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  2. JAM

    Having trouble getting 457 plan added

    My district consists of 2 schools. 1 person has a 457 through Axa out of both schools. I will be the first one to have a 457 through Lincoln and the first at my school. I have been trying to recruit people and make them understand the benefits of this plan.
  3. tony

    Simple Isn't So Easy

    https://humbledollar.com/2018/11/simple-isnt-easy/
  4. https://educatorsfightingforfairness.wordpress.com/ I don’t do much to advertise. I rarely post on Facebook and Twitter. My site is indexed by the search engines. Almost all of my traffic comes from links I post on Bogleheads and here.
  5. In most cases, nothing is stopping the individual teacher from investing in low cost funds in their 403b/457b. I got Vanguard and Fidelity added to our vendor list and lots of other districts have one of the top 5 vendors or a quality state sponsored 457b on their list already. The obstacle here is getting the individual to care. A legislative solution for the collective has a lot of obstacles. Moe, I encourage you to get to work! I think Steve is right about the value of face-to-face organizing/communicating. I’m a software engineer and not being able to do that the way a teacher can is my biggest roadblock.
  6. EdLaFave

    How To Be Richer Than A Millionaire

    My spreadsheet takes into account the tax advantages of a Roth account, which provides year over year tax free growth. Although I have always advocated for Traditional over Roth, I’ve heard many (including posters on this board) tell people to invest in a Roth instead of a Traditional. I view this decision to be an optimization, but I agree with what seems to be the general sentiment in this thread that Traditional is superior to Roth. I did not model a Traditional account for the same reason I didn’t model a taxable account: the calculations would have been far more complex and the spreadsheet already took a bit of time to create. ...I encourage anybody to model the effects of using a Traditional account. More than that, I encourage you to model the effects of using a taxable account when you surpass the Traditional limits. ...I also gave the hypothetical investor the advantage of investing in funds that charge 0% expense ratios. I really tried to give the hypothetical investor lots of tailwinds with my model...I just refused to do that when it added complexity to the model.
  7. krow36

    Having trouble getting 457 plan added

    If you've got someone in the system that is working with you, that's great! It seems to be common that these changes take some time. It's obvious to you and us that there's an injustice that needs to be corrected ASAP, but those in a position to make the correction don't understand, and inertia allows them to procrastinate. You need them to give them time to realize that your cause is just, and that you won't give up. If you can get the change to happen without loosing your cool, it's likely to happen sooner. Keep in mind that what you are working for is what's fair to teachers. It seems likely to me that the pushback will give in if you keep up steady pressure. It might help if you can recruit another teacher to make your point. It seems like it should be so easy, doesn't it?? The district already is 457 plans on their vendor list. Lincoln Investment PCP is on the 403b list. The PCP also has a 457 plan for not additional admin fee to the teachers. They probably sense that they have to give in, but don't like being "pushed around" by the district employees. Keep the pressure up and maybe give them a big bouquet of flowers when it happens? I don't understand your comment: "When speaking with some one at Lincoln they could understand why it’s not available at my district." Did they explain why they think it's understandable that 457 PCP isn't available in your district? Perhaps there's no-one using the 403b PCP? If so, that's sad. Maybe you will spread the word? Keep in mind that the K-12 403b plans were all originally annuity based. The low-cost internet based plans using custodial accounts were all added after some teacher worked to get them added to the vendor list. 457 plans are a recent addition and your district is ripe for some teacher activism! You are doing great to get the 403b PCP started, so spread the word on that!
  8. Well, if it's one teacher a day, that's one more than yesterday. It's true that the law and regulations need to be revised but something else has to be done in the short-term.
  9. MoeMoney

    How To Teach Your Kids About Money

    It's a good thing we like talking about our finances:)
  10. MoeMoney

    How To Teach Your Kids About Money

    Most people are more comfortable talking about their life than their finances.
  11. JAM

    Having trouble getting 457 plan added

    Right now I’m talking to the coordinator HR and Payroll she is working with the person above her in adding the 457. The person above her does not want to add but the coordinator said give her some time . Lincoln investment does have 457PDP just not with my district. When speaking with some one at Lincoln they could understand why it’s not available at my district. So not sure what the next step is or if I just should sit tight and see if the coordinator can get it done.
  12. Both wanted to ensure that their children, ages 14 and 12, were motivated to succeed in their own right. Mr. Buckwald, in particular, was concerned that their children would think that the affluent town where they live, an area of horses and golf clubs, was reflective of the wider world. https://www.nytimes.com/2018/11/16/your-money/teach-kids-about-money.html
  13. Andrew's father wasn’t a drill sergeant. But when Andrew was a kid, and things didn’t go his way, he would tell me to “toughen up.” When I complained about high school, he reminded me of his own d years in England: “When I was 16 years old, I worked full-time as a mechanic’s apprentice. At night, I studied at a vocational college to become a full-fledged mechanic. And nearly all the money I earned went to my parents.”I’m part of the so-called Generation . But my father and I shared a certain trait. I also believed the next generation–in my case, millennials or Generation Y– needed to toughen up. Plenty of people say millennials aren’t resilient. Too many people in their 20s were told they were special when they were kids. They often earned sports medals and trophies just for showing up. https://assetbuilder.com/knowledge-center/articles/why-retirees-and-millennials-face-a-tug-of-war
  14. krow36

    Having trouble getting 457 plan added

    JAM, that's great that you have the Lincoln Investment Participant Directed Platform (PDP) set up for your 403b! To get the 457 PDP added to the 457 vendor list, you may need to go over the head of the business admin person. Was the "person" the chief financial officer? If not, you could write or talk to the CFO. If it was the CFO, then find out who's over her/his head. One of the BH posters quoted a Lincoln Investment staffer saying that the PDP is required by "law" in NJ (?) and another has said that the NJEA was involved in setting it up (?)! You could ask the NJEA on the state level for advice on how to get your district to add the 457 PDP. There must be some secret arrangement between Lincoln Investment and somebody that allows the PDP almost exclusively in NJ. Please update us on your progress in getting the 457 PDP added.
  15. tony

    Simple Isn't So Easy

    Roth is the author of How a Second Grader Beats Wall Street, a financial plannerwho charges by the hour, and a contributor of financial articles to AARP.org, Financial-Planning.com, NextAvenue.org and other sites. I caught up with him last month at the Bogleheads’ conference in Philadelphia. Here are just some of his trenchant comments: https://humbledollar.com/2018/11/simple-isnt-easy/
  16. Yesterday
  17. krow36

    How To Be Richer Than A Millionaire

    This BH thread on “Teachers: what are your best personal finance tips?” is worth a read. Steve, Ed, BashDash and I contributed, but others may have missed it. https://www.bogleheads.org/forum/viewtopic.php?f=2&t=220126
  18. sschullo

    How To Be Richer Than A Millionaire

    I am not talking about future growth. I am talking about what I have right now. When you say REAL NET WORTH, its what I really have after paying taxes. As I said in my previous post, nobody calculates their net worth like you do. My assets are over a million right now. But my portfolio is not REAL money, because much of it will used to pay taxes (yes I used tax-efficient index funds). I am talking about what my real money portfolio would be worth, IF I TOOK IT ALL OUT RIGHT NOW. So, if you take out the opportunity to save on taxes to put into a nest egg, of course, it will take many more years to get real money because your growth assumptions do not take into consideration the potential growth of tax-deferred money. That's the whole idea of IRAs, which whyme pointed out. Income taxes would be reduced and the growth assumptions would increase, that's how tax-deferred retirement plans work.
  19. Ed, I don't doubt that those who find you want only to fix their own problem. Most teachers who come here do the same. How is it that they found your website in the first place? What kind of marketing or media do you use for it? Can you share your website again? The truth is, teachers have to first feel like they are being ed and care enough. From what I see, they don't right now. Why is that? If one teacher, then two, then three, talk about the overpriced salesmen, maybe it'll start a trend of correcting the wrong within the teaching community. These questions are obviously not meant to be answered and we've beaten that topic to death, I know. It's getting front and center in the online teacher's world that I'm thinking about. Is it plausible to join teacher forums and social media sites, and post comments there? I think so. I generally do not hang out on such sites. Yet. Steve, thanks for the reminder of all would-be wake up calls to the comatose.
  20. Hi all Currently I have a 403b self directed plan through Lincoln investment. I am trying to open a 457 plan through Lincoln but it is not offered in my district (Hunterdon county NJ). The person(business admin in my district office) who is in charge is saying they do not want to add it at this time. Is their something I can do ? Who else should I speak with ? Axa has a 457 plan through my district all ready but I do not want to go through axa. Thank you
  21. krow36

    How To Be Richer Than A Millionaire

    It’s probably worth noting that teachers’ salary can increase with both time and further education, at least they do in my old district. I believe that is usually the case but don’t know for sure. My district has 15 yearly steps, and 9 education level steps. I started at $6000/yr in 1974 and ended up at $45,000 in 1992. I was a PhD program dropout so started (and stayed at) BS + 155 credits + MS. Here’s the current salary schedule. Teachers are “Certificated Non-Supervisory Employees 2015-2018”. Currently I would start at about $60k and currently with 15 years of experience I would top out at $109k. https://www.seattleschools.org/departments/HR/current_employees/labor_and_employee_relations/cbas__salary_schedules__work_year_calendars I believe it’s not uncommon for teachers in many states to currently earn over 100k after 10 or 15 years. A number of states have state-wide salary schedules which can be relatively high while the cost of living may vary within the state and be relatively low.
  22. whyme

    How To Be Richer Than A Millionaire

    Wandering off from the main topic, but one bit of optimistic behavior that one might include at these relative low salary levels: put the money in traditional IRA or (401k, 403b, etc if available) instead of a Roth. If I understand correctly, this would reduce the adjusted gross such that it would not only lower taxes, but could trigger eligibility for the "saver credit," which can be as high as $1000 and is an additional tax credit, i.e., it can reduce federal taxes due by the amount of the credit. In general, I think traditional IRAs are an encouraging way to go for those who are struggling to save, as they see an immediate tax benefit.
  23. EdLaFave

    How To Be Richer Than A Millionaire

    Your $19,000 1984 salary was worth $38,882.95 in 2008 dollars. So in 24 years your real salary more than doubled...congrats! Even with an infinite number of years, that is impossible for teachers in Florida. I can't remember the exact figures, but I think Floridian teachers have gotten crazy low maybe even 0% nominal increases for years.
  24. whyme

    How To Be Richer Than A Millionaire

    Yes, I originally saw the 30k starting salary, but by the time I looked at the portfolio column, the assumptions had changed and I didn't realize that. I see your note about the all-workers basis for that salary figure: no doubt about it, there are large numbers of hardworking folks who make less (much less, if benefits and pension are figured in) than full-time teachers.
  25. EdLaFave

    How To Be Richer Than A Millionaire

    You probably looked at the spreadsheet after I increased growth to 4.5% and increased starting salary to 40k. Yup. I generally tried to make optimistic assumptions for this hypothetical person. No state taxes. No health issues. No entertainment expenses. No vacations. No children. Although I did make one pessimistic assumption, no spouse or roommates to offset the biggest cost which is housing. Feel free to copy the google spreadsheet and play with your own assumptions if you want.
  26. EdLaFave

    How To Be Richer Than A Millionaire

    Remember, I'm using real dollars so the number of years I'm projecting into the future doesn't affect the validity of my calculations. If you say the salary is too low, I updated it to the 40k-74k range that OCPS uses and it still takes 40 years to reach millionaire status. If you say the investment returns are too low, I changed it from 3% to 4.5%...and after having increased the salary, it still takes 35 years to reach millionaire status. Historically stocks have a real return of 7% and I'm not entirely sure what it is for bonds, probably around 2%. I'm not willing to go any higher than 4.5% real returns because I've talked to lots of folks (you and Tony for instance) and people seem to need conservative portfolios to stop themselves from "buying high and selling low". The original post was about all workers, not just teachers. The US Bureau of the Census has the individual median income at $31,099...which is WAY less than starting at $40,000 with a 1% real raise every year. The numbers suggest that even with IDEAL spending habits, the millionaire label is impossible for a HUGE percentage of people. If you're suggesting you call yourself a millionaire based on the future growth that you hope arrives, then you aren't a millionaire. If you're saying you have a million in assets before taxation then it is reasonable enough to say you're a millionaire (at least hoping you do things in a tax efficient way).
  27. whyme

    How To Be Richer Than A Millionaire

    I agree with Steve that the salary assumption seems low--is that consistent with k-12 teacher pay in Florida? 3% real return (i.e., after adjusting for inflation) seems reasonable to me, it could easily be lower than that for long periods. So much depends on where you are. You don't calculate state tax, which matters here in California. Living comfortably on 26k, if you don't own and don't have a spouse or roommate, would be very difficult to pull off here (in Los Angeles) given prevailing rents (you could find a modest apt for less that 2k/month, but maybe not that much less). Ed, I am confused by your claim that your hypothetical teacher needs to work 48 years--doesn't your spreadsheet show a 1 mill investment portfolio as of year 35?
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