Financial Tips for Federal Employees - July 2019
Here are a series of financial tips/information for designed for quick reading, written in the style of Twitter.
- Positive returns across the board for June 2019 in the TSP: .19% for the G fund, 1.26% for the F fund, 7.04% for the C Fund, 6.80% for the S fund and 5.94% for the I Fund.
- Please remember that beneficiary designations on accounts (like on the TSP) supersede any declarations on a will.
- If benefits are not cut by 23% or taxes are raised, the social security trust fund will run out of money between 2032 and 2034.
- A battle is setting up for pay raises for Feds in 2020. House has submitted a 3.1% increase and The White House is proposing a pay freeze.
- You don’t have to take a Required Minimum Distribution (RMD) from your TSP if you are still working, regardless of age. If you are retired, they begin being due April 1 of the year AFTER you turn 70.5.
- Please remember that FICA and Medicare are two wage taxes you won’t have to pay in retirement.
- Federal retirees can make changes to their FEHB options during open seasons. They can also add/drop family members at qualifying life events such as a divorce, marriage, adoption etc.
- All CSRS retirees and survivors receive COLAs. FERS nondisabled retirees under 62 don’t. At 62, they receive a COLA. It is reduced if the rate of inflation is over 2%.
The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. Carefully consider your investment objectives, risk factors before investing. Investing involves risk, including the possible loss of principal. Diversification and asset allocation may not protect against market risk. Nothing in this article is intended as legal or tax advice. Please consult with your independent legal or tax advisor to seek advice based on your particular circumstances. For a list of states in which I am registered to do business, you can visit www.adviserinfo.sec.gov and search for my name.
© 2019 Alexis Hongamen. All rights reserved. This article may not be reproduced without express written consent from Alexis Hongamen.