4:11 am, May 28, 2015

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  • The G Fund very sad
    Lyle L.
    Hello, I'm almost 68, and have 25 years with the Federal Gov and all of my money is invested in the G Fund and every first Tuesday of the month I see the G fund drop in earnings very, very sad! I have three years to go before I can retire like most of us who have to stay beyond 65 my question is should I keep all of my money in the G fund and ride it out till the end or should I take about 25% of it and put it in the C fund? I'm so afraid to do this again the G fund has become such a joke with the little interest it earns do I take a chance and put the 25% in the C fund. Thanks, L H Lindberg
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  • G fund
    PAULE
    What are you talking about; the G fund has never gone down. The amount the fund increases every month varies but the fund itself has never gone negative like the other funds can. Stay in the G you don’t seem to know enough to do anything else.
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  • pay for advice
    khp3655
    The g fund does not lose money. it just makes very little. It doesn't even keep up with inflation right now. On the other hand, it is the only fund with practically no risk. For someone like you, there are free and pay sites on the Internet that will tell you what to do. I suggest you check them out. good luck.
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  • Risk v reward
    Moderate
    You said it best. That is true with TSP or regular money. The higher the potential rate of return, the greater the risk. It is his decision and no one else's.----At 67, he might be conservative about his risk
    worker
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  • G fund, earnings vrs value
    Retired Berkeley Engineer
    "every first Tuesday of the month I see the G fund drop in earnings" Perhaps Lyle L meant that the earnings rate (ie 3% one period and 2% the next) is reduced. It is possible for a fund to experience a reduction in earnings "rate" without decreasing in value.
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  • Wait for the next crash and buy C or S Fund
    contrarian
    I would stay out of I or F.
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  • Do what is comfortable for you
    Linda
    Paule, you need to do what you are comfortable with. Do go to the higher risk if you don't feel you have time to recoup a loss. There are financial advisors out there who deal with Federal Issues, but they probably want you do invest separately with them as well. My advisor does a good job, be ause she looks at my options, my husbands 401(k) options and then adjusts his IRA to work the best for us and what we want. Some people are not happy with risk. If you are one of those, don't change. But it is all a personal decision.
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  • How about the L Funds?
    FrogLady
    How about using the L Funds? You project when you will need the funds, and they balance the risk for you. The riskiness of the investments increases the farther away the need, and decreases as the time grows nearer.
    { "Agree":"1","Funny":"1","Insightful":"1","Disagree":"-1","Offensive":"-1","Troll":"-1" }
  • Pension
    Bud
    I'm CSRS retired with 36 years.Retired at age 56.We had our children at a young age so retirement at 56 was after paying college bills,wedding bills,etc.Looking back with 20/20 hindsight,I should have retired at 55 on first eligible day.Why?I did the math.Not having to pay 7% CSRS contribution,1.45% Medicare,commute costs,state/city income tax,excluding a portion of pension from tax each year,lower fed tax rate,etc.The math showed I was working for about minimum wage.Sounds incredible,but my advice is for each person to do the math;it'll surprise you if you're a CSRS type.
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  • some people need that minimum wage
    contrarian
    So they work full time even though they could stay home for 80% of their take home.
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  • pension
    Bud
    contrarian-it's an individual choice and everybody has their own situation.Our financial obligations had already been paid.So out I went.
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  • To Contrarian
    Moderate
    You keep on writing about 80%. We do not get 80%. We may not even get 80% of take home. Do the computations. I will have 40 1/2 years in and I estimate my gross pension to be almost 70% of my high 3. This is before sick leave which will add about 3% to my pension. Yeh, I saved it for an emergency that thankfully never came. And yes I believe the CSRS plan is much better than FERS. And yes, I am working for minimal income, but will reach what i want for a pension next year.
    worker
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  • Help with your computation
    GR82BMRA
    Moderate, if you 40.5 years of service your high-3 percentage is 77.25. CSRS has basic annuity comp has three components: A) 1.5% of the high-3 for first five years of service; B) 1.75% of the high-3 for the second five years of service; and C) 2% of the high-3 multiplied by all years and full months of service over 10 years. In your case: (1.5 x 5)+(1.75 x 5)+(2 x 30.5) = 7.5 + 8.75 + 61 = 77.25. If your sick leave credit comp is correct you'll have 80.25% of your high-3. And for the record, CSRS maxes-out at 80% with 43 years of service (and the sick leave credit adds to this). My thoughts on CSRS v FERS: CSRS is better only if the FERS employee fails to max-out TSP contributions and didn't stick to a conservative investment plan. My comps, using the historical rates of return (which is of course no indication of future returns) showed the L funds are a safe bet and have the potential to provide a pension greater than CSRS after a 30-year career.
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  • To GR...
    Moderate
    Are you married? if so, you must know about the survivor benefit. That is 3% of the first $3000 and 10% of the remainder. That is why I used 70%. And I commented about the sick leave which will add about 2.7% to my pension.---For your information the 80% figure, before survivor benefit, maxes out at 41 years 11 months (42 years would equal 84%-3 3/4%) And yes, sick leave is added to the max if that is where you are at.----As to which plan is better, it is an opinion questions. I like CSRS because it is more definitive Your TSP depends on contributions and returns on investment. Just out of curiosity, when you say maxing out, do you mean contributing $15000 or so, or do you mean getting the maximum match. If you mean the former, most of us have families to support and cannot afford the $15000+ contributions per year. Additionally, you are depending on historical returns on the market. I would rather have a definitive amount of pension. This is my opinion only and is far from gospel.
    worker
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  • Thanks Bud
    Fed1979
    That's all I needed to hear to know I am doing the right thing. I turned 55 in July and have 33 years of service. I am out of here!
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  • Pension Equaled Takehome Increase
    ben
    Bud, I took retirement after 40 years and 5 months as a CSRS (plus 10 months unused sick leave). Once pension, medicare, life insurance, retirement, TSP, and state income tax (my state doesn't tax federal retirement) were no longer deducted, my annuity takehome was higher than my takehome pay when I worked.
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  • Should I stay or should I go?
    Rock Man
    I believe those were the lyrics to a country song way back in the day. Anyway, Mike was right he said that "some" Feds might have an advantage when they retire, but not many. But when your high-3 salary calculation exactly equals your current salary, it's something to think about... and that is about as far as it goes. Unless you absolutely cannot stand your current work environment, stay as long as you can and keep adding on service time. Whatever conditions are ailing you in your work environment, chalk it up to "entertainment value" on the job. Hang in there, but watch this election closely... a certain party is gung-ho on slashing our compensation and benefits... and if that happens, watch for the mass exodus.
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  • Pays to go!
    Bill Samuel
    Yep! I'm retiring December 31. No more take home pay going down each year.
    Bill Samuel Silver Spring, MD 20906
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  • Good luck
    Moderate
    Good luck and enjoy. And congratulations
    worker
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