Government Shutdown - AGAIN!

[James48843]

Just a note that we are now THREE DAYS from running out of cash again.

Government may shutdown as of THURSDAY, FEB 8th, if they don't come to agreement on a budget.

AND we're already beyond the DEBT limit, meaning that the Government can't borrow any more money, and is running on TSP "G"FUND" funds right now as part of those 'extrordinary measures".




(Note: Here is the message from TSP in December that says they are now tapping our G fund money to keep the government from bankruptcy-


"G Fund and the debt limit — (December 13, 2017) As of today, December 13, 2017, the U.S. Treasury was unable to fully invest the Government Securities Investment (G) Fund due to the statutory ceiling on the federal debt. However, G Fund investors remain fully protected and G Fund earnings are fully guaranteed by the federal government. This statutory guarantee has effectively protected G Fund investors many times over the past 25 years. G Fund account balances will continue to accrue earnings and will be updated each business day, and loans and withdrawals will be unaffected." )



I hope they come up with something to keep us from another government shut down. Those are not healthy for America.

 

[Bullitt]

September 30 is the deadline, will we see another shutdown? Seems there really isn't any motivation to come to a resolution and as usual both sides are pointing fingers.

 

[evilanne]

Do you really expect them to work together? Isn't it sequestration that happens when we hit the debt ceiling? I think they will probably do what they normally do and kick the can down the road with a CRA to avoid a shutdown...maybe they will do the same with the debt ceiling.

https://www.cnbc.com/2021/09/17/debt-ceiling-vs-government-shutdown-2021-why-it-matters.html

It would be a good idea if both sides went back to the negotiation table in good faith or pass individual appropriations bills rather than these omnibus package deals. OK...now I'm dreaming

"Yellen has been using “extraordinary measures” to conserve cash. But once those measures and cash on hand are fully exhausted, the U.S. will have to rely on incoming receipts to pay its obligations, forcing the Treasury to delay or miss payments. Yellen has projected that moment will arrive sometime in October."
--https://abcnews.go.com/US/wireStory/mcconnell-warns-yellen-gop-raise-debt-limit-80059736

https://news.yahoo.com/method-mitch-mcconnells-debt-ceiling-100113630.html

 

[alevin]

Considering I'll be starting retiree payments as of Nov, one hopes for no gov shutdown, Retirement interim payments as few as possible before being finalized, please. savings to offset the interim payments phase available however long it might take, but would rather not expend those savings down all that far on an extended hurry up and wait scenario. Hope for the best, prep for the worst. girl scout motto, not really, but I picked it up somewhere along the way since. :smile:

 

[joblin20]

Will this have any ramifications on the G fund?

 

[alevin]

Will this have any ramifications on the G fund?

Check out James' quote back a few in this thread. 2-5-2018. We've been there before, that particular Q has been asked before. similar answer this time if it comes to that. G fund is the emergency slush fund, but they promise we won't lose anything by them using it that way. all depends on how you define "lose".
'

 

[mmk119]

Considering I'll be starting retiree payments as of Nov, one hopes for no gov shutdown, Retirement interim payments as few as possible before being finalized, please. savings to offset the interim payments phase available however long it might take, but would rather not expend those savings down all that far on an extended hurry up and wait scenario. Hope for the best, prep for the worst. girl scout motto, not really, but I picked it up somewhere along the way since. :smile:

Alevin,

Congratulations and hope you the best in retirement. Just a note of caution to you and all of our other fellow members...
There is a retirement processing backlog. it seems to be hit or miss. I have friends who have retired recently and begun receiving their payments (not immediately) but relatively soon. I also have a few friends who are over 8 months now without receiving their retirement payments. they did start to receive a "partial payment"; but, that didn't happen for several months either. Just as in a government shutdown scenario - a financially sound personal budget plan would include a 3-6 month salary cushion. personally i would make that more like 6-9 months or even a year.

 

[Bullitt]

Good reason to have more than just TSP.

A taxable account is best in this situation since there aren't any age restrictions on withdrawals if you retire before 59.5. You could always withdraw the contributions to a Roth IRA, but that's not as easy as selling a few taxable holdings.

 

[fedgolfer]

Text of the CR / debt ceiling increase has been released:
• The CR runs through December 3, 2021
• The debt ceiling will be suspended until December 16, 2022.
• Division A, Section 140 provides extended disbursement authority.
• The measure also provides nearly $35 billion in emergency appropriations for recent natural disasters, including Hurricane Ida, and to help resettle Afghan refugees in the U.S.


I was concerned about short-term market reaction to debt ceiling (which is a blip though selling can cause more selling). This kicks the can to December if passed.

 

[Boghie]

Will this have any ramifications on the G fund?

Joblin, it already has. That is what is meant by the "extraordinary measures" Yellen has been using. They have been using G Fund assets for about two months. They promise to pay it back.

"Yellen has been using “extraordinary measures” to conserve cash. But once those measures and cash on hand are fully exhausted, the U.S. will have to rely on incoming receipts to pay its obligations, forcing the Treasury to delay or miss payments. Yellen has projected that moment will arrive sometime in October."
--https://abcnews.go.com/US/wireStory/mcconnell-warns-yellen-gop-raise-debt-limit-80059736

https://news.yahoo.com/method-mitch-mcconnells-debt-ceiling-100113630.html

When you run a $3 Trillion dollar deficit and you haven't increased your own credit limit bad things happen. But, they promise to pay it back. Till they don't.

Another question - kinda more important: What happens if the politicians vote themselves a higher credit max, but folks elect not to buy it? Just asking.

 

[pmaloney]

So is this the time to roll over to an IRA at Vanguard or Charles Schwab? Thanks! :smile:

 

[alevin]

Alevin,

Congratulations and hope you the best in retirement. Just a note of caution to you and all of our other fellow members...
There is a retirement processing backlog. it seems to be hit or miss. I have friends who have retired recently and begun receiving their payments (not immediately) but relatively soon. I also have a few friends who are over 8 months now without receiving their retirement payments. they did start to receive a "partial payment"; but, that didn't happen for several months either. Just as in a government shutdown scenario - a financially sound personal budget plan would include a 3-6 month salary cushion. personally i would make that more like 6-9 months or even a year.

Was aware of the processing backlog. fortunately, tho my earliest years had some major nuances in terms of off-on again fed employment and various hiring authorities along the way, all that time credited to retirement has been with just one agency. Since I put in the request 3 months ago, and the service review will supposedly get done early Oct (I requested review specifically, even tho its all in the e-record, I made sure of that), I'm hoping that will help shorten the processing delay. Goal is to hold off on SS for another couple years yet.

I made sure my current "cushion" would hold me for at least a few months, even if it costs me some of the 20% downpayment I've been slowly accumulating in savings. Most other savings are in outside IRAs/Roths, and fairly small. Market meltdown could hurt those right about the time I'd need them, they are where most of my growth has come from since awhile back. There are some other resources out there, but not yet available, takes time to settle an estate, especially when still working full time and different timezones involved in handling estate matters. But, ya know, I'll have a little more time on my hands to take care of those things once I'm outa the career track.

 

[Bullitt]

Will this have any ramifications on the G fund?

No. Your money will be there when you withdraw it down the road.

 

[tsptalk]

Senate may vote Wednesday on bill to prevent a government shutdown as deadline approaches

KEY POINTS

The Senate could vote as soon as Wednesday on a bill that would prevent a government shutdown, Majority Leader Chuck Schumer said.

The legislation would fund the government into early December and provide money for hurricane relief and Afghan refugee resettlement, he said.

Congress has to pass a funding bill before midnight Thursday to avoid a shutdown.

Lawmakers will have to separately raise the U.S. debt ceiling before Oct. 18 to prevent a first-ever default.

https://www.cnbc.com/2021/09/29/gov...mer-says-senate-may-vote-on-funding-bill.html

 

[Kdjs]

FYI-
My co-worker in October 2019 prior to pandemic with 25 plus years of service plus over 66 yr old postponed retirement stayed at work one month extra (November 2019) until they were told their retirement package was ready with date of expected annuity payment date with accepted application.
My October 2019 projected retirement application for June 2020 was already in progress with prior estimate of 3-4 months for full annuity payment. The estimate was just an estimate and actually took 4 months for partial pay and 7 months for full annuity with slight bump in road working in more than one agency.
Make sure your financially comfortable, fortunate for me I saved my vacation time paid and used my checking buffer for the additional shortfall, actually planned for savings/ discretionary in retirement. Make a plan and adjust as needed if able.
The application process was comfortable, keep required information handy, communicate as requested and as always be nice.

 

[tsptalk]

Senate reaches a deal to avoid a government shutdown

KEY POINTS

The Senate has reached a deal to avoid a government shutdown, Majority Leader Chuck Schumer said late Wednesday.

The legislation would fund the government into early December and provide money for hurricane relief and Afghan refugee resettlement, he said.

Congress has to pass a funding bill before midnight Thursday to avoid a shutdown.

Lawmakers will have to separately raise the U.S. debt ceiling before Oct. 18 to prevent a first-ever default.

https://www.cnbc.com/2021/09/29/gov...mer-says-senate-may-vote-on-funding-bill.html