Retirement & Financial Planning Report Issue Thursday, October 14, 2004
FEDweek is the largest information resource in the federal government with now over one million weekly readers. *********************************************************** Valuable Information for the Federal Family 2004 Interactive Federal Leave Record at http://www.fedweek.com/Services/default.asp FEDweek Weekly Electronic Newsletter Go to http://www.fedweek.com to Sign Up-FREE! Brand New Federal Manager's Daily Report http://www.fedweek.com/subscribepopup.htm Job Bulletin Board Federal Job Search http://www.fedweek.com/Jobs/default.asp ********************************************************** In This Week's Issue: 1. Piece Work 2. Rising Rates 3. Bigger Might Be Better 4. FEDweek is Announcing the Upcoming Retirement Planning Seminars http://fedweek.sparklist.com/t/294960398/821890/3/0/ 5. Loan Arrangers 6. Reduction Deductions 7. New In-Print 2005 Federal Handbook Publication Announcement http://www.fedweek.com/Publications/default.asp *********************************************************** ** New Publication Announcement ** 2005 Federal Employees Handbook Just Published Go to http://www.fedweek.com/Publications/default.asp Or see item #7 Below for more details. ******************************************** 1. Piece Work If you are among the co-beneficiaries of an IRA, you may want to divide up that inherited account so that each beneficiary can make his own investment decisions and use his life expectancy for minimum required distributions. If so, you must first establish three new "inherited IRAs" with the same or a different IRA provider. The existing account can be titled, "John Smith, deceased, IRA, payable to A, B, and C as beneficiaries." Each new inherited IRA will be titled "John Smith, deceased, IRA, payable to [Bob Smith] as beneficiary." Then the custodian who holds the existing IRA will transfer an equal amount from the original account into each of the three new accounts. These transfers must be made directly from the old IRA into the new IRAs. If the custodian of the old IRA distributes funds directly to a nonspouse beneficiary, that beneficiary cannot roll over that distribution into any other IRA (inherited or otherwise). Thus, it is essential that the funds move only by means of direct account-to-account transfer. 2. Rising Rates Now that short-term interest rates are moving up, bank certificates of deposit (CDs) are paying higher yields. Some savvy moves can help you get the best deals. Climb a ladder. You might, for example, put 20 percent of your CD money into CDs of five various maturities, ranging from one to five years. That will produce a decent overall yield. You�ll have cash to reinvest each year, which will help if rates keep rising. Stay in the safety net. Bank CDs are insured by the Federal Deposit Insurance Corporation up $100,000. If you have larger amounts to invest in CDs, spread your money around several banks. Shop around. Search the Internet on sites such as www.bankrate.com for the best rate for each maturity. Recently, for example, average yields were 0.45 percent for money market accounts and 1.32 percent for five-year CDs. Yet Bankrate�s survey found six banks paying at least 2 percent on money market accounts and seven paying at least 2.4 percent on one-year CDs. 3. Bigger Might Be Better In some situations, big banks offer good deals. You're more likely to find free checking at a big bank than at a smaller bank or a credit union. Larger banks may offer free online banking and bill payment as well. Smaller banks often don't have many automatic teller machines and won't reimburse the fees customers incur for using competitors' ATMs. You might be able to slash your ATM fees because big banks have many more ATMs than local banks. What�s more, major banks with many ATMs may offer multistate facilities. Even if you prefer the personal service of a local institution, you might want to split your funds between a local credit union, say, and a big bank that can offer you added convenience when you travel. 4. FEDweek is Announcing the Upcoming Retirement Planning Seminars http://fedweek.sparklist.com/t/294960398/821890/3/0/ Over The Next 30 Years, the Baby-Boomers (YOU) Will Transfer to Your Heirs Over Thirty-Five Trillion Dollars! As you know, the baby-boomers are growing more mature every day and are planning for their retirement. Are you a baby-boomer? Are you prepared for your retirement and to transfer your estate to your loved ones? FEDweek has partnered with two of the most respected federal retirement and estate planning training organizations to provide federal employees with the highest quality of seminars related to your federal retirement, financial and estate planning. Below are the seminar locations through 2004: ************************ Date Oct. 19-21 (PBSC) San Antonio TX - Wellesley Inn Date Oct. 26-28 (NITP) Virginia Beach, VA. - Doubletree Date Nov 9-11 (PBSC) Honolulu HI - Doubletree Date Nov. 16-17 (PBSC) Indianapolis, IN - Radisson Hotel Airport Date Nov 16-18 (NITP) Washington, DC - Washington Plaza Date Nov 30- Dec 2 (NITP) Linthicum MD - Holiday Inn BWI Date Dec 6-8 (NITP) Huntsville Al - Holiday Inn Research Park Date Dec 7-9 (PBSC) Houston TX *********************************************************** There are still a few seats available for these locations. For a complete list of seminar locations and dates through December, 2004, Go to http://fedweek.sparklist.com/t/294960398/821890/3/0/ We've also recently added additional seminars for 2004 (Even Hawaii and San Diego!!) dramatically expanding the coverage areas to include most cities throughout the entire country, with more to come. Go to http://fedweek.sparklist.com/t/294960398/821890/3/0/ to see the latest schedule. These comprehensive programs will provide the participant with valuable information about retirement planning and ways to ease the transition into retirement. The seminar speakers, all experts in their field, will challenge you to ask tough questions. These seminars are broken down into a number of components that discuss considerations necessary for planning for retirement, including: FEDERAL RETIREMENT BENEFITS THRIFT SAVINGS PLAN INSURANCE, MEDICARE AND SOCIAL SECURITY BENEFITS FINANCIAL AND TAX PLANNING ESTATE PLANNING LIFE AFTER RETIREMENT AND SECOND CAREERS For more info on these retirement planning seminars, go to http://fedweek.sparklist.com/t/294960398/821890/3/0/ Also, pass the word along to your colleagues that there will also be multi-seminar attendee discounts for employees attending from the same agency office location. Publisher's Note: All Seminar Attendees Who Register For Any Retirement Planning Seminar Will Two Valuable FEDweek Publications FREE! 5. Loan Arrangers If you (or your children) have outstanding education loans, consolidation may permit borrowers to lock in low fixed interest rates. Under a federally subsidized program, each July the Department of Education sets fixed rates for the following 12 months. The fixed rates are tied to an index of the 91-day Treasury bill rate as of the end of May each year for all loans consolidated during the 12-month period. In May 2004, the T-bill rate hit a low of 1.07 percent so the fixed rate that applies to loans consolidated between July 2004 and June 2005 will be 3.37 percent for Stafford Loans and 4.17 percent for PLUS Loans, for the life of the loan. By comparison, these loans can adjust to maximum rates of 8.25 percent and 9 percent, respectively. To consolidate, first contact the companies that service the loans because the federal program requires that you work with that loan-consolidation product first. If you have loans through several providers, each should offer the interest rate set by the government rules but their terms and other valuable discounts can vary. There are no fees, credit checks or collateral required, so steer clear of any provider who states otherwise. 6. Reduction Deductions Some "above-the-line" tax deductions are available, regardless of whether you take itemized deductions or the standard deduction. These deductions reduce your adjusted gross income (AGI), which can save you money elsewhere on your tax return. Examples include: Higher education outlays. You may be able to deduct up to $4,000 this year for money you spend on post-high-school tuition and required fees for yourself, your spouse, and dependents. A couple filing jointly can have up to $130,000 in income to take a full $4,000 deduction. Student loan interest. You can deduct up to $2,500 worth of interest paid on student loans this year, if the loan financed higher education for you, your spouse, or a dependent. Alimony. Your payments are deductible while the recipient picks up taxable income. You�ll have to provide your ex-spouse�s Social Security number so the IRS can check to see if your ex is reporting the amounts you deduct. Moving expenses. If you move your primary residence more than 50 miles, in connection with a new job or other business reasons, you can deduct the costs of transportation of household goods and personal effects as well as your travel to the new residence (including lodging but not meals). Early-withdrawal penalties. If you cash in a bank CD this year and pay a penalty as a result, the penalty can be deducted. 7. New In-Print 2005 Federal Handbook Publication Announcement http://www.fedweek.com/Publications/default.asp ************************************************************ To: All Federal Employees, Managers, and Postal Workers (Also Available for Bulk Agency Distribution at Discounted Rates) http://www.fedweek.com/Publications/default.asp Dear FEDweek Reader: For 2005, the Federal Employees Handbook has been completely revised and expanded in an all-new easier to read two-column format while still keeping the size of the book and cost down to $9.95! This has been the federal government's number one selling reference tool for the past 7 years and we're proud to announce that the 2005 version has been published! As you may know, there's a lot of information available to federal employees in the form of downloads and sometimes brochures or pamphlets, but most often they can fall woefully short in many areas. FEDweek steps in and fills the void where the federal government and others leave off, adding to and "translating" official language to make it easier to understand and to use. Written by our veteran team of experts, the 2005 Federal Employees Handbook contains the very latest critical information on your federal pay and benefits and workplace policies and will help you take full advantage of your opportunities and avoid costly mistakes. It has brand new sections on the latest Federal Employment and Benefit Policies, Including: All New in The 2005 Federal Employees Handbook: A close look at the new personnel authorities for the Departments of Defense and Homeland Security-their pay, performance evaluation, hiring, disciplinary and other procedures that mean huge changes in work life for employees working there and possible precedents for other agencies The latest on contracting-out policies and how they might threaten your job New hiring authorities that could affect your promotional potential, including how veterans preference comes into play New leave benefits for employees called to active military duty The latest on what happens to your benefits if you separate before retirement eligibility New loan and other policies at the Thrift Savings Plan How you might qualify for a payment from the "human capital performance fund" Guidance on what will be expected of you in emergency situations Latest policies and figures on health, life and long-term care insurance, flexible spending accounts, federal retirement, Social Security and other benefits Also Included in This Valuable Flagship Handbook: The new "premium conversion" tax break under FEHB How federal employees can use the Career Intern Program Government payments for liability insurance Public transit subsidies for federal workers Ways agencies can pay you more money How the government can help you pay off your student loans Allowable use of computers and other office equipment for personal purposes Hours of work for official travel Allowable reimbursement for travel from non-federal sources Latest information on leave policies, including eligibility for lump-sum payments for annual leave, alternative uses of sick leave and new rules on military leave for federally employed Reservists How the new "retirement errors" correction law can affect your benefits Eligibility, benefit choices, and premium considerations under the imminent federal long-term care program. How to file employment-related financial claims against the government New requirements to allow employees to work off-site, including from their homes! Brand new TSP investment options and rules AND COMPLETELY REVISED AND UPDATED FOR 2005: Federal Pay Systems, Pay and Compensation Policies, Health Insurance, Life Insurance, Retirement, The Thrift Savings Plan, Social Security, Medicare, Taxation of Federal Benefits, General Employment and Workplace Rules, Employment Restrictions, Veterans' Rights and Preference, On-the-Job Injuries and Illnesses, Downsizing Policies, Directory of Unions and Other Groups, Appealing Agency Actions Against You, Alternative Dispute Resolution, Leave and Other Forms of Time Off, Survivor Benefits Travel, Transportation, Per Diem and Relocation Allowances, And much, much more! "This 2005 Federal Employees Handbook is an essential reference guide you can't afford to be without whether you are a federal employee, federal manager or executive or postal worker". Don Mace Publisher, FEDweek How to Get Your 2005 Federal Employees Handbook for Your or Your Agency http://www.fedweek.com/Publications/default.asp *********************************************************** Go to http://www.fedweek.com/Publications/default.asp to order online or see below for other ways to order. The Cost of The 2005 Federal Employees Handbook is still only $9.95 with dramatic discounts for agency or library bulk orders and here are the ways to order it: Place Your Secure Order Online With Credit Card http://www.fedweek.com/Publications/default.asp Call or toll-free order line (888) 333-9335. We have FEDweek Team Members ready to take your order 24 hours per day, 7 days per week. By Mail Send $13.95 ($9.95 plus $4) to FEDweek, PO Box 5519, Glen Allen, VA 23058 *********************************************************** Published by FEDweek LLC 11541 Nuckols Rd. Suite D Glen Allen, VA 23059 (804) 288-5321 http://www.fedweek.com [EMAIL PROTECTED] --- You are subscribed to financialplanningreport as [EMAIL PROTECTED] To unsubscribe, send a blank email to [EMAIL PROTECTED]
