Retirement & Financial Planning Report Issue Thursday, November 11, 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. Opportunity Cost 2. More Miles For Your Money 3. Final Thoughts 4. Tired of the Pension catch-22; guaranteed income without growth 5. Open Your Eyes About Closing Costs 6. Computer Networks Now Offers Unlimited Monthly Internet Service http://fedweek.sparklist.com/t/294976794/821890/148/0/ 7. FEDweek is Announcing the Upcoming Retirement Planning Seminars http://fedweek.sparklist.com/t/294976794/821890/342/0/ 8. Prepare A Paper Trail 9. Bottom Up 10. Get a FREE Strategic Guide to Your Investment & Financial Planning When YouPlace Your Order for one of our Brand New 2005 CSRS or FERS Retirement Planning Guides. THIS IS A BRAND NEW FREE BOOK OFFER THAT JUST BEGINS TODAY AND WILL LAST ONLY WHILE SUPPLIES LAST FOR THIS SOUGHT AFTER BOOK! Go to http://www.fedweek.com/csrs.htm to order your CSRS Retirement Planning Guide Now. Go to http://www.fedweek.com/fers.htm to order your FERS Retirement Planning Guide Now. *********************************************************** ************************************************************* This Issue of RFPR is Sponsored By Mail Handlers Benefit Plan (MHBP) Presenting the Mail Handlers Benefit Plan (MHBP) Standard Option. It's one of the most popular plans with federal and postal employees and an exceptional value this Open Season. http://fedweek.sparklist.com/t/294976794/821890/362/0/ MHBP Standard Option truly has it all, including these PPO benefits: * New! 100% benefit for covered adult preventive care screenings, such as mammograms and cholesterol tests, with no deductible * New! Low copays for chiropractic care, just $5 per visit, with no deductible ($2,000 annual benefit for alternative, chiropractic and rehabilitative therapies) * $10 copays for generic prescriptions at participating pharmacies * $20 copays for adult doctor's office visits and $10 copays for dependent children under age 22. http://fedweek.sparklist.com/t/294976794/821890/363/0/ And since the MHBP Standard Option is powered by First Health�, you'll enjoy peace of mind knowing a national health benefits leader is right at your side. The MHBP Standard Option offers you easy-to-find PPO doctors and hospitals wherever you live, work or travel. MHBP also gives you a choice of low-cost supplemental dental and vision plans. Both are great options that help reduce your out-of-pocket costs. You can enroll at any time, even if you're not a member of our health plan. (Of course, your best value is to enroll in our health plan, too!). Act now and see how easy it is to switch to MHBP Standard Option! Visit http://fedweek.sparklist.com/t/294976794/821890/343/0/ or call 1.800.410.7778. *********************************************************** 1. Opportunity Cost Brokers may approach investors with the idea of quick money, which can be very dangerous. You might hear that a stock is about to take off, for example. This type of claim is easy to sell because people want to believe it. Keeping in mind the classic saying: "If it sounds to good to be true, it probably is." After all, if a broker absolutely knew that a stock was going to increase by 50 percent in a few weeks or months, why would he tell you about it? He'd be investing all of his own money, borrowing against his house, urging his parents to buy the stock, etc. He probably wouldn't call you, especially if you're not a client already. If you get a cold call from a broker with a firm that's not a household name, be especially cautious. About half of all securities arbitration awards are unpaid because the brokerage firm has gone out of business. Even if you win a dispute with a thinly capitalized firm, you probably won't recover anything. 2. More Miles For Your Money If the high price of gasoline has you thinking about cutting costs, hold onto your current auto. The least expensive car you can drive is the one you already own. When your current car payments end, keep making the same monthly payments into a money market fund. Then, when the maintenance payments on your current car start to rise, use that fund, plus the trade-in value on your existing car, to buy your next car with a small (or even no) loan. At that point, don't buy a new, never-owned car because you'll lose as much as 40 percent of the purchase price to depreciation in the first two years. A used car likely will be a better buy--the average no-longer-new car is traded in after less than four years, with less than 50,000 miles on the odometer. Buying such a car may provide years of practical transportation. The average reliable life of a car is over 10 years and over 120,000 miles. 3. Final Thoughts Although no one wants to think about funeral arrangements, ignoring the issue can lead to over-spending. According to the Federal Trade Commission, a traditional funeral package could run well over $10,000. Neither you nor you loved ones will benefit by spending thousands of dollars unnecessarily. What you can do to help your heirs. Specify what final arrangements you'd like and make sure your family knows your wishes. Pre-paying for a burial plot may save money in the long run, as you'll avoid future price increases. What you can do when a loved one dies. Don't agree to anything without consulting with family members. Under federal law, funeral homes must provide an itemized price list, in addition to any "combination packages, so that consumers can choose what they want without paying for unnecessary items. One way to save on some of those costs is a direct burial, when the body is buried shortly after death, usually in a simple container. This eliminates the costs of embalming and dressing for viewing, as well as the cost of a funeral service. Cremation can be even less expensive, unless you purchase an expensive urn for the ashes. Instead of a funeral just prior to burial, hold a memorial service later on. You'll cut the cost and the extra time may allow you to plan something special. 4. Tired of the Pension catch-22; guaranteed income without growth potential or access to your principal? You've worked hard to make your retirement dreams a reality. You've successfully accumulated assets. Most Americans are greatly under estimating their life expectancy and overestimating their financial resources. For a husband and wife, both age 65, there is better than a 60% chance one of them will reach age 90. Now take the next step - free of concern about outliving your income. There is a way to enjoy your retirement to the fullest. Investing in an American Legacy variable annuity and electing i4LIFESM Advantage as a feature can provide guaranteed lifetime income and tax efficiency, while allowing you to maintain investment control. Based on the high initial demand for this new feature (i4life),we ask that you only request a personalized hypothetical illustration if you have the ability to invest $100,000+ As demand cools over the next few months this minimum might be reduced to $50,000 To find out more contact Brandon Mink at [EMAIL PROTECTED] All other questions: As a special offer to FEDweek subscribers, Brandon Mink, First Vice President - Investments at Smith Barney has offered his time (and that of his staff) to provide a complimentary consultation about financial planning, investing and retirement. Contact Brandon at [EMAIL PROTECTED] to send your question on to Brandon and his staff. 5. Open Your Eyes About Closing Costs When you're financing or refinancing your home, look hard at the terms of the loan. Generally, there are five kinds of closing costs: Fees charged by a broker or lender Fees charged by or controlled by third parties Taxes Title insurance Prepaid items When you're shopping for a loan, pay special attention to the first two types of costs. It's not that the others are unimportant; rather, the last three items are difficult to estimate accurately. Lenders and brokers have direct control over origination, administrative, underwriting, processing, funding, document preparation, and wire transfer fees as well as points. Third-party fees cover the appraisal, credit report, inspection, mortgage insurance application, tax service, and flood certification. Also check the estimated costs of surveys and pest inspections. Assuming that interest rates are comparable, go with the lender or broker charging the least for these fees. You generally can ignore the other fees (taxes, title insurance, prepaid items) because they won't vary much from lender to lender. 6. Computer Networks Now Offers Unlimited Monthly Internet Service Computer Networks, Inc. Is pleased to announce that FEDweek Readers can now get UNLIMITED Internet access for only $10.90 per month or $14.85 for Unlimited Internet with Turbo Accelerator--increasing your internet speed up to Five times the speed! Now, all Our Can Get Broadband DSL-Like Speed Over Your Phone Line at Home http://fedweek.sparklist.com/t/294976794/821890/148/0/ A Few Important Facts: Over 50% of our readers who have called the toll free information number 1-800 452-9201, signed up for this Internet service, it's that good. On-line Signup is available as well! You can get the fastest and most comprehensive internet accelerator on the market and unparalleled 24/7 customer service for only $14.85 per month--You'd pay more than twice that at AOL, Earthlink or any of the others. Take a Look at Some of these Cost Comparisons: CNW $14.85 AOL $23.90 MSN $21.95 Earthlink $21.95 AND CNW does not charge for Tech Support! It is easy to see, Computer Networks will cost you less every month! CNW has added over 7,000 new V.92 access lines to meet the needs of the FEDweek readers! Chances are that you are now covered by CNW with the latest technology that allows faster data thru-put and well as advanced compression schemes. Plus you'll get Spam controls to help keep your inbox free of junk email IF you're in pursuit of a fast, reliable Internet connection, Computer Networks Inc. has partnered with us to provide Internet Services to our readers at a special low rate as low as $10.90 per month with no long term contracts to sign (like most other internet service providers require). Best Choice: Turbo Accelerator Internet Service is the new CNW Turbo Internet access version 3.1 is the fastest and most comprehensive Internet accelerator available today. CNW offers DSL like speed over 56k dial-up connection and fast downloads of e-mail and Web pages--all for only $14.85 per month! For more information or to sign up today, go to http://fedweek.sparklist.com/t/294976794/821890/148/0/ or call CNW toll-free at 1-800 452-9201. This is a special offer to all our readers only, just Another value added benefit for being a one of our readers. 7. FEDweek is Announcing the Upcoming Retirement Planning Seminars 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 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/294976794/821890/342/0/ 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/294976794/821890/342/0/ 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/294976794/821890/342/0/ 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! 8. Prepare A Paper Trail When donating goods to charity, you can assign your own valuations for small gifts without having to show receipts. Larger gifts require paperwork, though: * For a contribution of $250 or more, you must get a written receipt of your donation from the charity. * For a donation of more than $500 worth of goods, you must include Form 8283 with your tax return, providing details about your gift. * If you claim a deduction of more than $5,000 for any one item, you must have a qualified appraiser provide a valuation that you attach to Form 8283. If you've seen all the ads inviting you to donate autos to charity, be aware that the IRS will look hard at the values claimed for such donations. You're probably better off selling the car and giving cash to charity. 9. Bottom Up Term life insurance premiums, which had fallen to all-time lows, are increasing. Lower rates had resulted from longer life expectancies: the longer you live, the longer the insurance companies get to hold onto your money. Life expectancies aren't dropping but consolidation in the reinsurance market (where insurers get their policies insured, to reduce their risk) has increased costs and led some term insurers to raise rates by 5-10 percent. Other insurers are responding to rising costs by tightening "underwriting" (medical evaluation) rules and thus making it harder to get the lowest premiums. Cancer that your now-healthy mother had 20 years ago might cause your premiums to jump. Keep in mind that any premium increases affect only new policies, not those already in effect. Moreover, not all insurers have pushed up their prices so far. Therefore, if you think you need additional life insurance, or if you want to lock in longer-term coverage, now is probably the time to buy. 10. Get a FREE Strategic Guide to Your Investment & Financial Planning When You Place Your Order for one of our Brand New 2005 CSRS or FERS Retirement Planning Guides. THIS IS A BRAND NEW FREE BOOK OFFER THAT JUST BEGINS TODAY AND WILL LAST ONLY WHILE SUPPLIES LAST FOR THIS SOUGHT AFTER BOOK! Go to http://www.fedweek.com/csrs.htm to order your CSRS Retirement Planning Guide Now. Go to http://www.fedweek.com/fers.htm to order your FERS Retirement Planning Guide Now. *********************************************************** ** Special FREE Publication ** FEDweek will give you absolutely FREE a valuable publication, Your Strategic Guide to Investment & Financial Planning everyone who orders the next 10,000 orders placed for either of these two federal retirement planning guides. (Limited One FREE Book per order) This is one way we can say thank you for allowing us to serve your needs and we hope to for many years to come!! ********************************************************** The 2005 CSRS Retirement Planning Guide http://www.fedweek.com/csrs.htm The 2005 FERS Retirement Planning Guide http://www.fedweek.com/fers.htm Below you'll find more details about these publications. *********************************************************** The 2005 CSRS & FERS Retirement Planning Guides http://www.fedweek.com/pub/index.php Now in their seventh year of print (and over 350,000 sold), these CSRS and FERS Retirement Planning Guides truly help you fully understand your federal retirement. These planning guides simplify the retirement planning process, helping you calculate your annuity (with plenty of examples), warn you about possible reductions in your annuity, tell you how Social Security fits into the picture, and what to do about health and life insurance. In short, they contain everything you need to know to make your federal retirement a success. These 2005 CSRS & FERS Retirement Planning Guide are NOT Dot.com downloads or government handouts or pamphlets, they are In-print comprehensive and easy-to-understand planning guides that were written and edited by our veteran-team of federal retirement planning experts in the field. Here are some of the key features and updates that these 2005 retirement planning include: A step by step guide to embarking on the retirement journey A description of the new long-term care program, with explanations of potential traps for those close to retirement A quick reference guide to benefits your survivors would stand to receive on your death A description of how Tricare-for-Life might replace FEHB as your health benefits provider Details on how to carry retirement and other benefits into retirement and how you can change those benefits after retirement An easy to follow guide to understanding annuity statements How the new TSP investment, rollover, withdrawal and other rules will affect you before and after retirement Latest information on COLA rates and policies, payments to survivors and other benefit rates The latest information on Social Security benefit rates and eligibility rules The latest information on FEGLI, FEHB, service crediting for retirement purposes and other vital retirement-related issues ALSO IN THESE 2005 CSRS & FERS RETIREMENT PLANNING GUIDES: How to calculate your annuity (with plenty of easy-to-follow examples) Eligibility requirements Different retirement types (regular, early, deferred, special disability) Credit for military service Deposits and redeposits Cost of living adjustments The effect of divorce on annuities Social Security The Thrift Savings Plan Taking health and life insurance into retirement Annuity taxes Survivor benefits And much more! *********************************************************** Go to http://www.fedweek.com/pub/index.php to place your order now and get your FREE Your Strategic Guide to Investment & Financial Planning shipped to you immediately. *********************************************************** Other Ways to Order: You may also call our toll-free order line at (888) 333-9335 to place your order for these retirement planning guides: Go to http://www.fedweek.com/csrs.htm to order your CSRS Retirement Planning Guide Now. Go to http://www.fedweek.com/fers.htm to order your FERS Retirement Planning Guide Now. Special Bonus: The first 10,000 orders placed for either of these CSRS and FERS Retirement Planning Guides will receive a FREE Your Strategic GuideTo Investment & Financial Planning. Please pass this information on to your fellow colleagues. Or you may also mail your order with payment of $13.95 ($9.95 plus $4.00 s&h) to: FEDweek P.O. 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]
