Changes to the TSP L Funds and Finance Friday Articles
There were a lot of great articles during the last week, so I apologize for the number below, but they are all great reads.
Also of note this week is that it’s time to decide whether you go for the new Blended Retirement System and this Thrift Savings Plan notice:
Changes coming to the Lifecycle (L) Funds — (November 29, 2018) We are planning adjustments to the L Funds in an effort to improve your investment outcomes. Effective in January 2019, we will increase exposure to international stocks (the I Fund) from 30% to 35% of the overall stock allocation in all L Funds. The L Income Fund stock allocation (C, S, and I Funds combined) will increase from 20% to 30% over a period of up to 10 years. The L 2030, L 2040, and L 2050 overall stock allocations will hold steady for a period of years before resuming their transitions from stocks to bonds. In addition to improving investment outcomes, this pause will align the L 2030, L 2040, and L 2050 Funds with the L 2060 Fund, which will be introduced in 2020 with an initial stock allocation of 99%. Visit Lifecycle Funds to learn more.
The L Funds are getting riskier, which is probably a good thing.
Here are this week’s personal finance articles:
2019 Contribution Limits and the Changes Impacting Your Retirement
6 Tips For Those Who Have Enough
7 Behaviors of the Wealthy (and How I Copy Them)
7 Ways To Increase Your Savings Rate
Best Stocks for 2019? Let’s Look At The 2018 Stock Picks First!
Doing Nothing About a Market Decline
Four Reasons To Hire A Financial Advisor
How the Bogle Model Beats the Yale Model
How to Retire Forever on a Fixed Chunk of Money
Physicians Want to Know How to Pay Off Debt Or Invest
Tax Code Changes You Should Know: What’s New for Homeowners
Tax-Loss Selling: A Silver Lining in Volatile Markets
Three Ways “First, Do No Harm” Applies to Personal Finance
Why You Should Not Give Up On Public Service Loan Forgiveness
Powerpoints from Last Week’s Specialty Leader Business Meeting
Last week was the Specialty Leader Business Meeting, which is always held in conjunction with the GME Selection Board. If you want to see the following Powerpoint decks, they are available on the Medical Corps Sharepoint Site (pick your e-mail CAC certificate or it won’t open for you):
- DHA Organizational Update
- Finding Joy in Work
- GME Interdependency Brief
- GME Overview
- Military Unique Curriculum
- PERS Pearls
I would post them, but the one about DHA is labelled “for internal use only” and there are too many authors of the other ones to get permission to post them on the blog. Because of all the change going on, I wanted to call attention to their availability.
Four Interesting Reads from Today’s Early Bird – Feres Doctrine and the Future of Navy Medicine
Here are four articles from this morning’s Early Bird of particular interest to those in Navy Medicine:
DoD hopes medical realignment will help prepare for fight against global powers
Navy Medical Corps Worries Future Funding Cuts Will Result in Fewer Doctors
Petition Calling Congress To Change The Feres Doctrine Reaches 17,000 Signatures
Vice Adm. Forrest Faison Discusses the Future of Navy Medicine at AMSUS
GAO Report on Military Medicine
There was a recent Government Accountability Office (GAO) report released that talks about the structure and deployment of military medicine. Here are the 1 page summary and full report, but a summary of its findings is:
The military departments each have their own processes to determine their operational medical personnel requirements; however, their planning processes to meet those requirements do not consider the use of all medical personnel or the full cost of military personnel. Specifically:
- The Department of Defense (DOD) has not assessed the suitability of federal civilians and contractors to meet operational medical personnel requirements. Federal civilians and contractors play key roles in supporting essential missions, i.e. providing operational assistance via combat support. Military department officials expressed a preference for using military personnel and cited possible difficulties in securing federal civilian and contractor interest in such positions. An assessment of the suitability of federal civilians and contractors could provide options for meeting operational medical personnel requirements.
- When determining the balance of active and reserve component medical personnel, the military departments’ processes generally do not consider full personnel costs, including education and benefits. Specifically, officials stated that the Army and the Navy do not consider personnel costs in their assessment of the appropriate balance between active and reserve personnel, and the Air Force’s analysis had some limitations. DOD policy states that workforce decisions must be made with an awareness of the full costs. Further, in a 2013 report, DOD identified the cost of unit manning, training, and equipping as one of five factors that play a key role in decisions concerning the mix of active and reserve component forces. By developing full cost information for active and reserve component medical personnel, DOD can better ensure an appropriate and cost-effective mix of personnel.
The military departments have taken actions, such as establishing policies and procedures, to assess the appropriate workforce mix for beneficiary care within Military Treatment Facilities (MTFs), but challenges remain. The military departments distribute military personnel across the MTFs and then use policies and procedures to consider risks, costs, and benefits to determine how to fill the remaining positions with federal civilians and contractors. However, a number of challenges, including lengthy hiring and contracting processes and federal civilian hiring freezes affect DOD’s ability to use federal civilians and contractors. For example, senior officials at each of the six MTFs that GAO spoke with cited challenges with the federal civilian hiring process, and five of six MTFs cited challenges with the contracting process. As a result, senior officials from five of six MTFs reported discontinuing some services and referring patients to DOD’s TRICARE network of private sector providers or Veterans Affairs facilities. The Military Health System (MHS) is also preparing for the phased transfer of administrative responsibility for MTFs to the Defense Health Agency (DHA), including management of the MTF workforce. According to GAO’s report on agency reform efforts, strategic workforce planning should precede any staff realignments or downsizing. However, according to a senior official, the DHA has not developed a strategic workforce plan. Without developing such a plan, the DHA may continue to face the same challenges experienced by the military departments in executing an appropriate and efficient workforce mix at its MTFs.
Finance Friday
Here are this week’s personal finance articles:
Counting Down (a discussion about end of the year financial housekeeping)
Daylight Robbery (real life stories of bad things financial advisors have done to clients)
Financial CME #8: Test Your Knowledge
Is it Time to Take Some Money Off the Table?
Some Advanced 2018 Continuing Financial Education Reading
The View From Here (a discussion of how you should react to the recent stock market drop)
2019 Female Physician Leadership Course
Here are the documents with information on this course:
Update on the New Fitrep System
The Navy released a NAVADMIN on the upcoming revamped fitness report and evaluation system. Here are the highlights:
- The new evaluation system will place emphasis on merit over seniority or tenure. It eliminates forced distribution with relative ranking against peers in categorized groups within a command and instead rates the performance of a Sailor on paygrade based objective standards. These standards are captured in trait categories that reflect key attributes of professional competence and character.
- Sailors are evaluated on value statements within these trait categories using an expanded 9 point scale for greater accuracy and distinction. The evaluator responds intuitively during a short, timed window when providing a score for each value statement. This approach will apply to both the proposed coaching and evaluation processes.
- The plan is to introduce this new design concept across the entire Fleet with an updated coaching phase while still using the current fitness report and evaluation system before they transition to the new evaluation process. They will deliver the coaching portion of the new system in mid-2019 and the evaluation portion soon after.
- There’s also a PPT slide deck that shows you some screen shots of what the new tool looks like and how it works.
Finance Friday Articles
Recently there was a NAVADMIN about how time is running out to elect the Blended Retirement System (BRS). You have to opt-in by the end of the year if you are BRS eligible.
If you’re not sure if you are BRS eligible, read my article on the White Coat Investor site.
Here are the Finance Friday articles for this week:
A Little Perspective (an article about the recent stock market drop)
Continuing Financial Education (CFE) Week 2018
Deadly Serious (an article about why you need an estate plan)
Disability Insurance For Female Physicians: The Agony Of Defeat
Should You Track Your Net Worth?
Tax Code Changes You Should Know: Deductions, Exemptions, and Credits
The Key To Financial Success As A Doctor – Staying Hungry
WCI’s Fire Your Financial Advisor Course in Action: A Couple Creates Their Financial Plan