about the sites to see and the magnificent
ocean views. When I brought my new bride to Biloxi in November of 1969
it was pretty much a waste land as it is today and both of us remember
the mountains of debris and devastation at every turn. My wife and I
lived off base in Biloxi and the street we lived on was decimated in
this storm. I don’t recall Camille impacting New Orleans to any major
degree and when we went to the Mardi Gra the following year there was
little evidence of major damage.
You never know what life will throw at you. Retirees and those
anticipating retirement have to prepare the best they can. Yet, there
are those things in life - like Katrina - that you simply can’t prepare
enough for like. Even those who evacuated long before the storm surge
breached the levies never anticipated being unable to return to their
homes for months and maybe NEVER able to return. Who can prepare for
that! All we can do is prepare for what we think may happen and hope the
impossible never materializes.
Our prayers are with all of Katrina’s victims.
September 8, 2005
Who’s On First (Katrina) and Exceptional Savings Opportunities by Dennis
V. Damp
Let’s start out with “Who’s on First.” I’ll get to the
opportunities shortly – so stayed tuned. They are worth waiting for.
Last week’s article focused on hurricane Katrina’s devastation. I and my
wife were transfixed to the news stations trying to comprehend the
magnitude of this disaster and no matter what station we turned to we
were astonished that the Red Cross wasn’t anywhere to be found in the
city of New Orleans – Nowhere! We immediately sent a contribution to the
Red Cross the day the disaster hit and had hoped relief would have
surely reached the besieged city and especially the Super Dome by then.
Yet, three days after the disaster ALL news services were
reporting live from the city and many reporters stated - in disbelief -
that the Red Cross was nowhere to be found! A Fox News reporter was
interviewing a Red Cross spokes person last night who admitted they were
ready to go into New Orleans two days after Katrina hit the coast. The
Red Cross spokes person stated that they were repeatedly denied access
to the city by the head of the Louisiana State Department of Homeland
Security and the Governor’s office. Red Cross confirmed that they had
sufficient water, food, and medical supplies for the city and were
prepared to provide relief at the Super Dome and in accessible areas.
The Red Cross representative stated that the State of
Louisiana
wanted to evacuate the Super Dome and did not want to encourage others
to go to the Super Dome and would not let them in for that reason!!! I
listened in disbelief. This was not reported on ABC, CBS, NBC, CNN or
any of the other channels that day or since to my knowledge. I then
visited the Red Cross site to see if this fact was mentioned and it was
listed on the following page. Click on the announcement link or cut and
paste it into your web browser.
http://www.redcross.org/faq/0,1096,0_682_4524,00.html.
All I’ve heard from the media is astonishment that NO relief was
available. The Red Cross confirmed on live TV that they had sufficient
relief supplies and staff to manage the relief effort at the Super Dome
BUT WERE DENIED ACCESS by the State. Prior to learning this I was
questioning whether or not we gave to the right organization and maybe I
should have sent our contribution elsewhere. In my mind, I still
questioned why things happened the way they did and the longer this goes
on the more I’m convinced that the State and local city government
neglected to implement their own emergency plans and instead of
providing coordinated leadership they were major impediments to the
relief effort. Can you believe that the Governor and City Mayor are
still fighting and can’t agree on whether or not to enforce a full
evacuation of the city? I also read that the New Orleans mayor is
sending his city police officers on a sabbatical with city funds to Las
Vegas for R&R!!! Now I’ve heard everything, while the destitute, poor,
and infirm of this once grand city are housed in evacuation centers his
officers, who many abandoned their posts during the disaster, are being
rewarded with R&Rs!!! This is just too much for me to comprehend and I
believe that the Governor of this state and the mayor of
New Orleans should both be impeached and thrown out of office. I would
prefer putting them in jail, and as Paul Harvey says – That’s the rest
of the story folks…..
Now let’s talk about a few opportunities that you may wish to take
advantage of. They are good for anyone but especially helpful to
retiree’s who are living on fixed incomes.
Savings
Bonds (I Bonds)
Looks like rates are continuing to rise and if you are thinking of
purchasing more I bonds, and have the funds available, I would put those
funds in a money market account for now. Savings Bond rates are adjusted
twice a year, May 1st and November 1st. Many
believe that the total yield for I Bonds, currently 4.8%, will increase
to over 5%, maybe as high as 5.25% this coming November. It makes sense
to hold off for a few months to take advantage of the higher yield.
Entertainment Book
Available
Many metropolitan areas sponsor the annual Entertainment Book discount
program. You save as much as 50% off dinning, local attractions, travel
and hotels, and retail services. They publish an Entertainment Book in
46 states, Puerto Rico and
Europe. You can visit their site at
www.entertainment.com or call 1-866-592-5991 to see if they offer a
book in your area. If you order on line you save $10 and the book only
costs $25. My family buys one book and we split the coupons. The book is
at least 300 pages full of opportunities. My son and I use the golf
discounts and each week we play a different course and only pay one
green fee. The entire family splits the hundreds of dinning coupons
where you buy one dinner for a set price and get a second free. The
discount book is a good way to explore and travel in your area and
discover new attractions and dinning opportunities at a discount.
National Cell Phone Do
Not call Registry
(Submitted by reader TS)
This is a
reminder that in a few weeks, all wireless phone numbers are being
released to telemarketing companies and you will start to receive sales
calls which you will be charged for! To prevent this, call the
following number from your cell phone: 888-382-1222 - the National DO
NOT CALL list. It only takes a minute and will block your number for
five years. OR you can go to the website https://www.donotcall.gov/default.aspx
Once you
have registered, your phone number registration will be effective for 5
years. It will be illegal for most telemarketers to call you, and you
will be able to file a complaint if a telemarketer does call you. The
website www.donotcall.gov provides information about filing complaints.
More to
follow newt week.
Dennis V.
Damp, Retired FAA
http://federaljobs.net
September 14, 2005
It’s been eight and a half months since I retired last December. If you
have been following my weekly journal you are aware of what I
experienced throughout the journey. If you are a new visitor you can
review my entire journal at
http://federaljobs.net/retire/journal.htm. Overall, I have to say that OPM
does an exceptional job administering the federal retirement program. I
received my lump sum leave payment exactly 6 weeks after leaving, like
clock work my check is deposited on the 1st of each month
into my checking account, my benefits are intact, and I elected several
allotments without a hitch. OPM’s retirement assistance center is easy
to use, they answer your questions timely, and you can actually talk to
a real person when you call even if you have to wait a few minutes on
hold.
The hard part of retirement isn’t taking the plunge and leaving, its
living life to the fullest after you leave. To have a meaningful,
prosperous, and enjoyable retirement you have to plan the event
financially, emotionally, and physically well in advance, put your life
in order, and have a good sense of what you will do after you leave. If
you ignore any of these issues you may find retirement a somewhat
difficult transition and a disappointment. That’s why I developed my
federal retirement site at
http://federaljobs.net/retire/. I wasn’t able to find the tools I
needed to effectively plan my retirement 5 years ago so I spent several
years researching all facets of retirement, developing helpful tools,
and then published this web site to help others through the process.
Everyone has to have a purpose in life throughout all life stages.
Retirement is no exception. I wouldn’t have retired at age 55 had I not
had other endeavors to keep me active and engaged such as this weekly
column, writing, my web sites, and publishing. Others focus on volunteer
work, interesting hobbies, church involvement, travel, leisure
activities such as golfing or other pursuits. The important thing is
that you do something that is worthwhile to you no matter what that may
be.
If
you are curious to find out where you are at financially and what you
will have to live on in retirement use the free downloadable spreadsheet
that I posted on
http://federaljobs.net/retire/retirecosts.htm. You will find an example
filled out that will guide you through the process. You will also find a
retirement annuity calculator on this site and we provide a survivors
checklist that you may wish to print out for your spouse.
On
other subjects, last weeks column mentioned the new “Do-Not-Call” cell
phone national registration program. I did a little research on the
subject this week and discovered that Verizon Wireless isn’t releasing
their cell phone numbers. Verizon wireless phone users apparently don’t
need to sign up for the “Do-Not-Call” program.
I
read an article recently about identify theft suggesting that we are
asked – often without justification - to provide our social security
number for many day-to-day transactions. Basically the article
recommended asking businesses requesting your SSN why they need it and
what they would use it for. Too often, when asked we automatically give
up this valuable information without just cause. I was at a casino
recently and they asked if I wanted to sign up for a “Members Card.”
Apparently, you receive cash back and incentives based on the amount you
spend on the slots. When I asked them why they needed my SSN and what
they were going to use it for they replied that if I win a large sum of
many they have to take out taxes. I told them that I would give them my
SSN if and when I was lucky enough to win a large sum of money. I got
the member card without divulging my SSN and unfortunately I never had
to give it to them. Often, I get asked for my SSN when dealing with
financial institutions and others. I only give them the last 4 digits
and then ask them to confirm that I am who I am with other data they
have on file. Overall, I rarely give out my complete number using these
techniques.
That’s all for this week.
Dennis V. Damp (Retired FAA)
http://federaljobs.net
September 22, 2005
FEGLI Considerations at Retirement and
Medicare Impact at Age 65
I
was contacted by a soon to be retired Fed that will turn 55 shortly. He
wrote concerning Option B’s Additional Optional Insurance Multiples
and the need to continue his Family Coverage. His Option “B”
coverage will increase by $50 per pay to maintain multiples at age 55.
Since he plans to leave January 3rd he wanted to know if he
should cancel the multiples now or when he leaves. He also questioned
why he maintained his family coverage so long since his children are
young adults and out of the house.
When I
retired at age 55 I dropped Option B coverage and elected to keep the
basic option with 75% reduction. Fortunately, shortly after getting
married many years ago, I purchased whole life insurance policies for me
and my wife that are considerably less expensive than maintaining
multiples through the FEGLI program. I also signed up for the
government’s Home Care insurance program prior to retiring and felt that
it was a better investment than maintaining additional life insurance
coverage. For more on Home Care insurance visit
http://federaljobs.net/retire/benefits.htm. Maintaining Option B multiples
in retirement is expensive and your decision to keep this coverage depends
on your personal situation. Typically, if you have dependents that will
need the funds, such as a handicapped child or spouse or younger
children that will need support through college, it may be beneficial to
keep the multiples if you don’t have other coverage. At age 55 you have
to pay 67.2 cents per month for each $1,000 of coverage. If you retired
earning $60,000 a year and maintained the full 5 multiples equaling
$300,000, your monthly cost would be .672 times 300 or $201.60 per month
for this additional coverage. At age 60 it would increase to $1.517 per
thousand dollars of coverage and in this case would cost you $470.27 per
month.
Family
coverage (C Option) is a slightly different issue. It depends if you
have other coverage for your spouse and eligible minor children or if
you have a handicapped child living at home. If you don’t have other
coverage you may wish to keep the coverage with "NO" reduction - an
election option. I don't believe many Feds elected multiple Family
optional insurance. I dropped my family coverage years ago when my last
child reached age 18 because I had other life insurance for my spouse
and children. Another factor to consider - if you don’t have other
family insurance coverage - is the consequences of electing "FULL Family
Reduction - Option C" on your SF-2818 when you retire. The insurance is
free once you reach age 65; however it reduces to ZERO for your spouse
over the next 50 months after you reach age 65. If you elect “No
Reduction” the insurance can be expensive costing $3.14 per
thousand at age 60 – 64 and increasing every five years up to age 70.
The top current rate is $7.37 per thousand at age 70 and above. For
more information on the FEGLI program visit
http://federaljobs.net/retire/benefits.htm.
Steve, a
good friend and former working associate, called this week. He is
turning 65 soon and received notification from both Medicare and OPM
about his upcoming health plan benefits changes. The good news is that
OPM advised him that he no longer has to pay any of the office visits or
procedure co pays associated with his government health insurance plan
since he is signing up for Medicare A and B. I asked Steve if it was
still advantageous to keep his federal health insurance and he said that
he was keeping his coverage after researching other available gap
insurance programs. He stated that most of the private sector insurance
programs that fill the gap for what Medicare doesn’t pay are more
expensive than his current government Blue Cross coverage and have far
less benefits.
On a
personal note, I had breakfast with a fellow retiree and then stopped by
the office, my last duty station with Uncle Sam, to visit this week. I
spent several hours at work and enjoyed catching up with everyone.
Several of the guys are retiring soon and planning their exit strategy.
I assured them that life after the FAA is all that it is cracked up to
be and more if they plan properly. I also got out to the golf course
several times over the past week or so and my game is improving. I’ve
been concentrating on my swing and just relaxing while on the course and
it is paying off with lower scores.
Best close
for now. Our prayers are with all of those who are in the path of the
new hurricane approaching
Texas
and the Golf coast.
Dennis Damp
Retired FAA
ddamp@aol.com
September 28, 2005
It's been a very good week, lots getting
done and I'm making significant progress updating
http://federaljobs.net and especially this
retirement site. I should be uploading the new retirement site shortly. It has a
totally new updated format and it will be a stand alone site, a sub site of
http://federaljobs.net that will give it
more functionality. The new retirement site is being expanded to include a
comprehensive FAQ page, auto submission comments for my weekly journal articles,
and an improved site navigation system with an extensive site map. I've been
working on these two site updates since May 29th and I'm looking forward to
getting this done.
Joe wrote me concerning several issues.
First and foremost, he was advised by OPM that it is now taking between 4 to 6
months for retirement paperwork to be processed and finalized. He retired on
July 3rd of this year. I heard this from several others as well. There was
apparently a large number of retirements this year and OPM must be working to
get through the backlog. If you are planning on retiring soon be sure to get
your paper work in as early as possible, and at least two months before you
leave so that your annuity won't be delayed. Joe also mentioned that he was
surprised that Uncle Sam took so much out of his lump sum leave payment. Count
on getting about 66% of what your total payout will be. I actually received
about 68% of my total leave payment. The rest went for taxes.
This year the "Sperling's
Best Places for Seniors" study listed Pittsburgh as the 4th best place
nationwide. Portland, Oregon was rated the number 1 best place for seniors.
Pittsburgh does offer much for retirees. The PA state lottery income, about $800
million a year, is dedicated to senior citizen PACE and PACENET prescription
drug programs, property tax relief, senior citizen center funding, and free
public transportation. I believe Pennsylvania is the only state that devotes
100% of their lottery earning to senior citizens. Pittsburgh is also know
nationally for its excellent health care system and we have a large and active
cultural district, top notch museums, and much more. On top of all this the
state doesn't tax retirement income.
Many approaching retirement look for
greener pastures to relocate to ─ even if its only on a part time basis. Even
though my wife enjoy our home town we are looking for a quiet get-away. The only
problem with Pittsburgh is that it's fairly far from the coast and many of the
highly desirable escapes we all hear about. I would prefer a home away from home
that is only a few hours away so that you can get there often enough to make it
worth while owning. Recently, we took a short trip to lake Erie and enjoyed the
trip. We hadn't been to Erie for a number of years and were surprised at how
clean it was and we actually enjoyed the trip more than our last trip to the
ocean. The nice thing about lake Erie is that is only about 2 hours from
Pittsburgh. I would imagine that if one looks long enough there are many great
places to escape to not far from home.
October 6, 2005
The L Fund DVD, Health Care
Awareness, and a New Web Site by Dennis Damp
Health
Care Awareness
There are
many ways to improve your health before and after retirement if you take the
time to explore the options. Prevention is one of the key factors to improving
quality of life. Prevention includes daily exercise, knowing what your
limitations are, taking medications as prescribed, going for annual check ups,
and being aware of emergency measures such as CPR and the symptoms of strokes
and heart attacks.
A friend
forwarded me an e-mail message concerning how to recognize a stroke and what
measures to take to help the stroke victim.
RECOGNIZE A STROKE - IMMEDIATE ACTION
REQUIRED
Neurologists suggest that if a stroke victim gets to the emergency room within 3
hours of the onset of the attack the stroke victim has an excellent chance of a
full recovery. The problem is that many who suffer a stroke shrug off the
initial systems and mistake them for other things.
If you
suspect that someone is having a stroke ask that person (or yourself) these
three simple questions:
1)
Ask them to smile.
2)
Ask her/him to raise both arms.
3)
Ask them to say a simple sentence
coherently.
Example: It is raining today.
This test
was presented at the American Stroke Association’s annual meeting last February.
Basically, the research team that devised this simple procedure concluded that
anyone can identify facial muscle and arm weakness, and speech problems. If
someone that you ask to perform these three simple tasks fails any of the
three tasks DON’T HESITATATE.
CALL 911 Immediately
and describe the symptoms to the operator.
A
cardiologist stated one life could be saved out of every ten people who read
this information. I suggest that you print out this simple test and share it
with your family members. Also, forward this message to you e-mail list.
It could save a friend or family members life. I have this test on my frig door.
Thrift
Plan L Fund DVD
By now
most feds should have received the Thrift Savings Plan DVD that introduces the
new L Funds option. These new Life Cycle funds are based on predetermined time
horizons based on when you will need your money in retirement. They are
professionally managed and the mix of funds, the amount of G,F,C,S, and I funds,
that you own are automatically shifted to a more conservative fund mixes as the
target year approaches. The current funds are L Income, L 2010, L2020, L 2030,
and L2040. The DVD is very informative and will play on your TV or computer DVD
player. It has a short 10 minute introduction and then you can step through a
FAQ and other informative sections. If you read my earlier journal entries on
the Thrift Plan you know that about 5 months ago I switched my Thrift account to
100% G fund because I was concerned about the impact of higher oil prices on the
overall economy. I use my Thrift Plan more for my cash equivalent investments.
Also, the G-Fund is the only fund that is guaranteed never to go down in value
and with the market fluctuations of the past several months it is nice going
online and seeing my account fully intact and going up.
I intend
to take half of my account and place it in one of the L funds to track its
performance over time. I’m not sure if I’ll go with the L 2010 or L 2020 yet. I
don’t intend taking any funds out of my Thrift Plan for at least another 10
years. By taking half of my G Fund out and placing it in one of the L funds I’ll
be able to tell exactly what growth the L fund has in relation to my G fund
holdings and I’ll report the changes in my journal entries once a month. This
would have been harder to track if I still was working because of the additional
bi-weekly contributions. Now that I’m retired no additional contributions are
being made to the plan so I’ll have hard figures to work with and compare. I’m
curious to see how the L Funds perform over time.
Launched
http://federaljobs.net/retire - Retirement Planning Site
The new
and expanded federal employee retirement site is now a standalone web site and
sub site of
http://federaljobs.net. I uploaded the new
retirement benefits web site last weekend and will run both the old and new
sites simultaneously until I get the all of the bugs worked out. Late next week
I'll launch the new federaljobs.net site as well. It has a similar layout and
format.
I know you are all
very busy and I do appreciate your critical review of the site, its format,
functionality, and usefulness. If you see errors, omissions, or would like
additional information posted let me know and I'll make the changes. The links
follow. You may have to cut and paste the links into your browser.
Original site;
http://federaljobs.net/retire.htm
New upgraded
retirement site:
http://federaljobs.net/retire
You can email your
comments to me at
ddamp@aol.com or call 412-494-6926.
Thanks in advance
and I’ll see you all again next week.
Dennis V. Damp
Retired FAA
October 13, 2005
Bird Flu Precautions, Lost
and Wondering, & Web Site Live
by Dennis
Damp
If you have been paying attention lately you
have seen at least one article or news story on the potential for a Bird Flu
pandemic. Many commentaries equate this potential outbreak to the 1918 flu
pandemic that killed over 40 million worldwide. The fact is that your typical
flu shot may not be sufficient since each year the powers to be select several
flu strains that are assumed to be prevalent this flu season. There are some
options for you to consider especially if you are in a high risk category. You
can ask your doctor to prescribe "Tamiflu" which if taken within
the first two days of the onset of symptoms can dramatically reduce the severity
of the attack. Some experts actually believe that Tamiflu would be a
better defense for the bird flu virus than the typical flu shot, however, others
contradict this. Prevention magazine had an interesting article on effective
homeopathic flu remedies that hold promise. They state that, "Juice from this
plant's berries has long been used to ease flu symptoms, colds, and sinus
infections." Prevention suggests that taking 3 teaspoons of elderberry
extract four times a day for 5 days will show condition improvements in as
little as four days. You can read the entire article located at
http://www.prevention.com/article/0,5778,s1-1-52-125-5862-1,00.html?. I
ordered a bottle from http://drugstore.com
today. Its better to be safe than sorry and if a flu pandemic does break out in
this county these products will be hard to come by. A friend's prescription for
Tamiflu is dated to expire on 11/2009 so he will have it until then if
needed for an emergency.
This site -
http://federaljobs.net/retire - will
soon be hosting a weekly health awareness column that you will find helpful and
it is a natural for this site. You have to be healthy to enjoy retirement and
the articles will address many issues like the one above and include updated
information on various supplements and their benefits. I'll be announcing the
columnist's name shortly and he will accept questions on-line that he will reply
to directly and feature those comments in subsequent articles. More to come as
this develops.
I don't know if you get as upset as I do
watching TV these days. Until I retired, I had little time to watch TV and
mostly caught the late night news. Now that I retired from federal service I'm
now working only 40 hours a week or so in my business and I do enjoy a few shows
like Lost, Antique Road Show, and Boston Legal. I was watching Lost last night
and I truly got lost, not in the plot, but in the 8 to 10 commercials that they
featured every 3 to 5 minutes throughout the hour long program. I would bet that
more than half of the program was commercial..... after commercial..... after
commercial. I recall back in the 1970s my wife and I complained about a half
hour show having as many as 6 or so commercials. Now that's the norm every 5
minutes or so. I find it very difficult getting into the plot now. It's like
trying to read a book while watching TV. You just can't do it. If the stations
continue doing this they are going to loose lots of viewers to cable. I'm one
they lost on LOST.
OK, it's here and you've been waiting with
baited breath for this premiere. Yes, it's LIVE on
http://federaljob.net/retire. If it
were only Saturday Night Live I'd get lots more attention. I spent the last 4
and a half months designed two new companion sites and the retirement planning
site is the first out of the gate. I would like to thank all of you who were
kind enough to critique the new site and send your suggestions and comments. I
made all of the suggested changes this week and your comments and help were much
appreciated and added considerably to the site's functionality and content. I'll
be slowly phasing out the original site and when I publish the upgraded Federal
Career Center only the new retirement
planning site will be live and online. Check out the new site and let me
know if it meets with your approval. The new site includes a comprehensive FAQ
tied to my journal and site content, various suggestion and comment submission
forms for visitors, and more updated information, new format, and additional
content.
Stay healthy and see you all next week.
Dennis V. Damp
Retired FAA
October 20, 2005
Your Last Day,
the Rule of 72, and my L Fund Decision
A number
of Feds are preparing to retire soon, possibly by the end of the year. I
received an email message this week from a reader who wanted to know when to
turn in their clearance record, security termination forms, and personal items.
I turned mine in December 22, 2005,
about a week before I left due to the holidays. Not many managers were around.
My journal entry of 12/22/05 located at
http://federaljobs.net/retire/preretirement_journal.htm describes the event.
After turning in my ID, I had to get a temporary employee ID from the guards
each day until I officially left and on my last say I left my key in the desk
drawer after coordinating this with my replacement. It’s important that you turn
in your clearance record and have it sent to the region as soon as possible,
otherwise they will hold up your lump sum leave payment and last pay check.
When it
comes to investing its good to know the basic concepts including the “Rule of
72,” an easy way to calculate how many years it will take to double your
investment at any interest rate. With interest rates going up, you need to know
the triggers that you can use to bump up your savings over time. To find out how
many years it will take to double your money, divide 72 by the interest rate. A
5% rate will double your money every 14.4 years, a 15% rate will double your
money every 4.8 years. Interest rates have been historically very low.
What
will you do with your long term CDs that you locked up at 3% or less?
It will
take you 24 years to double you money at 3%, 72 divided by 3% equals 24; only
14.4 years at 5; and approximately 10 years at 7%. Right now long term CD
interest rates are approaching 5% and higher. Typically, it makes sense to cash
out your lower interest CDs and pay the penalty when interest rates go up 2% or
more. Let’s say that 18 months ago you purchased a 5 year CD at 3% for $10,000.
You are earning $300 a year on this CD not counting compounding and at 5% you
could earn $500 a year on this same investment. If your bank charges a 6 month
interest penalty you would loose $150 dollars in interest when you bump it up.
However, over the next 3.5 years you would make $700 more on your new higher
interest bearing investment. A good deal for all concerned.
I stated
in a precious article that I intended to switch half of my TSP account to one of
the L Funds. This will allow me to track exactly how much each fund has grown
monthly and report the results in my journal. I’ll also add a fund tracking page
for those interested in following this closer. My goal is to verify to myself -
and my journal readers - the actual gain of both funds in comparison to the
starting point. This week, I decided on the L 2020 fund currently invested in
27% G Fund, 8% F Fund, 34% C Fund, 19% S Fund, and 19% I Fund. To view the TSP’s
L 2020 fund mix over time visit
http://tsp.gov/lifecycle/flash/index2020.html. I don’t intend taking money
out of my Thrift Plan until I’m 70½ and am required to start taking
withdrawals. I’ll switch
the first of January, 2006
so that I can validate the TSP’s annual reported figures.
End of
year is coming up fast for those planning to retire. Check out my FAQ on the
subject, “What should I be doing the year before I
retire?” located at
http://federaljobs.net/retire/FAQ.htm. I was recently asked why I
include the actual URL link in my articles. I discovered that the articles that
are forwarded by email drop the hyperlinks. Those who receive my journal entries
via email will have to cut and paste the URL in their internet browsers to go to
the referenced sites.
More to
come next week.
Dennis V.
Damp, Retired FAA
October 26, 2005
The Beat Goes On & Taxes on
Your Annuity
by Dennis Damp
Remember
the song from the sixties titled “The Beat Goes ON” by the Mamas and the Pappas.
Just can’t get that tune out of my head this week. I suffer from arrhythmia,
commonly referred to as Atrial Fibrillation or just A-Fib. Basically, your heart
beats too fast and irregularly at times which can cause a stroke. My attacks are
mostly at night and for years I kept them under control through diet, two
aspirins a day, and exercise.
Since
retiring, I dramatically increased my physical activities and when I first
retired my blood pressure was 120 over 80, and my resting heart rate ranged
between 70 and 75. After 10 months of retirement and exercise my weight has
dropped over 10 pounds and my blood pressure is typically 110 over 68 with a
resting heart rate of 60 to 65. However, it appeared that the more I exercised
the worse my arrhythmia became and I was having a hard time sleeping. I
couldn’t determine what was triggering the attacks.
One of the
known triggers for this condition is caffeine and fortunately I watched 20/20
last week when they featured decaffeinated coffee. Their research uncovered that
a third of the decaffeinated coffee purchased at coffee shops across the county
was not decaffeinated at all. Some cups had as much as 90 milligrams of
caffeine, about 80 mgs more that the typical cup of decaf!!! Since retiring I
stopped at Starbucks daily and when my A-Fib started acting up I went to 100%
decaf with no change in condition. After the 20/20 show I stopped buying coffee
all together and low and behold the attacks stopped almost immediately. Live and
learn, not everything advertised is what it is cracked up to be. Now my beat
can go on.., and on…, and on……. I hope.
Joe
emailed me a question this week concerning federal taxes on his annuity. He
received his “Retirement Booklet” this week from OPM and thought that
federal taxes were being taken out of his entire payment.
Your CSRS annuity is taxed at a reduced rate per IRS
Publication 721. Look under the "Contribution and Tax Information”
heading in the Benefits Booklet that you receive. You will see this statement,
"Under the Simplified General Rule, $ XXX of each monthly payment is tax
free." There should be a dollar amount specified. Only a very small portion
of your annuity is tax free because they distribute your contributions - what
you actually paid into the plan - over what they anticipate your life expectancy
will be. In my case I pay federal taxes on 95.05% of my annuity payment each
month. On the up side,
Pennsylvania
doesn’t tax your annuity.
Go to the IRS web
site at
http://www.irs.gov to download Publication 721. Use the Simplified Method
form in the booklet to calculate the amount of your monthly payment that won’t
be taxed. To calculate what your federal tax will be use the calculator that we
list online at
http://federaljobs.net/retire/annuity . Click on the menu selection titled
“General Annuity Payment Information.”
Well, we did it
again. Bookhaven launched our updated Federal Career Center at
http://federaljobs.net this past Sunday. This site includes a comprehensive
section for federal employees and offers professional federal resume and KSA
writing services. Feds will find contact information for the national records
center, guidance for internal and hardship transfers, Merit Promotions, and
reinstatement. If you get a chance take a look and let me know what you think of
the new format and content.
If any readers
would like complimentary ballpoint pens for their office, send me an email at
ddamp@aol.com with your mailing address and how many pens you need for the
staff at your location. I purchased a large number of attractive flag pens that
have my web site address on them.
See you all next
week.
Dennis V. Damp,
Retired FAA
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