David Fei, CFP®, ChFEBC℠, AIF® - PlanWell Financial Planning

OPM Retirement Processing Time Update – March 2024

Federal Retirement Backlog Update – March 2024 OPM received 7,943 retirement claims in March 2024, down slightly from 8,794 in February. They were able to contine to process about 10,000 claimes and brought the backlog down to 16,823. Lowest so far in 2024 and much lower than the same time last year. What is the Current Status of the Federal Retirement Backlog Monthly Average Retirement Processing Time The average retirement application processing time dramatically decreased from 68 days in December

FEGLI Basic Life Insurance: Biggest Missed Retirement Benefit for Federal Retirees

FEGLI Basic Life Insurance: Biggest Missed Retirement Benefit for Federal Retirees Federal Employee Group Life Insurance coverage (FEGLI) is a unique and misunderstood retirement benefit for federal employees. It is unique in the fact that you have the ability to keep it after retirement. Group life insurance policy in the private sector ends when an employee retires. They usually cannot keep their private group life insurance into retirement even if they want to. So why is it that when I

Comparing Mutual Fund and ETF: Which is Better?

ETFs vs. Mutual Funds: Navigating Your Investment Choices In the vast options of investment, two tools have emerged as popular choices for investors: Mutual Funds and ETFs. Both offer ways for investors to professional management and access to markets that may be readily available for diversification. However, there are some critical differences between them. This overview will delve into the key characteristics, advantages, and considerations associated with both mutual funds and ETFs, providing a foundation for exploring their respective pros

Understanding the Pros and Cons of Taking a TSP Loan from Thrift Savings Plan

The Pros and Cons of Taking a TSP Loan for Federal Employees One advantage of the TSP or 410k plan over an IRA is the ability to borrow against the funds. A credit check is not required, and the loan can be accessed relatively quickly. However, is that a good idea? What are the hidden costs of taking a TSP Loan? This article will shed light on TSP loans, their advantages and disadvantages, and how to decide if one is right

Should Every Federal Employee Have a High Deductible Health Plan?

Why Every Federal Employee Should Consider a High Deductible Health Plan This FEHB Open Season When I talk to federal employees about their health plans, most say they use the BCBS plan. According to its website, it is the most popular plan for federal employees and covers up to 5.5 million active and retired feds. So why should you consider something else? Financial planning is about understanding what you don’t know. I hope this article helps you understand HDHPs and

February 2024 Inflation & CPI Update: Consumer Price Index Ticked Back to 3.2%

February 2024 Inflation Update: Consumer Price Index (CPI) at 3.2% The up and down of the Consumer Price Index is not over yet. In February 2024, it rose 0.4% compared to a month ago. The CPI is published by the Bureau of Labor Statistics and the Bureau of Economic Analysis. The Federal Reserve also uses this data to determine interest rate changes and policy. Consumer Price Index (CPI) & Core Inflation Rate The CPI data is a widely followed

VERA and VSIP: A Guide to Federal Early Retirement

What is VERA and How Can It Benefit Federal Employees? For federal employees approaching retirement, the Voluntary Early Retirement Authority (VERA) program presents a compelling option. VERA provides an opportunity to retire earlier than the standard age with accompanying benefits, making it an appealing choice for those contemplating a transition. Unlike conventional retirement avenues, VERA has distinct eligibility criteria and potential advantages that warrant examination. By delving into the specifics of VERA and its potential benefits, eligible federal employees can

Retirement-Planning-Workshops-For-Federal-Employees

What Happens When You Retire or Quit with a TSP or 401k Loan Balance?

Exiting Your Job with an Unpaid TSP or 401k Loan: What’s Next? Leaving a job often brings about a whirlwind of professional and financial changes. Among these considerations, managing any outstanding 401k or TSP loans is crucial. Understanding what happens to your loan when you exit or retire from your job is vital for safeguarding your retirement savings and avoiding potential penalties. What Happens to Your 401k Loan When You Leave Your Job? When you quit your job, your

Record OPM Retirement Processing Time in February 2024 – Federal Retirement Backlog Update

Record OPM Retirement Processing Time in February 2024 – Federal Retirement Backlog Update OPM received 8,794 new retirement requests in February 2024. However, it processed 10,000 cases in the same month and reduced the overall inventory backlog to 19,591. See the latest update from OPM on the current retirement processing time. What is the Current Status of the Federal Retirement Backlog Monthly Average Retirement Processing Time The average retirement application processing time dramatically decreased from 68 days in

Navigating Divorce: Understanding the Impact on Your Federal Employee Benefits and Retirement

The Impact of Divorce on Federal Employee Benefits and Retirement Divorce can be a tumultuous time in anyone’s life, and for federal employees, it can bring about additional complexities concerning their federal retirement benefits and plans. Understanding how divorce affects Federal Employee Retirement System (FERS) benefits, health insurance, Thrift Savings Plan (TSP), life insurance, survivor benefits, and retirement planning is crucial for navigating this challenging period. Here, we delve into the various facets of divorce and its impact on federal

Author: David Fei, CFP®, ChFEBC℠, AIF®