Question
This segment takes us just to the edge of answering what our benefits look like in retirement. Didn’t answer: will the government continue to contribute to health insurance? What happens to basic life? Do we lose our supplemental life – is there an option to keep it? I heard that we should look outside for life but not whether we can keep it.
Answer
Yes, as of now the government will continue to pay their portion of your health insurance premiums in retirement. For those not aware, the government pays about 70% of your health insurance premiums during your career and in retirement. There has been no talk about removing this benefit as far as I know.
And when it comes to your life insurance you can choose to keep it in retirement if you’d like. However, because of the increasing cost over time many feds choose to get insurance another way. You can find more info here: https://hawsfederaladvisors.com/getting-the-most-of-fegli-federal-employee-group-life-insurance-the-ultimate-guide/
Question
Are you folks fiduciaries?
Answer
Yep, sure are. Basically what fiduciary means is that we are legally obligated to give advice that we believe is the best for our clients.
Question
How do the three major markets (Dow Jones, S&P, NASDAQ) correlate with the different TSP funds? Sometimes I see the Dow Jones increase for the week, but my C fund still decreases. Is the S&P correlated to the S fund?
Answer
The C fund tracks the S&P 500 which is 500 big to medium US companies. The S fund tracks the Dow Jones U.S. Completion Total Market Index which is thousands of small to medium US companies. The I fund tracks the Morgan Stanley Capital International Europe, Australasia, and Far East Index which is a number of non-US companies in many developed countries. The F fund tracks the Bloomberg Barclays U.S. Aggregate Bond Index which includes most bonds in the US. The G fund tracks US Treasuries.
