The Best Place for Investment Dollars

Making money on investment dollars seems harder than ever these days. Domestic savings account rates of return are near zero in some cases. Several European countries have even offered government securities that have a rate of return below zero percent. That means investors are actually paying for those governments to take their money.

While we aren’t quite near that point in the U.S., there is one bright spot that has shown great resiliency in a world of economic recessions and high unemployment. That bright spot is the Thrift Savings Plan.

As of August 16, 2012, year to date rates of return on the TSP are:

G fund:                0.91 percent

F fund:                3.83 percent

C fund:              11.12 percent

S fund:                8.53 percent

I fund:                 3.83 percent

What these figures show us is that no matter which investment vehicle we chose this year, all have made a return that exceed what would have been received by stuffing cash into a mattress. Additionally, it shows that one of the hottest markets to invest in worldwide is the United States. The C fund, consisting of 500 of the largest companies in the U.S., has greatly outperformed the Europe, Australasia and Far East index (I fund).

Where do you think the best investment opportunities will be in the future? 

A Perfect Opportunity

Companies have been sending catalogs in one form or another to eager purchasers for as long the Postal Service has been delivering mail. Catalogs give people a chance to peruse merchandise at their convenience wherever they want. One of these catalogs from Beyond the Perf allows collectors to view some of the latest stamp releases as well as a few unexpected surprises.

The current edition of the catalog, called USA Philatelic, displays currently available stamp designs from recent years along with related merchandise such as commemorative folios, stamped cards and envelopes, notecards, stamp yearbooks, and stamp collection binders. Some of this merchandise is also available on the www.usps.com website. What isn’t on the website is something that has a little more sparkle.

Nestled within the centerfold of the catalog is an opportunity to buy a precious metal version of three different stamp themes. The United We Stand, The Lunar New Year, and The American Presidents collections consist of multiple collectable silver ingot stamps layered in 24-karat gold. They can be purchased on a subscription-based system, automatically sending you a new one each month until you’ve received the entire collection. There is also a Remember Our Heroes pure gold stamp ingot that is 1.70mm thick made of pure Swiss gold that can easily catch a collector’s eye.

You can sign up to receive future editions of the catalog as they become available at www.beyondtheperf.com.

Trends in Global Mail Volume

The trend of mail volume in the United States is a subject that’s under constant review by stakeholders of the mail service. While it’s a good idea to keep an eye on our own direction, it’s worthwhile to take a look at overall global trends in the mailing industry to see how we compare.

 Much of the global slowdown in mail volume began in 2006. At that point in time, world-wide postal services delivered 433 billion pieces to addresses across the globe. U.S. volume consisted of almost half of that figure at 213 billion pieces. As of 2010, global volume shrunk to 376 billion or just under 14 percent. Total mail volume for the U.S. during that same year shrunk to 171 billion pieces, or approximately 20 percent.

 Mail volume shrinkage is projected to continue affecting global delivery for the foreseeable future. Although the percentage decline of U.S. vs. global volume fell at a slightly faster rate, the U.S. continues to represent more than 40 percent of total global mail volume.

Where do you see global volume figures by the year 2020?

What to Expect from Your Medicare Paycheck Deduction

Whenever we look at our paycheck stubs, we usually find one or more deductions reducing our bottom line. One of those deductions is for the Medicare program. While we’re able to see what that amount is on every paycheck, we don’t exactly see an explanation into what it buys. In the interest of learning a little bit more about our paychecks, let’s take a look at what we can expect from a modest investment into the program.

Individuals become eligible for Medicare benefits when they turn 65 years of age or have certain disabilities. The plan is split up into four parts:

-         A – Hospital Insurance. Includes qualified care in hospitals, inpatient care, hospice care, and home health care.

-         B – Medical Insurance. Includes medically necessary and preventative services.

-         C – Advantage Plan offered by private companies. Wraps up Medicare parts A, B and possibly D plus additional services depending on the provider.

-         D – Prescription drug coverage.

Most individuals receive benefits from part A when they become eligible for Medicare without paying a monthly premium for the coverage. Part’s B through D do come with monthly premiums that can vary depending on a variety of factors. You can find out more information on the different parts through the Medicare.gov website.

The enrollment period for Medicare begins three months before you turn 65 and ends three months after. If you miss the window, you can still sign up for coverage from January 1 through March 31 each year, but you may end up paying a higher premium for late enrollment. Be sure to keep this information in your back pocket to avoid missing the window.

What do you think of the Medicare program?

Postage Stamps as Teaching Tools?

Visual learning is a process that involves retaining information by viewing graphic displays of topic material. Seeing images of words, ideas and concepts has proven to be an effective strategy in enhancing the learning process and recalling information with more clarity and consistency. One possible application of this concept involves the use of postage stamps to reinforce long-term knowledge about a subject.

Postage stamps have told America’s story since the Postal Service was created in 1775. Their colorful, visual displays of people, places and events continue to capture the attention of collectors around the world. Given the detail and vibrant pictures on stamps, could they be used as a visual aid to help students learn new material in the classroom? Let’s take a look at some of this year’s stamp releases and find out.

On January 6, the New Mexico Statehood stamp was released. The stamp depicts a landscape in northern New Mexico with a date range of 1912-2012, indicating when the territory was officially accepted as a state into the U.S.

The Birds of Prey stamp issue, released on January 20, depicts a collection of five powerful birds including the Northern Goshawk, Peregrine Falcon, Golden Eagle, Osprey, and the Northern Harrier.

The Civil War was a difficult time in our history, and the Postal Service commemorated two particular events with a stamp release. Both the Battle of New Orleans stamp (April 24-May 1, 1862) and the Battle of Antietam stamp (September 17, 1862) were issued on April 24.

Each series displays not only a visual story on the subject matter, but also provides additional information such as names and dates. Students learning about these subjects could possibly reinforce their long-term recollection of that knowledge by reviewing a related stamp issue.

Do you think stamps could be used to reinforce the learning process in the classroom?

Gold Medalists on a Stamp

Placing a living individual on a postage stamp is not yet a reality in the United States, but in the UK, Royal Mail is looking to honor gold medalists in the 2012 Paralympic Games. 

Royal Mail has been a long-time supporter of the British Paralympic Association, an organization dedicated to supporting participation of disabled British athletes in the Paralympic Games. This year, the games are being held in London, and Royal Mail will honor both the games and British athletes who win a gold medal on its next stamp release.

The Paralympic Games occur during the same winter and summer cycles as the Olympic Games. Approximately 4,200 disabled athletes from 160 countries around the world will compete in this year’s Paralympic Games. The highly competitive event begins August 29 in London and continues through September 9.

Do you think USPS should honor gold medalists from the U.S. on a stamp?

Feeling the Retirement Itch

In the past, it’s been all or nothing. You can either retire completely from your full-time job or not at all. The only middle ground compromise would have been to retire and find a job working part-time somewhere else. With a recent transportation bill signed into law by President Obama on Friday, July 6, 2012, however, federal employees might have the opportunity to mix the two options.

Situated deep within this 593 page Conference Report (legislation negotiated between the House and Senate), Section 100121 on phased retirement was added, changing the landscape of options for potential retirees. Instead of an all or nothing proposal, retirement could consist of a sort of working retirement. An individual who would like to spend more time enjoying life beyond working years, but still spend time with co-workers in a job they enjoy, might have the opportunity to do both.

The bill was proposed as a way to prevent the knowledge and skills of older workers from abruptly leaving the workforce and moving into retirement. Skilled individuals will now have the opportunity to mentor the younger generation of workers and prepare them for the road ahead while also enjoying their partial retirement.

Partial retirement can consist of working one to four days during the workweek. The retirement pension received during phased retirement will be based on a pro-rated amount of the eligible annuity. An individual, for example, working 40 percent of the time would receive 60 percent of their retirement benefits. The phased retirement option can only be selected once in an employee’s lifetime, though it is possible that a partially retired individual could return to working full-time. Once full retirement is chosen, the additional benefits accrued for the percentage of time worked during phased retirement will be recalculated and the individual will receive a composite annuity.

For individuals vacillating between retiring and continuing to work, this might be an option that could make the retirement itch easier to scratch.

Is a phased retirement something you’d likely consider in the future if it becomes available? 

The High Costs of Injuries on the Job

Workers’ Compensation is an insurance program that protects workers in the event of an injury sustained while working on the job. It provides benefits such as medical care, wage income, rehabilitation, and death benefits to help workers and their families through a difficult time.

Individual states have their own compensation programs for employees of private corporations and state and local governments. The U.S. Postal Service is covered by the Federal Employee’s Compensation Act (FECA). This program has been in existence since 1916 and covers three million federal employees around the world.

According to a Government Accountability Office report, the program paid $2.8 billion in benefits to 306,905 workers and survivors in 2010. This figure does not include compensation paid by individual states. Of the total compensation paid out in 2010 to federal employees and their families, the Postal Service had the largest number of FECA beneficiaries at 130,482, or 43% of the total.

The report does not go into the nature of the injuries, but it is clear that safety should always be of paramount importance in the performance of duties on the job.

What do you think is the cause of most work-related injuries?

The Business of Relationships

In the world of business, opportunities for achieving success are everywhere. Many times, that success can depend on one company developing relationships with other businesses. The combined bond that they form can be mutually beneficial, yielding enhanced cost savings and greater profit.

That’s the story with Tarazz.com.au, an Internet retailer based in Australia. The company recently announced that it has formed a partnership with Australia Post, choosing it as the exclusive shipper of its products. The new partnership is likely to yield significant cost savings to Tarazz while creating additional revenue for Australia Post.

Not everyone is pleased with the deal, however, as local Australian businesses are already having a hard time competing against Internet based companies offering cheaper prices. Reducing the costs of shipping products to customers could have the effect of encouraging more online purchases over conventional brick and mortar stores.

Do you think businesses should be able to form exclusive relationships with each other?

Would You Like Any Travel Insurance with Your Purchase?

This is a question you might be asked when visiting a post office in New Zealand. Besides the usual lineup of postal services, customers can take advantage of a few more conveniences typically reserved for other government and corporate enterprises.

New Zealand (NZ) Post is one of many postal organizations around the world looking to expand their business, adding a variety of complimentary services and products to their more traditional post lineup. These contributions to the bottom line typically offer convenience for the customer in the form of a one-stop shopping experience. In addition to purchasing a book of stamps, customer can register their vehicle, buy travel insurance, exchange foreign currency, buy an international “travelSIM” card for their phone, or pick up a calling card.

Although the extras offered by NZ Post are helping their bottom line, they recently implemented a postage rate increase of 15 percent to bring delivery revenue in line with the cost to carry the item.

Do you think these are possible services the USPS could implement?

Physical Mail Turned Digital

Technological advances continue to make our lives more streamlined and easier to connect with each other than ever before. The portability of smart phones and tablet PC’s make accessing e-mails, social media sites, and news content faster and more convenient for people on the go. With enticing revenue streams being generated from these services, it’s not surprising that several companies are working hard to cash in on the chance to convert physical mail into a digital alternative.

Zumbox has recently announced that it received more than $10 million in investment dollars to expand its digital services. The company, based in CA, partners with other corporations to convert the paper mail sent to their customers into a digital alternative. Each subscribing company is charged a small fee for the conversion, but it’s typically less than the company would have paid in postage for physical delivery. Individuals who prefer to have all of their mail from participating companies delivered to a single secured, digital mailbox can do just that on Zumbox’s website. The cost is free for subscribers of the service.

Various postal entities around the world are working on similar measures to retain their customer base in order to prevent them from diverting their business elsewhere. PostNord is one such example. You can read about their process in the July 26 article entitled “The Digital Convergence.”

Do you think the Postal Service could benefit from this type of service?

Is Less Than 50 Too Old?

It sounds counter intuitive, but when it comes to the number of stars on the American flag, it begins to make more sense. That’s the background behind the story of a Post Office that recently discovered two worn out American flags in their office – both with only 48 stars.

Colorado/Wyoming Post Office Operations Manager Gary Sims periodically requests that offices with worn out American flags direct the prominent emblems of the U.S. to him. Once he receives these flags, they are directed to the local Veterans of Foreign Wars for proper destruction according to procedures outlined by Administrative Support Manual 13 – 473.2.

When he received the latest batch of flags from his most recent request, however, two of the flags had only 48 stars on them.

“As I recall, Alaska and Hawaii were admitted in 1959. Basic math would tell me those flags were stored in that office for over 53 years,” said Sims.

Both Alaska and Hawaii were indeed admitted into the union in 1959. That means for 53 years, the two flags have been lost in time, waiting to be discovered by the future.

What unusual items have you found after a little spring cleaning in your office?

USS Constitution

One of the most famous American warships in our country’s history is also the oldest commissioned vessel still floating at sea. The USS Constitution, nicknamed “Old Ironsides”, serves as a museum with a crew of active duty members of the U.S. Navy. This year marks the bicentennial of its victory against the British in the war of 1812.

To commemorate both the bicentennial of a war that gave America its identity and the role the USS Constitution played in boosting morale in America, the Postal Service will issue a stamp featuring a classic painting of the famous warship. The stamp is scheduled for release this Saturday, August 18, as a Forever stamp.

“Old Ironsides” received its nickname when the vessel engaged the HMS Guerriere on August 19, 1812. As the vessels closed in on one another to inflict as much damage as possible, canon fire from the Guerriere bounced off of the 25 inch thick solid oak hull of the Constitution. Upon seeing their canon fire bounce off of the other ship, one of the Guerriere’s sailors shouted, “Her sides are made of iron!” From then on, the Constitution was known by the nickname earned from this famous battle.

To find out more about the stamp, go to beyondtheperf.com.

To read more about the USS Constitution, go to the official Navy website.

What other famous vessels would you like to see on a stamp?

RTS for Stolen Drawing

A theft from an art gallery in New York took an odd twist when the thief decided to return his ill-gotten gain just one week after he took it. What’s even more unusual is the method of the return that has authorities scratching their collective heads in bewilderment.

In the middle of June, 2012, an art thief walked into an art gallery in Manhattan during broad daylight with an empty shopping bag and walked out with a $150,000 drawing by Salvador Dali. The theft was reported to the police who immediately began investigating the incident. A week later, an e-mail was sent to the gallery informing them that the drawing was being returned via Express Mail. The e-mail also conveniently included a tracking number to easily locate the package.

The Postal Inspection Service recovered the drawing at Kennedy International Airport after its brief visit to Europe. That’s apparently where the thief transported the artwork after stealing it.

The cause of the theft and quick return is still under investigation.

Why do you think a thief would steal a drawing only to return it a week later?

How to Double Your Investment Dollars

It might seem hard to do in today’s stock market roller coaster, but it is possible for federal employees to double the return on their investment dollars. For Federal Employees’ Retirement System (FERS) employees, investing in the Thrift Savings Plan (TSP) can be a huge boost to retirement income, and you don’t have to spend a dime to participate.

FERS employees already get a one percent agency match without contributing anything to the TSP. That’s great, but there is so much more to be had once employees start contributing their own money into the program. Beyond that first one percent, the agency will match contributions dollar for dollar up to three percent of the money put into the account. The contributor puts in three percent, and a total of seven percent goes into retirement savings. So far so good, but let’s not stop there.

When an additional two percent is placed into the TSP, the agency will match the contribution 50 cents on the dollar. Once that’s done, investors will have essentially earned a 100 percent return on five percent of their income. Even under the best of circumstances, the stock market cannot provide you with a comparable rate of return.

Any additional amount above the ten percent total contribution gained through investing activities within the TSP funds is simply icing on the cake.

What’s your favorite TSP allocation?

Hatching New Penalties

Political activity is a phenomenon that seems to be all around us these days. In every election cycle, the desire to either participate or ignore the unfolding campaigns can spark within us a resolution to act. For federal employees, participating in political activities could lead to consequences beyond encountering opposition to a point of view. A new Senate bill introduced this year has the possibility of adding additional consequences for employees who engage in political activity prohibited by the Hatch Act.

The Hatch Act of 1939 prevents federal employees from engaging in certain political actions. This includes engaging in political activities or wearing political buttons while on duty, running as a candidate for political office in a partisan election, and using their official titles for influencing an election or raising funds, just to name a few. In addition to the existing 30-day suspension and termination penalties, Senate bill 2170, the Hatch Act Modernization Act of 2012, seeks to add the following penalties:

-          Reduction in grade

-          Formal reprimand

-          Debarment from federal employment for a period not to exceed five years

-          Civil penalty not to exceed $1,000

The bill still has to go to the full Senate for a vote before it can move towards becoming law. 

Do you think the proposed penalties are appropriate for employees who engage in prohibited political activity?

How to Capture a Stamp…

…as a valuable part of your stamp collection. When you receive a card or letter in the mail sent with an interesting stamp, why throw it away? You can safely remove the stamp from the envelope and add it to your collection instead. If you don’t yet have a collection, what better way to start one than with a free stamp?

We regularly receive stamps in the mail on a variety of envelopes. From advertising pieces, business correspondence, and personal mail received from friends and family, you have quite an opportunity to yield a bounty of stamps, all without charge. Once you’ve established your collection, add to it with stamps from your local Post Office or usps.com to enhance your album.

Here are a few tips from the American Philatelic Society on how to remove a stamp from an envelope without damaging it:

1. Cut the envelope paper around the stamp.
2. Remember your laundry protocol – separate the white envelopes from brightly colored ones.
3. Soak the separated stamps face up in lukewarm water.
4. The stamps should easily slip away from the paper after a few minutes, but don’t force it. Keep soaking them until they’re ready to separate with minimal effort.
5. Remove the glue from the stamps by rinsing with water. Place in between two paper towels and allow them to dry overnight. Make sure something flat and heavy presses down on the towel-encased stamps to keep them from curling. 

What stamps have you received in the mail?

Grilling Isn’t Just for Burgers

Hello all, Benny here. I was just looking through a photo album of some rare and valuable stamps and I came across a picture of one of my favorite ones of all time – the one cent, 1868 Z-grill stamp.

What makes this particular stamp so interesting to me is its rarity. Of all the stamps produced in 1868, only two of these are known to exist. One is owned by the New York Public Library and the other by Bill Gross. Bill acquired his stamp in 2005 when he traded four stamps worth nearly $3 million for it. Who knew it would be worth so much when it was printed in the 19^th century?

Incidentally, besides being one of the rarest stamps in the world, it has one of the most famous people of all time as its subject. See if you can guess who that is.

If you were to start a stamp collection today and could pick just one as your first, which one would it be?

Crossword Puzzle – Answers

Hello all, Benny here. I hope you had the chance to enjoy Friday’s puzzle over the weekend. In case you missed it, STOP! Don’t read the following post. Go back to Friday’s puzzle and see if you can come up with the answers.

Now that everyone has had the chance to try out the puzzle, see how you did by comparing your answers to the ones below. I hope you enjoyed solving the puzzle as much as I enjoyed writing it. If you want more of them in the future, be sure to let me know and I’ll see what I can do.

Until next time!

Benny

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