Tag: FEGLI

Federal and Postal Employees – Choosing a Financial Professional

The Thrift Savings Plan (TSP)

Is All ‘Your’ TSP Money Actually Yours?

How To Best Fund Your TSP

Will Spending Be The Same In Retirement?

Thrift Savings Plan (TSP) Withdrawal Options

Federal Retirement Spending Habits

For Federal Employees, spending will change in retirement. Some federal retirees will spend more and some will spend less based on their individual financial situation. It is useful to note that expenses today may not be expenses tomorrow. Therefore, some projections and forecasting is needed when looking at spending in retirement.

Expenses like transportation and food costs may go down. If you don’t choose to work or even if you work part-time, you will probably not spend as much money in transportation as you did before. Your budget for clothing may also decrease. Entertainment and social activities may go up or down. Because you are retired, your social calendar may not be as busy. But, on the other hand, because you are retired, your social calendar might be completely filled because you do have more free time.

Medical Expenses and Life Insurance in Retirement

Let’s take a look at medical expenses in retirement. Those expenses will probably go up because it seems to follow that as we get older, we require more medical attention. Conversely, taxes will probably go down because you will no longer have payroll taxes for Social Security and Medicare if you don’t have earned income after retirement. For instance, someone earning $60,000 in 2009 might have paid $4,590 for Social Security and Medicare Taxes, but will pay zero dollars in retirement if there is no earned income. The tax savings could also help to replace some of the salary we will need to cover in retirement. Savings should be aggressive prior to retirement. Your cost for life insurance, FEGLI or private compay life insurance, may also decrease – you should compare your FEGLI coverage and costs again private life insurance to make sure you are getting the best deal.

There are many ways in which our expenses and income may fluctuate in our retirement years. But knowing what we know, it is prudent to aggressively save prior to retirement and even more prudent to aggressively pay down debt prior to retirement. Carrying heavy debt into retirement is a disaster waiting to happen. Reducing your debt lowers interest and increases your net worth. If you have a very high debt: income ratio you will have to spend a lot of money just paying interest.

I know you are still thinking about your vision for retirement. What about insinuating “some magic dust” into your vision —- living debt free before you reach retirement? Imagine how much bigger and fantastic your vision could be if you had no heavy debt to carry around with you. A rule of thumb is to lay out your entire debt ranking the order in which they should be paid. You pay off debt with the highest interest first and then you put off the debt with the lowest interest last until you have paid everything off.

You don’t want to pay off your mortgage unless you have a lot of disposal income because you may need the tax advantages from the mortgage payment. If I had enough money to pay off my mortgage, I would do a very careful analysis of the pros and cons before taking the next step of paying off the mortgage. Paying off a mortgage might be the right thing to do for some and not for others. Each person’s financial circumstances is uniquely different. Try living by this “mantra” – What I cannot pay for in cash, I cannot afford, mortgages aside. You will be amazed how living by this mantra will curtail spending. Decision-making strategies must always be utilized when spending your money. Sometimes credit gives us too much flight to fantasy. We all need credit, but how we handle it will be key to our retirement success.

Remember when it was assumed when one retired the mortgage would also be retired. That is not always the case now-a-day. Having to make large debt payments out of a limited retirement income can easily sour one’s financial picture in retirement. Every effort must be made to leave debt behind as you move into retirement. Having a vision and dreams for retirement has associated costs. If you pay down your debt then you will have money that is not obligated for expenses to spend the way you want. It is called your vision and dream cache. The more savvy you are at managing your finances, the better that cache will look and feel. Most retirees talk about being able to travel. That is an expense that is outside of the normal day-to-day expenses especially if the travel is extensive. So we have to be very careful in planning our trip and making sure we are comparison shopping.

P. S. Always Remember to Share What You Know.

RELATED TSP ARTICLES

Federal and Postal Employees – Choosing a Financial Professional

The Thrift Savings Plan (TSP)

Is All ‘Your’ TSP Money Actually Yours?

How To Best Fund Your TSP

Retiring In Less Than One Year

Thrift Savings Plan (TSP) Withdrawal Options

Consider the following if your retirement plans are less than one year away.

Is there any way that I could be indebted to my employer?

If you have outstanding travel advances.
Overpayment of salary that has not been resolved.
Indebtedness for failure to return government property or for damage to government property.
Advanced leave.

**When and how do I waive my military retired pay?**

If you would like to waive your military retired pay to receive credit for military service in the computation of your benefit, you can write to the Retired Pay Operations Center at least 60 days before your planned retirement. Send your waiver to:

Defense Finance and Accounting Service

U.S. Military Retirement Pay

P.O. Box 7130

London, KY 40742-7130 or you can “fax” your request to (888) 469-6559

**What Is The Maximum Federal Retirement Benefit I Can Receive?**

The basic civil service retirement annuity cannot exceed 80% of your high-3 average salary, excluding your unused sick leave. The 80% limitation is typically reached when you have 41 years and 11 months of service, not including accumulated sick leave.

Law Enforcement Officer (LEOs) Retirement Annuities

Law Enforcement Officers (LEOs) may under special computation provisions receive the 80% limit with fewer years of service.

Service beyond the years which provides the maximum benefit will not be used to compute your Law Enforment Officer annuity. The retirement contributions you made during those years will be automatically refunded to you with interest at the rate of three percent per year, compounded annually. You have the option of using the refund to purchase additional annuities as if the contributions and interest are voluntary contributions.

However, if you have federal civilian employment periods when you did not contribute to either or FERS, excess contributions are automatically applied toward any deposit due for those employment periods.

How do I find out if I am eligible for Medicare coverage?

It is recommended that you contact the Social Security Administration at least three months before you reach your 65^th birthday to apply for Medicare Benefits. The Social Security Administration will have the records pertaining to your eligibility for Medicare coverage. If there is a problem locating your records either you or your employer can obtain a statement of your earnings by writing to:

General Services Administration

National Personnel Records Center

Civilian Personnel Records

111 Winnebago Street

St. Louis, Missouri 63118

Your request should include:

Your name as shown on your payroll records;
Your date of birth;
Your Social Security Number;
Your complete mailing address;
The years for which earnings are needed;
The name and location of employer for each year;
State clearly the reason for the request;
Affix your written signature; and,
Write a statement declaring that all other sources of information have been exhausted.

When should I choose my exact retirement date?

If you have not already done so, start thinking about choosing your exact retirement date. Your benefit can be estimated based on the exact date you choose. Remember OPM cannot give you the best estimate until you have actually applied for retirement.

When should I complete my application?

You should carefully read all of the information in the application package and submit the forms. You do not need to submit a resignation letter. Your completed and signed application is equivalent to a resignation. However, if you are eligible for benefits, you should not resign with the intent of retiring at some later date. If you were to expire after separation but before filing your retirement application no life insurance, no survivor benefit and no survivor health insurance coverage would be available to your survivors. All other exit procedures required by the agency should be followed and completed.

Should I check on my military service deposit?

Your human capital office will verify with your payroll office that the deposit to give you credit in your annuity for military service you performed after 1956 has been paid, or that arrangements have been made for complete payment before you leave the agency’s rolls.

Should I sign up now to receive my retirement payments by direct deposit?

If your retirement records are electronically transmitted by your employer via the Data Exchange Gateway (DEG), the account information for direct deposit will be sent automatically. If this is not the case, then you must submit with your retirement package, a request to receive payments by direct deposit. A letter can be submitted or SF 1199A with the application. SF 1199A can be obtained from your financial institution.

Direct deposit is generally not available to persons with a permanent address outside of the United States, except for Canada. Persons with permanent addresses outside the United States may request direct deposit to a financial institution in the United States.

P. S. Always Remember to Share What You Know.

TSP ARTICLES

Federal and Postal Employees – Choosing a Financial Professional

The Thrift Savings Plan (TSP)

Is All ‘Your’ TSP Money Actually Yours?

How To Best Fund Your TSP

Budgeting And Federal Employee Financial Plans

LiteBlue; Online Access to More Than Just Your USPS Earnings Statement

For Federal and Postal Employees, building a budget carries equal weight to building a financial plan.

Envision constructing a house – The financial plan is the front door to your dwelling and the budget is the back door, both are necessary if you expect to be safe and secure.

Having a sound financial plan and a budget are paramount to a successful retirement future. Having a budget allows us to direct money towards goals we establish in our financial plan. The budget acts like a navigation system, it directs our course, but only if we stick to it. Sounds familiar, a financial plan only works if you follow it and a budget is only a good navigator if you heed the directions given. A budget, like a financial plan is not etched in stone, but is meant to be flexible and SMART.

**Primary Elements of a Federal Employee Retirement Budget**

There are two primary elements to a Federal Employee retirement budget – income and expenses. Income may be derived from various sources: employment, interests from savings and investments. Expenses are summed up in our wants and needs. There must always be a very careful balancing act between income and expenses. When expenses become more than income, we run the risk of running out of money and that is exactly what we don’t want to do in retirement or at any other time for that matter. The budget helps us to rein in spending and make wise choices that will keep our income and expenses in harmony.

As we approach retirement it will become even more critical that we recognize what our spending habits are and employ definite strategies to ensure they fit into our financial plan and are guided by a sound budget.

When we spend money it is generally for expenses that are either fixed, variable or occasional. Most of us spend money and then think about saving what ever is left over. When we mentioned earlier the concept of PYF or pay yourself first, it is meant to do exactly that. Pay yourself first in the form of savings right off the top of your income. It need not be a particularly large amount, but it must be defined and consistent. Savings must be entered in the budget as a part of “fixed” expenses. If we treat “savings” as a variable or occasional expense, it is very clear that we will be met with significant challenges in meeting our financial goals in the future.

Federal Employee Retirement Budget

Creating a budget is easy enough. We need only list all income against all expenses to see where we stand. If expenses outweigh income, then we need to make some immediate adjustments. Most of us simply run out of money or find that we don’t have enough, without outlining everything in a budget so that we can actually see how we are spending our money. SMART budgets must be updated regulary throughout our lives. Remember as events change in our lives, we will very necessarily have to adjust our budget, our financial goals and the way we spend money.

There are many software programs that will allow you to monitor your budget and to stay on track by keeping your expenses and income in a spreadsheet. A budget is your spending plan about what you can do with your money. Warren Buffet knows exactly how much money is coming in, how much will be spent on bills and day-to-day expenses and how much to set aside for meeting large financial goals. People who are SMART with their money, no matter how much or how little, know where their money goes because they have a plan.

Once you build a budget you will know that you have mastered the objective of creating a budget when your budget is balanced to show that total income equals total expenses and that your budget supports each of your financial goals. It’s your money. You have worked hard for it and now you must make it work SMART for you!

P. S. Always Remember to Share What You Know,

LiteBlue Related Pages

What Is LiteBlue?

PostalEase / LiteBlue

What Postal Employees Should Do On LiteBlue Before Retirement

Changing Your LiteBlue / PostalEase Password Through ssp.USPS.gov

eRetire for Postal Employees – Retirement Applications on LiteBlue

Statements to Answer and Get You Thinking

Sometime we need a little nudge, some motivation to get our engines pointed towards painting a picture of our retirement future. The following statements can assist in setting the parameters for both our plan and individual action plan.

I have a definite strategy to SAVE. ___
I have clearly written down all of my financial goals for retirement. ___
I have a spending plan for all sources of income. ___
I have a plan for reaching my goals for retirement. ___
I always review my goals before spending. ___
I have clear plans as to how I will spend any unobligated funds before I spend impulsively. ___
I have a budget that I monitor now and will continue monitoring my budget in the future. ____
I know exactly how much money I can spend on clothing monthly and yearly. ____
I know how much money I can spend for eating out and entertainment. ____
I plan ahead for times of big expenses, i.e., replacing the furnace or AC unit, purchasing a new car, major car repairs, home repairs, etc. ____
I have a plan in place for unexpected expenses. ____
When I must make a major purchase, I do comparison shopping. I test the market. ____
All of my purchases are part of my plan for reaching my retirement goals. _____
I set aside some money to spend as I please, only after paying myself first (PYF). ____
I have emergency funds set aside equal to at least six months of living expenses. ____
I have begun a sensible debt reduction plan. ____
I pay off the entire monthly balance due on my credit cards to avoid paying interest charges. ____
I know the difference wants and needs and I prioritize needs over wants. ____
I know the rate of interest I am receiving on all savings accounts. ____
I follow and monitor the rate of return on my investments. ____
I understand what my investments mean and the risk associated with them. ___
I belong to a credit union to reduce transaction costs in conducting my financial affairs. ____
I determine the amount of money I can spend on a car and secure financial for that amount before selecting a car. ____

Give yourself one point for each item you have already taken action on. Add up your score and see how far you need to go to put your plan of action in motion.

P. S. Always Remember to Share What You Know.

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Federal Employees and Financial Planning

Definition: A financial plan is a thought process based on what each person considers important and necessary in their life.

A financial plan helps to identify what we want, how to get it and how to keep it. The financial plan drives the entire process and is the determing factor as to whether you successfully reach your retirements goals. In devising a financial plan, we must make choices in order to maximize our ability to accomplish our goals with varied resources in our retirement years. We measure our values, those beliefs or ideas we consider important or desirable. Our values have a lot of influence on our goals, choices and decision-making. As we grow older our values will most likely change.

When we make decisions, circumstances and events in our lives often cause us to make other decisions based on decisions we have already made. In essence, one decision can bring about the need to make additional decisions. In the economic world, those decisions are called “Satellite” decisions.

In making decisions we often have to make trade-offs. We give up something now to get something better tomorrow that will ultimately benefit us in the future. We save now so that our retirement years will be spent in comfort and security. The trade-off is defined as an “Opportunity Cost.” Planning for our retirement future requires a basic lesson in finance and economics as demonstrated by some of the terms we will use in our discussion.

There are 3 kinds of people when it comes to spending money. There are those who live from paycheck to paycheck. There are those who never have enough money and then there are those who absolutely ‘Get it.’

The people, who absolutely get it, didn’t just by some click of a pair of ruby slippers suddenly end up in OZ, a stratosphere off-limits to the rest of us; they had a financial plan and they followed the plan. They understand that goals must be Specific, Measurable, Attainable, Realistic and Time related – the Goals must be SMART.

The folks that get it also understand the ‘Reality’ of resources in that they are limited or different at best, specifically in retirement. They exercise self-control and “Restraint’. They are not impulse spenders. They also know the benefit of accepting ‘Responsibility’ in financial planning rather than taking on the consequences of not having a plan.

Equally as important, people who get it, know intimately the value of saving for a rainy day. They spend within or below their means and are not reluctant to share with others. Renowned financier and philanthropist, Warren Buffet, reputed to be one of the richest men in the world once stated on an interview with Larry King, former CNN TV personality, “I don’t need to spend a lot of money on clothes or houses or that kind of stuff, a comfortable pair of jeans and T-shirt is ok.” Eccentric he maybe, but he gets it because he has a plan that evolves as circumstances in his life change.

Building your financial plan must incorporate a high degree of flexibility because changes in your life’s circumstances are inevitable.

P. S. Always Remember to Share What You Know.

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Financial Planning – You Know More Than You Think

Many individuals shy away from talking about financial planning because they think it is too far above their heads. Not so. Families are engaged in financial planning daily. Mothers and Fathers determine what they can spend on groceries, housing, education, transportation, health care and a number of other aspects important to running our lives. The fear sets in when we are asked to formalize our plans. Here are some hints to help you get started.

Inquiring about what we want and need to know requires an examination of what you already know about financial planning and money management. We each have our own frame of reference about money, spending, saving and just a general attitude about money. We learn about money and spending habits from a number of places and people in our lives. Should we spend a lot of time thinking about money and planning, will it simply take care of itself, is it a skill that we need?
Gathering and assembling the information we need is where we utilize our investigative and discovery skills. We are able to mesh newly discovered information with information we already know; and build upon our skills to become more educated and informed about managing money into retirement; and ensuring that it lasts as long as we last.
Processing the Information takes us from theory to reality via integrating and making sense of the two previous concepts by either utilizing or implementing the information.
Studying and Determining the Right Fit is part of the individual customization of the learning concept. How you plan and manage for your retirement future is not a cookie-cutter phenomenon, but a challenge and an opportunity unique to your own circumstances, needs, values and choices. We will move reciprocally a number of times between all of the steps before moving on to “Applying what we have learned.”
Applying what we have learned is making it happen, making it real and making it work to shape your best possible Financial and Individual Action Plan for Retirement that provides milestones that are flexible, stable, consistent and doable over the long-term.

You see you have already been involved in financial planning and managing your money. The question is have you planned and managed your resources well enough to live your vision in retirement. Being challenged by questions right before your eyes can be a great motivator to call your attention to things you need to do to secure your retirement future.

P. S. Always Remember to Share What You Know.

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The Thrift Savings Plan (TSP)

Is The Pension Survivor Benefit Best For You? by Todd Carmack

A Little-Known Opportunity Can Increase Your Retirement Income. by Mark Sprague

Federal Employees – Building Your Financial Plan

TSP (Thrift Savings Plan)

As a Federal Employee you may seek the advice of a Financial Planner, you need to do some homework towards building your financial plan. The Financial Plan is a key component of your overall Retirement Planning strategy, so you can retire well and live in comfort and security.

Some key items of what your Financial Plan should consist of:

– One SMART Short Term Goal (0 – 3 months)
– One SMART Intermediate Term Goal (3 months – 1 year)
– One SMART Long Term Goal (1 year plus)
– A quarterly record of how you get and use your money (you may choose to use a weekly or monthly record)
– A process of allocating your money by using the decision-making process
– Identification of at least 3 factors that might potentially impact your financial plan (factors may change from time to time)
– At least four strategies that will keep you firmly on your plan
– Process by which you can easily and clearly articulate how you will monitor and modify your plan.

Building your retirement plan in your mind is the first step to getting started, commiting it to paper (electronic or otherwise) is the first step to implementation. Your plan does not need to be anything technical, but a plan that you can work with; a plan that is not tossed outside but becomes the roadmap to securing your financial future in retirement.

Federal Employee Retirement

FEGLI (Federal Employees Life Insurance)

FEHB

‘High-3’ Income

Retirement Annuity Calculations

P. S. Always Remember to Share What You Know.

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Time to Gear up for the 2014 Open Season

August 12, 2014 /by Dianna Tafazoli

Flexible Spending, FEHB and FEDVIP

The Office of Personnel Management (OPM) has just announced that the 2014 open season will take place starting Monday-November 10, 2014 through Monday – December 8, 2014. This is the time to start thinking about your Flexible Spending Account, FEHB and FEDVIP. Flexible Spending Accounts require an annual reenrollment. If you are satisfied with your Federal Employee Health Benefits (FEHB) plan and no significant changes/life events have taken place, then there is no action needed on your part. However, if there are changes or you just want to try another plan – then action is required.

Even if you make no changes, use the open season schedule as a time to just check on things. Do I have everything in place just the way I want? Does the plan I have really answer my health care needs and those of my family? Although many dental and vision plans fail to do as much as we desire, it is certainly more advantageous to have a plan than not at all.

My dental plan allows $1500.00 per year and that can really take the edge off of expensive dental bills. The cost of dental care carries a hefty price tag. I had a root canal done and was fitted for a porcelain crown. I could not believe the cost. I had to call the dental accounts manager back and go over the services and associated charges because I was so baffled by the cost. The cost was over $3,000. It is still mind-boggling to me. With prices like that, it is certainly worth it to hang on to your dental insurance.

The FEDVIP vision plan is even better. I don’t use the vision except for an occasional pair of prescription reading glasses. The vision plan covers pretty much everything. I don’t like driving and especially night driving. I simply cannot see how to drive at night and don’t mention an unfamiliar place. My doctor on one of my annual visits, recommended distance driving glasses. They are wonderful and make driving a pleasure. I still don’t like driving and try to avoid it as much as I can.

Stay tuned for Open Season and make sure you are examining your profile and putting the things in place you need to enhance your life.

P. S. Always Remember to Share What You Know.

What is the Difference Between a Broker and an RIA?

July 29, 2014 /by Dianna Tafazoli

This question came into my mailbox. The writer said he asked his HR Director what was the difference between the two and she said she didn’t know. She gave him the right answer. HR Directors are usually not Financial Advisors and typically are not licensed (and therefore shouldn’t) offer investment or financial advice. They know retirement and may have a fairly sound knowledge about certain financial terms and instruments because of their knowledge of benefits. However, I find absolutely nothing unusual about the HR Director’s answer. She probably looked at the writer very strangely and wondered why he was asking her such a questions. We are going to take a shot at answering this question because of our financial literacy educational platform.

The difference between a broker and a registered investment advisor (RIA) has a lot to do with how that professional’s business is structured. This might sound a little unkind, but it is what I believe constitutes the most significant difference between the two. The broker is generally a representative who works for a brokerage firm selling securities. Brokers are not really financial advisors (regardless of the name they might call themselves), but are selling a product. The selling of products generally carries a commission, sort of like in the movie – The Wolf of Wall Street. The brokers, not to say they are not good people, but they truly have a motive to sell a product. The question becomes – Does their interest come before yours? Just a question to think about.

A Registered Investment Advisor (RIA) is required by law to not only give you suitable advice or recommendations, but must act with a tremendous amount of fiduciary responsibility. Both are regulated by the Securities Exchange Act of 1934 but to different degrees or operating parameters. RIAs are required to put the client’s interest first and not their own. In short – if you have a choice, a RIA may be your better option.

The most important requirement is making sure you are educated about what direction you want to take when it comes to financial planning and managing and transferring your wealth.

P. S. Always Remember to Share What You Know.

How Do You Know What Kind of Life Insurance To Buy

July 29, 2014 /by Dianna Tafazoli

The life insurance (FEGLI) that comes as a part of the benefits from your job is generally the only life insurance most people have. Is it enough or is it the right kind. That is a big question and a very important one. One of the gaps HR professionals need to fill, is explaining to federal workers the difference between term and whole life insurance. Too many workers have life insurance and fail to understand how it works and if they really need it.

What is life insurance for? Sounds a little off. I don’t think so. If we are going to have life insurance then we need to determine why do we need it. We also need to determine if the cost of life insurance outweighs the benefit. Do you want the life insurance to replace income? Do you want to use life insurance for final expenses or will it be used as a way to create financial wealth for your family.

Once you determine your purpose for life insurance then you can begin determining how much life insurance you need and what you can afford. When and if you do purchase an life insurance policy, always remember to revisit the policy as changes in your life take place, it might be necessary to review the policy to see if it still answers your intentions.

Federal employees have term life insurance (FEGLI). Do federal employees need life insurance other than what is offered through employment? That is a question to ponder. The thinking should follow: Do I need life insurance? What do I need it for? What do I want it to do for me? How much do I need? Is the life insurance for me or my family?

We highly recommend that you speak with a knowledgeable financial professional before making any financial or life insurance decisions

P. S. Always Remember to Share What You Know.

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Let’s Talk Federal Employee Life Insurance (FEGLI)

July 20, 2014 /by Dianna Tafazoli

Federal Employees Life Insurance – FEGLI.

This is really great stuff. Ever so often I talk about being inspired by a conversation or a question I have been asked. I don’t know why I deserve so many flowers. Each time I am inspired by someone, I consider it a flower, a rare and precious gift because that what being gifted with knowledge is. Today I was coaching a Federal employee about her FEGLI coverage and received the most wonderful gift from her when she said, “Now I am a full grown woman and this is the first time in my life that life insurance has really been explained to me.”

I was happy she had gotten what she needed, but disappointed that my profession, Human Resource Management of which benefits fall, had not done its job. I am very sensitive about the role of Human Resources and its awesome responsibility to a workforce. It is the Office of Personnel Management (OPM) that is charged with human resources oversight for the entire Federal Government. It is not the State Department or Treasury. Those agencies have another mission. So when employees tell me that Human Resources has not filled in the knowledge gaps about their benefits, I get a little concerned.

The Federal employee who is one of the best strategists I have ever met, wanted to know the difference between term and whole life insurance. That’s a great question since the Federal Government offers term life insurance (FEGLI) as a part of the Federal benefits package. We had some light banter about what could be done to ensure employees had enough information about their benefits to make informed decisions. I suggested employees engage Human Resources offices more, inundate them with questions. She said what good will it do if they don’t know the answers to my questions. She further stated that the Federal Government lost a lot of institutional knowledge about 20 years back when a number of highly-trained HR specialists retired.

I am not going to agree or disagree with that premise. I will say that the employee’s premise is one of the strongest arguments I have heard to support the extreme importance of effective succession planning. Employees in organizations are supposed to be like perpetual revolving doors. As one leaves and another enters only the body is vacating the premise, it should not be the knowledge required to do a job and the guaranteed continuity of service provision that is vacating the premise. People are not indispensable, they just aren’t and it benefits no industry to act as if they are.

All employees should be respected in the workplace and treated with a great amount of dignity. Employees should be applauded for their skills and abilities and rewarded. However, no single employee should be in control of the conch (shell) as in the novel, Lord of the Flies. The conch represented order and structure. Having knowledge begets order and structure. When employees do not have the prerequisite knowledge, order and structure is at risk so evident when people leave organizations having not properly passed the torch of knowledge. The civilization is left in disarray and order and structure is sacrificed.

We look to the Federal Government for order and structure. Therefore, Federal employees must not accept the rationale that the people who knew the information are gone and all is lost, but must demand that information keeps flowing no matter who leaves the beach. I got the opportunity in the end to tell her very precisely the difference between term life insurance and whole life insurance. Very simply I told her that term life insurance tends to be less expensive than whole life and it does not have a cash value, Most importantly, its value decreases with age, except if you choose a no reduction option in your federal benefits. Whole life insurance has a cash value and can be more costly. It is better to get insurance when you are young because the older you are, the more premiums tend to cost because of risk associated with aging.

She also asked if she should purchase the Government’s long-term care (LTC) insurance. I told her that LTC becomes pretty pricey after age 50. I suggested she be a wise consumer and check costs on the open market, compare rates with what the Feds are offering and make a decision before age 50. I am most willing to share information because that is what my profession dictates. However, individual choices are just that. You should only make decisions based on whether it is a fit or not.

P. S. Always Remember to Share What You Know.

Dianna Tafazoli

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