Did you take any fun trips over the summer? Do you have anything interesting planned for the fall? As you make the most of your welldeserved retirement, the former management officer in me encourages you to pause briefly to take stock of the financial and bureaucratic aspects of your retirement plan. Here are important action items: Review your investment portfolio. If some of your retirement income derives from the Thrift Savings Plan, an IRA, or other financial investments, it would be prudent for you to check how they have been doing in the last few years in the face of high inflation. Investing in stock funds with relatively high average rates of return will increase the chances that your investments will generate gains that outpace inflation over time, but they also put you at risk of short-term losses during stock market downturns. To set the risk-versusreward balance in your investments, consider your time horizon (i.e., how long do you or your survivor expect to depend on that income?) and your risk tolerance (i.e., would a sudden market downturn keep you awake at night?). Brief your survivors. Because our family members are often unfamiliar with offices and functions in the foreign affairs agencies, AFSA created a list of steps Reviewing Your Retirement Plan Contact: naland@afsa.org 62 SEPTEMBER 2024 | THE FOREIGN SERVICE JOURNAL to take in the event of the death of a Foreign Service retiree, spouse, or ex-spouse. That list is included in the 2024 AFSA Directory of Retired Members and is posted in the Retirement Resources section of the AFSA website at https://afsa. org/retirement under “Directory of Retired Members 2024, select sections.” AFSA recommends that you make a copy of the list, show it to your next-of-kin, and file it with your will. Watch for age milestones. Are you approaching age 62 and need to decide when to file for Social Security? Are you approaching 65 and need to decide whether to sign up for Medicare Part B? Are you approaching 73 and need to figure out what to do about required minimum distributions from your investments? The Retirement Resources page of the AFSA website has information on these topics, including videos of presentations by experts. Act after a relationship change. Post-retirement marriage relationship changes, such as divorce or death of spouse, are occasions to take actions such as changing your survivor annuity election or updating your beneficiary designations. Some of those steps have deadlines for action. For more information, see the Department of State Office of Retirement’s Annual Annuitant Newsletter posted at https://RNet.state.gov under the “What’s New?” tab. A copy is also posted on the Retirement Resources page of the AFSA website. Review your FEHB plan. Many Federal Employee Health Benefit (FEHB) plans have recently, or will soon, implement substantial changes affecting Medicareeligible retirees. Even if you have had the same FEHB provider for years and have been happy with it, changing to another plan next year could potentially save you money. When the next FEHB open season starts in early November, AFSA will help you weigh your options by giving you access to The Checkbook, a great tool for comparing FEHB plans. Members will receive an email providing online access in mid-November. Keep informed. If you have not at least skimmed through the Office of Retirement’s 2024 Foreign Service Annual Annuitant Newsletter, please take a few minutes to do so. It contains important official information regarding your federal retirement benefits. In addition, AFSA’s Retirement Resources webpage has nearly 100 documents, videos, and links to information on retirement benefits. AFSA’s annual retiree directory includes 20 pages of guidance on retiree issues. Finally, AFSA periodically offers programs on finances, such as last March’s program, “Investment Primer: Managing Your Retirement Portfolio for Income, Growth, and Safety,” with Certified Financial Planner William Carrington. This webinar can be found on AFSA’s Retirement Resources webpage under “Getting Ready for Retirement.” Support AFSA. Help AFSA defend both the activeduty Foreign Service and your earned retirement benefits by maintaining your AFSA membership. If your membership depends on you writing a check each year, please consider switching from annual billing to paying dues via annuity deduction. Switching will save AFSA money and ensure that your membership does not inadvertently lapse due to lost or unnoticed mail. Email member@afsa.org for more information. n RETIREE VP VOICE | BY JOHN K. NALAND AFSA NEWS AFSA Governing Board Meeting, June 12, 2024 The Governing Board met on June 12, 2024. While there were no items to vote on, the board discussed upcoming issues and events of interest, such as Foreign Service Night at Nationals Park on Friday, Sept. 27. n
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