Dan's Blog
Back-to-School Saving for Retirement Checklist for Teachers
August 11, 2020 (updated 8.28.23)
It’s no secret to teachers that this time of year is: thrilling, exciting, exasperating, stressful, and exhausting. It’s also a good time to think about saving for retirement. Educators who have a handle on the following 10 items give themselves an excellent opportunity to have a comfortable retirement.
- Do you have a pension? If yes, learn the basics of how it works. Generally, states provide excellent online information including calculators that allow you to estimate a future pension payout. Here’s an example for CalSTRS members in California. It pays to understand how much you will receive in retirement.
- Do you have a Roth IRA? You might wonder why a website called 403bwise would list this plan ahead of the 403(b). The reasons? Simplicity, access to any vendor you want (such as low cost leaders like Fidelity and Vanguard), and saving for retirement on a Roth basis (no upfront tax benefit but no taxes at withdrawal in retirement). See How to open a Roth IRA.
- Do you have a 403(b) available at work? If yes, do you understand how it works? If you need to get wise to this plan read this and watch this.
- Do you have a quality 403(b) vendor(s) available? Check out our vendor ratings here.
- How good or bad is your school district's 403(b) plan? To date 403bwise has listed and graded 5,000 school district 403(b) plans. See if we have graded your plan here.
- Do you have a 457(b) available at work? Do you understand how it works? This is a second defined contribution plan available to school employees. If you need to get wise to this plan read this and this, watch this and listen to this and this.
- Do you contribute to Social Security? Not all teachers do. Read this and this.
- Do you have the right kind and amounts of insurance? Read this and this.
- Do you have emergency savings? Do you know how much to save? Read this, this, and this.
- Got questions? Attend a free 403bwise Office Hours Event.
If you are unsure of any of the above, post your question(s) on the 403bwise Facebook Group. If you are interested in working with an advisor read this to be sure you are working with one who puts your interests first.
Stay well.
