Category: Life Insurance

Since you have settled on the decision to retire, what comes next? Your retirement application. It is crucial to remember that it might bring attention to the subsequent procedure and be challenging to comprehend. Be patient and follow the steps below for a stress-free retirement application.

When your personnel office receives your retirement application, it will undertake a series of checks to establish whether or not you are qualified to retire on the day that you have selected and whether or not you will be able to continue receiving your Federal Employees Health Benefits (FEHB) and Federal Employees’ Group Life Insurance (FEGLI) coverage after you leave the workforce. These checks will decide whether or not you are qualified to retire on the date you have chosen. In addition, these checks will indicate whether or not you will be able.

Your personnel office will, presuming that there aren’t any issues, prepare a Certified Summary of Federal Service for you. This document will list your federal civilian and military service, assuming you have any of either. When they send you a copy of the record, you should examine it to ensure that it is accurate and make any necessary adjustments.

Therefore, as the time gets closer to the date you’ve chosen to retire, the personnel office at your company will do the following:

• Confirm your eligibility to continue receiving FEGLI coverage with the Office of Personnel Management (OPM);

• Transmit your enrollment in the Federal Employees Health Benefits Program (FEHB) to OPM if you are qualified to continue;

• Transmit any active beneficiary designations that are currently stored in your OPF;

• Have a Notification of Personnel Action form, known as an SF 50, processed to terminate your service;

• Finish and receive approval for the component of your retirement application that deals with the personnel office; and

Then your retirement application and all supporting documents are delivered to your agency’s payroll office.

Payroll Office

The payroll office will approve the last payment of your salary after you have retired and separated from the company. 

In addition, it will provide you with the authority to receive any lump-sum compensation due to you for unused annual leave. If you have been given the option of a “buyout,” it will also authorize the price for that option; However, you ensure that;

•Your Individual Retirement Record (IRR), the official record of your current service, pay rates, unused sick leave credit for retirement purposes, etc., are certified and closed off.

The IRR contains a list of your retirement deductions for your final term of employment. It is impossible to close it out until you have received your last salary check;

• Attest to your basic yearly wage for life insurance if you are planning on maintaining any coverage into retirement; and

• Send your retirement package to the Office of Personnel Management.

After your agency’s payroll file has been sent to OPM, as a general rule, the payroll office at your agency will notify you of this fact. This notification will include the following information:

1.  The registration number, as well as
2. Your payroll office identification number.
3.  And dates indicating when the mailing and transmission took happened,

If you need to check on the progress of your case after it has been submitted to OPM, then you will find that the information above is vital. You will be required to follow up with them if it does not.

The amount of time required to complete this procedure is contingent upon various factors, including the amount of work done in your organization’s payroll and personnel departments. The process can take far longer if they have insufficient personnel or are buried beneath a mountain of retirement applications.

The processing done by OPM is also depending on the amount of work being done. It can be overloaded during peak seasons, such as the end of the year and the beginning of the new year. To your good fortune, they will make an effort to pay you back a percentage of your annuity whenever it is feasible to do so.

This payment will be considered temporary until they have finished processing your application. After that, you will start receiving your correct monthly annuity payment and any catch-up monies that were not provided to you while receiving interim pay.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

The Thrift Savings Plan (TSP) wants you to consider a date when you want to plan your retirement. Several employees have already made their retirement plans long before they come of age. It is a very good thought since it will resolve many confusions and issues regarding retirement day and the benefits that come along with it. Therefore, many writings have been published regarding which would be the best day to retire when it comes to the Federal Employees Retirement System (FERS) or having an allowance.

There are many different days to choose from when planning for your retirement. Hence, you can choose any day for retirement once you fulfill the requirements. But certain days could be the best for planning your retirement. These specific days might provide you with benefits you had never imagined. If you choose the last day of the month, it can be favorable for FERS. On the other hand, choosing a day between the last day of the month and the third of the coming month may prove useful for the Civil Service Retirement System (CSRS). If you aim to have a healthy amount of your pay that is maximized to a good level, you may choose to retire at the year’s end. 

When you are looking for a Thrift Savings Plan, are there any days that might be valuable? Some days help to provide maximum savings at the end of your career. They might not be as advantageous as FERS and CSRS, but there might be something you would like to consider when you plan your retirement day. Following these approaches, you would keep yourself secure.

Firstly, if you want to retire at the end of the year, ensure that your deferral contributions for the existing year are at their maximum. In this way, your TSP would maximize. For instance, if you work for 26 days in a month and earn $20,500, you need to pay $789 per day according to 26 paydays. It will all be saved, and when you retire, you will have much more money than you thought. So, at the end of the year, you will have reached the maximum deferral amount in the last year of payment. Moreover, you will receive a full employer matching contribution since you have been given 5% of your monthly salary. (work 26 days in a month? I understand the 26 paydays (every other) but where does the 26 days in a month come in?)

Secondly, if you plan to retire at the end of the year, you will have to increase your contributions for that year. Use the strategy that is mentioned above. Divide the elective deferral amount by the paydays of that year. If you plan your retirement for the last day of October, you will work for 19 days only. Paying $1,079 per payday will bring a good elective deferral amount on the day you retire. Paying this much money can be difficult with ongoing inflation, but securing your future is better than utilizing it to build a modern look. Also, you will have a healthy lump sum when you retire since you contribute a maximum part of your salary to your TSP. Eventually, it will all be gold for you. 

Furthermore, employees who have attained the age of 50 can use a different approach as a retirement plan. By this age, they will have to look forward to maintaining their balance for retirement. Thus, these employees of this age or above, including the year they turned 50, can pay an extra $6,500 to their TSP. It would make a total of $27,000. Therefore, rather than giving a contribution of $789 that would maximize your regular contributions, you can pay $1,079 per payday. These strategies are only workable if you can afford to pay that much to the TSP. Many workers can do that since they are fortunate enough to pay a certain amount of their salary to pay into their TSP. Not everyone can afford to do that. If you are of the ones who cannot afford to do that, you can aim for the maximum amount you can pay without feeling a sense of burden. 

Lastly, regarding retirement, ensure you have a good amount of money for your needs. Even if you make and save a lot of money, it is still insufficient to live out your retirement days. Therefore, it is better to have more savings for your upcoming life than to have less and live miserably. If you still have enough time before you retire, you can start today by paying a good amount to the TSP.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

Women today are breaking ground by handling everything from paying the bills and investing to planning their retirement. Women are increasingly taking charge of budgeting at home. In the post-pandemic era, people want more control over their finances, including how they pay bills, save for the future, and invest their earnings. 

Do you know that women now outnumber men in college graduation rates and the workforce? A majority take the lead in managing their money and financial portfolios. This newfound economic autonomy is the clearest indicator that women are rejecting the idea that money matters should be left up to men. Therefore now the following ideas are true.

The Stakes are Higher for Women

If women don’t take charge, they stand to lose more than males. Females have a five-year life expectancy advantage over males, although they are paid less. Therefore, they must save enough money to endure during their potentially decades-long retirements, some of which will be spent in relative isolation.

For decades, many women have been discouraged from pursuing high-paying finance jobs or investing independently due to a lack of financial education. Now women are becoming more financially secure because:

1. Women take charge of business because women live longer than men.
2. They are financially literate and self-reliant, feel safer, and have more faith in their abilities, money, and investments. 
3. Female investors typically outperform their male counterparts.
4. Women are receptive to financial guidance, which is essential for financial planning.

Why Are They Able to do This?

Women are reclaiming control over their financial situations and concentrating on enhancing the quality of their professional lives. Only 60% of the women surveyed agreed that their workplaces were making strides toward equality for women in the workplace. 

However, there is some good news: women are taking charge of their professional lives. Though, a higher percentage of them are unhappy with their pay and want to leave their current jobs and find better ones. And that’s great news for us because the job market is hotter than it’s been in years.

Characters of Women in Our Dispensation

Becoming financially self-reliant takes bravery, determination, and a hunger for knowledge. Managing the household budget can be difficult, but adding investing and retirement savings can be overwhelming.

That’s why educating yourself and getting help when you’re stuck is crucial. Financial independence is more attainable for women who are not afraid to ask for help and listen to professionals’ advice. Building a plan that works for both the short and long term requires using a reliable financial expert.

Bottom Line

It takes careful planning to ensure women have enough money to last for twenty, thirty, or more years after we retire, and that money should come from secure, long-term sources. 

To all the ladies, it’s time to take charge—and find a financial professional who looks out for your interests. Anyone who looks down on women in this dispensation does so at their financial peril.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

Marvin Dutton

Author

By following these procedures, you may establish a solid foundation for your financial future in retirement.

It’s time to start planning your money for 2023 as 2022 winds up. No matter how close you are to retirement or how many years you have left in the workforce, there are some Social Security decisions you must make. These measures won’t take long, but they can ensure a more secure financial future in old age.

1. Establish the age at which you can fully retire

At FRA, you can collect 100% of your benefit amount based on your lifetime of work. For example, a person’s FRA is 67 if born in 1960 or after. So, if you were born before 1960, you can anticipate retiring at 66 or 66 plus a specific number of months.

Benefits can be started as early as age 62, but they are reduced by 8% per month until the full retirement age is reached. However, you can receive a monthly bonus on top of your regular benefit payment if you wait to start collecting until after your FRA (up to age 70).

Knowing your FRA can help you settle on a claiming age that works best for you. Knowing your FRA can also help determine when you can retire and apply for Social Security.

2. Verify your estimated benefit amount 

Years before you retire, you can still get a rough idea of your benefits. First, you can log into your Social Security account online and review your most recent online statements. Then, by entering your actual salary history, you can calculate a reasonable estimate of your future pension.

Consider that this sum is predicated on your submission at your FRA. As a result, depending on whether you start getting benefits right now or wait, your benefit amount could decrease or increase. The amount of your pension may also alter if you have several years to go before retiring, depending on your future salary.

3. Review your finances

Knowing your estimated Social Security benefit amount might help you plan for retirement on a more secure financial footing. You can next evaluate your savings to determine if you have enough to supplement your Social Security income and live well in retirement. You might have to increase your savings rate if you discover that your Social Security benefits will be lower than anticipated.

Even if retirement is decades away, it is wise to prepare now. If you discover that you will need to dip into your savings more than anticipated, giving yourself additional time to save will make it much simpler to get to your goal.

A wonderful time to evaluate your financial situation is at the beginning of the year and make any required changes to your retirement plans, investing strategy, and savings goals. If you take these three steps, you may enter 2023 with as much preparedness as possible.

Most seniors are entirely unaware of the $18,984 Social Security bonus.

Many Americans are years behind in saving for retirement. However, knowing a few “Social Security secrets” could increase your retirement savings. One simple strategy, for instance, may result in an additional $18,984 in annual income. In addition, you’ll be able to retire stress-free after you understand how to optimize your Social Security payments.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

Government retirement savers could partially compensate for last month’s losses thanks to an impressive October for the stock market, which included the best month for the Dow Jones Industrial Average since 1976.

October’s strong stock market performance was much-needed after a disastrous September in which all Thrift Savings Plan funds lost money except for the infamously conservative G Fund, which invests in government securities. The S&P 500 posted an 8% gain for the month, the NASDAQ rose 3.9%, and the Dow increased by 14%.

This is good news after a late October report from the TSP board revealed that the average account balance for Thrift Savings Plan investors was down roughly $30,000 year-to-date through September. That helped all three of the stock-based funds in the federal government’s 401(k)-like Thrift Savings Plan (TSP) post significant gains in October.

The TSP’s small firm stock S Fund took the lead with a gain of 8.59% in October. Following that, the large firm stock C Fund saw a gain of 8.1%, and the international stock I Fund saw a gain of 5.98%. Despite the improvements in October, these funds still have losses of 23.83%, 17.7%, and 22.9%, respectively; over the past 12 months, they have lost 27%, 14%, and 22.74%, respectively.

The TSP’s bond-based fixed income F Fund fell by 1.26% in October, for a loss of 15.38% for the entire year. The G Fund, the only TSP fund to have made money so far in 2022, increased by 0.34% for the month, bringing its gain for the year to a meager 2.29%.

2055, 2060, and 2065 funds of the TSP’s target-date fund-like lifecycle funds saw the most gains in October, each rising by 7.36%.

	YTD Return at end of September	YTD Return at end of October
G Fund	1.94%	2.29%
C Fund	-23.87%	-17.70%
S Fund	-29.85%	-23.83%
I Fund	-27.25%	-22.90%
F Fund	-14.30%	-15.38%

 All of the core Thrift Savings Plan funds are still significantly down for the year, except for the F Fund, which kept losing in October, but the losses are less after accounting for the gains for each fund in October.

 Below is a summary of TSP’s performance for the year, the last 12 months, and through October 31, 2022. 

Fund	October 2022	Year-to-Date	12-Month Return
G Fund	0.34%	2.29%	2.55%
F Fund	-1.26%	-15.38%	-15.40%
C Fund	8.10%	-17.70%	-14.61%
S Fund	8.59%	-23.83%	-27.24%
I Fund	5.98%	-22.90%	-22.74%
L Income	1.98%	-4.13%	-3.61%
L 2025	3.07%	-8.48%	-7.75%
L 2030	4.52%	-12.45%	-11.62%
L 2035	4.91%	-13.89%	-13.02%
L 2040	5.32%	-15.22%	-14.33%
L 2045	5.66%	-16.42%	-15.53%
L 2050	6.02%	-17.50%	-16.59%
L 2055	7.36%	-20.14%	-19.13%
L 2060	7.36%	-20.15%	-19.14%
L 2065	7.36%	-20.16%	-19.16%

Source: TSPDataCenter.com

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]