Between now and early January 2021, thousands of federal and postal workers will put in their retirement papers and end their careers. Some have been planning for a long time and have, hopefully, all their ducks in a row. For others it may be a spur-of-the-moment decision, maybe a political or personal decision to move on. Whatever the reasons, December and January are the most popular months. This year for the first time, many of the potential retirees, and the people assisting them, will be working from home. For many retirees, this next phase of their lives could last at least as long as they worked. Retirements of 20 or 30 years are not uncommon. So planning for the very long haul is critical.
People under the Civil Service Retirement System (CSRS) program will get larger annuities and full cost of living adjustments (COLAs) to keep pace with inflation. But the majority who will this year and in the future are under the Federal Employees Retirement System (FERS). They will have to live with smaller monthly annuities, diet COLAs, and depend on their Social Security and TSP investments for their retirement income. Long range planning isn’t just important, it is absolutely essential. Federal benefits expert Tammy Flanagan thinks this upcoming December-January may produce the tidal wave of retirements experts have incorrectly predicted for decades. But maybe this time it will happen. But whether you are going out this year, next summer or departure day is years away, plan ahead. Starting yesterday. But beginning now is better than nothing. A lot better.
For starters, Tammy will be my guest today on our Your Turn (10am EDT). You can listen live here or on 1500 AM in the D.C. area. She is going to cover the waterfront and focus on the 7 things you should NOT do when mapping out your retirement. Below is her list. It’s a long one, but trust me your retirement will seem a lot longer and leaner if you skip it. Here goes:
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Have questions for Tammy? Send them to me before showtime.
By Alazar Moges
The Washington National Cathedral in D.C. has a Darth Vader gargoyle. It is hard to see by the naked eye, but in the 80s while the two west towers were under construction, the Cathedral held a design-a-carving competition for children. The third-place winner, Christopher Rader, submitted a drawing of the Star Wars villain. The fierce head was sculpted by Jay Hall Carpenter, carved by Patrick J. Plunkett, and placed high upon the northwest tower of the Cathedral.
Source: Washington National Cathedral
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|Nov 27, 2020||Close||Change||YTD*|
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.