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A pension is usually a public educator’s primary way to fund retirement. However, most of the time, these pensions fall short of your current salary. The first step to determining your retirement plan is to factor in your age. This will play a significant role in your planning process. The next step is working with a professional financial representative to help create a solution tailored to you that bridges the gap between pension benefits and your current salary. You will then want to learn the differences between a 403(b) and a 457(b) and choose one of the two based on your benefits. Both are deferred compensation plans for non-profit. There are differences between the two. However, both plans provide a tax break. They lower your taxable income based on the amount of contributions you have made. Therefore the more you contribute, the greater the potential tax break.
The stages of retirement can vary for educators. The main factor determining this variation is age. In your 20s, life can seem to go by in a blink of an eye. While you might not be thinking about retirement, it is incredibly beneficial the earlier you start. In your early years, you can take advantage of things such as compounding returns. However, If you are further in your educational career, you likely have more financial factors to consider. You might own a house that needs to be maintained. Your financial burden may be heavier, especially if you have a family. These are things that will need to be taken into consideration when planning your finances for your retirement.
Analyzing these options and choosing between the two is not a simple process. It requires education and understanding of everything involved in the matter. Options are different for educators, which causes additional knowledge of the process. Sifting through all this information and doing it correctly is essential in helping to ensure you have a comfortable retirement. Factoring your age is another critical component that causes many different variations to the process. Specializing in financial strategies, our retirement planners are equipped with the additional knowledge needed to factor in your options with being an educator. We will help you not delay your retirement planning any longer due to the added stress of confusion on what step to take next. We will educate you while guiding you to your best possible financial future.
Whether you’re just beginning your education career in your 20s or finishing up in your 60s, you've most likely given some thought to your life after retirement. Do you dream of moving somewhere warm and relaxing by the beach or a cold winter home for skiing? Do you hope to spend your days stress-free traveling the world? It’s fun to dream about retirement when you no longer have to work. However, without a plan, these dreams cannot be a reality, and as retirement approaches, this can become stressful rather than enjoyable. It’s never too early or too late to start. We are here to take out the worry and help make this process a breeze. Rather than feel overwhelmed or miss out on possible saving options, speak with one of our retirement planners for educators who can help you get and stay on the right track with a plan that matches you, your needs, and your dream goals.