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Everything posted by MoeMoney

  1. Isn't it bizarre to think our emails get flagged and our helpful sharing of articles have to be distributed discreetly? You'd think we were....403(b) sales reps with something to hide! Oh that's right, they have free access. I don't think we're putting aside reform, but I do agree that we are taking one of the two-pronged approaches here. 100% right Ed, it's about building relationships, and face to face, and holding their hands. That is gold. Great work getting your former colleagues a lower cost plan.
  2. Cal Newport wrote a book called Deep Work. I just borrowed it yesterday from one of the many wonderful libraries in my area. From what I've read so far (and heard him say on his recent podcast interview) we all have period's of time during the day that is better suited for deep work. Mine is in the morning so I'll be reading your post then. Thanks in advance for sharing, Ed.
  3. I didn't either, but you brought it to the surface! That is why I begin the Fin Lit unit identifying and ranking values. Yes, behavioral economics is a relatively new field of study. Captivating to me too. And that is why I've been MIA for a while! I am a fan of letting things percolate after gathering as much information as possible, asking questions and exposing every possible scenario. I've sought guidance from several valued mentors and have done research, read and created. And physical workouts are always therapeutic for me. I am almost finished writing a PD to present to teachers on the state of 403(b)'s which includes the basics of financial literacy in language they understand, not in salesman language. I will be proposing it in June to the PD committee and pushing to present it a couple of weeks later. I'll collect data and market it to area schools and seek approval for CTLE credits for attendees. Looking ahead, I will seek sponsorships. What's the worst that will happen? I'll help a teacher and do a lot of volunteer work. I also have a teacher interview in May and today I had a Skype interview for an international teaching position! It would be easier for me to discard scenarios early but I usually don't do that. How did you manage during your mental volatility between job switches? Are you happy with your move?
  4. It is well worth anybody's time. I know you've posted it here in the past. Wish I could duplicate it on the east coast. Baby steps...
  5. I'm awed that the union gets to offer this AND members get to earn PD hours. Is the presenter a member of the union or a fin rep?
  6. On the other hand, it turns out the difference between 16 years of service credit and 17 years is $230 for the year in pension benefits, I kid you not. I think I'm going to throw in the towel. If I'm not going to make it until 20, why bother, other than the income. It's too risky to count on getting a year of service from year to year. I think I'm ready to re-create myself and my husband is ready to move onto the next chapter. Thanks for listening to me vacillate and for sharing perspectives. I'll keep you posted.
  7. With all the media surrounding the lowering of 401(k) fees recently, and some attention on the excessive fees of 403(k)'s, I was hoping to see new posts from teachers here, looking for guidance. There are so many of them that still need to discover how to make their plan better. Any thoughts on how to do that? I think about setting up a booth at teacher's conferences one day but that means time off and costs. What would this scenario look like and how would that go over? Just mulling it over here, not really looking for hard answers, just conversations about how to increase awareness.
  8. Update: it seems I could get a full year of service credit by teaching my .5 at half my salary and "teaching" as a permanent sub for the other .5 at half the current sub pay (way less than my salary). This would "buy" another year of service credit and some time to prepare for a departure the next year, with 17 years of credit. It would also free of my mental bandwidth by teaching 2 preps instead of 4 or 5 and allow me to focus on my next step.
  9. Well done! Do you have a date yet?
  10. Great questions. Some people in your situation might elect to do some pre-tax and some Roth as a way of diversifying and playing it safe if the tax brackets do change. What do you mean by: "b. 457 withdrawals subject to all taxes, but allowed $20,000 annual state deduction." I like krow's idea about adding in a Roth IRA if you don't already. That gives you extra retirement savings and tax diversification too.
  11. Hi Fbuchner, Call me a skeptic but I'd want to see it on my statements supporting what your security benefit rep told you. "The SBG ARP program is load-waived, i.e no sales or loads. Instead, SBG charges a flat 1% or .25% quarterly asset-based fee plus the individual fund expense". Of course, if you're transferring, it won't matter much to you, but then you can tell a colleague what you learned about the front-load charges and waiving. Good luck either way.
  12. Thanks krow. I randomly asked the superintendent about doing that this year, in light of the budget crisis. And today, I asked the union to ask again, seriously. It would save them money. I’ve covered a lot of ground this weekend and I’m in a good place for now.
  13. This is what I know: I'm not intent on continuing to work AT THIS job. Certainly under those terms for 8 years to qualify for the extra $26K. (65 years plus 8 years =....) What is "enough" money? Will it ever be enough? What is "enough" time? Will it ever be enough? I do want to dedicate time to family, friends and hobbies. I could be happier working at another job. Ed, are you sure you're not a financial therapist? I think you could define the job. What financial advisor would ask those kinds of questions? Not too many I'd guess. I could be wrong though.
  14. I think it's more like $2200/mo difference 12 but there are some federal taxes reducing that gap some. All said and done, I'm confidently thinking I'll do something in the private or entrepreneurial world to satisfy my yearning while "playing" too. I do love teaching my students and the content in which I teach but not under those terms I outlined. I am consider asking for something in return for retiring as you mentioned as they'd have to hire a PT teacher at half my salary. It is highly unlikely given the climate we are in but if I pose it correctly and confidently, what's the worst that'll happen? I have zero experience negotiating terms like that but some experience negotiating in general.
  15. I do share your broken psychology! But I suspected all along that I might not teach for 20 years, given our age gap, so it's not a new mindset I'd have to get over. It's more the math of ~$1800/month vs. ~$4000/month for just 4 more service credit years. Portfolio aside, it still is a psychological block.
  16. I'm trying to understand in what situation opting to buy a guaranteed annuity would work over a pension for life (and the life of a spouse upon death). I think that annuities "die" with the owner. I tend to think it's if one believes their pension is not too secure or if they could get a higher monthly pay out from the annuity compared to their pension while they are alive, and have no desire to let it pay out to any survivor. I have been so tuned out of annuities for so long though I know they have their place and could be very useful if chosen carefully in the right scenario. Like yours is. Thanks for your answers, Steve.
  17. Beautiful pos! So nice to enjoy traveling as you both do. Our district does not have TIAA. Once I get to move money from a 403(b) or 457 it can go into an IRA and I could also use some to buy a similar annuity, if it exists. Is that correct? Alternatively, I could take my pension and buy an annuity upon retirement (which might be really soon, given the situation I wrote about in another thread). If I bought a guaranteed one, like yours, that could represent the bond portion of our collective portfolio. My Q1 returns include maxing out my 457 and Q2 will include doing the same for my 403(b). Good thing I front loaded.
  18. Thank you Ed. 1. My husband and I agree with #1. It would only be for the purpose of accruing service credit. Our portfolio, age and great health and plans make this option an excessive consumption of time and opportunity costs. We all agree. 2. It's not the same in NY. I might be placed on a different district's pay scale at year 4 or 5 (the would be gift) instead of year 16.5 here. That is what is unique about education systems - it locks you in to the same place which might have been fine in one era. That is just one reason why those of us on this forum feel strongly about saving independently. Every thing I hear and read talks about getting paid for what you're worth, well, that is not the case here. 3. and 4. sort of go together in that we built up our portfolio, it is diverse and includes real estate and securities and we could be comfortable retiring. I am almost 57 and my husband is 65. I've worked since I was 14, but mostly not bringing in much income while raising our 4 kids. It took all my working years starting at 41 to save (while still overspending, in retrospect) and only recently did I address this smack in the face. Point it, we know how to live modestly and make good decisions and we understand why retirement makes sense. At 65 my husband feels, and I agree, that it's time to play. 4. Spot on. Regardless of finances, I'd like to work, earn income and retire! I've been thinking of teaching or working in the financial industry, in some capacity. Not sure but with two Master's degrees, I don't want to be paid less than I'm worth, ever again. (Wow - this is refreshing to write and think about!) Are you currently retired Ed?
  19. Thanks krow. That must have been stressful for you all those years. That is likely what made you live within and under your means and learn investing strategies. I am the sole department and fall under CTE. The other CTE are in the same position every year and the district is moving away from CTE and are bringing in coding across the curriculum. Ironic as it is, they asked me to introduce and teach coding classes this year, and to co-write the K-12 curriculum for it. I also teach computer applications (and FACS). And I always said that computer literacy and coding should be embedded and now it looks like it will be. The other teachers will not have any training to teach coding and they will be furious and untrained on how to bring it into their curriculum. I told the principal this too and he said the district wants to do it (they want new things all the time and teachers always go along with it because what else can you do). I'll add that we are open to living somewhere else (not selling or moving yet, our two working adult children will manage the house) and I'd go anywhere. We love to travel and live like the locals.
  20. I have only told my husband last night, hours before his early morning flight to FL for a few days. I was called in to the office yesterday afternoon and I assumed it was to receive what has become a normal notice of potential job reduction. It has never happened and I have been employed in this district FT for 16 years. This time, it was to inform me it is a confirmed reduction from my 1.0 position to a 0.5 position. My principal had my union rep attend and it was the first he was learning about it too. Now, if I wasn't financially savvy and hadn't gotten wise with my 403(b) and 457, this would be troubling, to say the least. Here are some options I've come up with in the 28 hours (minus sleep time) since then. Keep driving 31 miles one way to be in school nearly the same amount of time (schedule is not done but there is strong indication my classes will range from 8 of the nine time periods, thus I will need to remain in school. I MAY be able to sub to achieve a full year of service credit, at a substantial pay reduction but that is unknown and may be unknown right up until school beings. Seek another teaching job in my geographic area and take a potentially substantial pay reduction, almost like the one I mention in #1. This time though, it would mean a FT work load - business as usual - for the pleasure of less money but a year of service credit. (We are all independent districts - there is NO reciprocity.) Retire, and take my pension with the under 20 years and under age 62 penalties. (For insight, if I attain 20 years or service credit, I'd get a 39% of highest three years. If I got for 21 and attain age 62, it would be 40.5%.) Now, it would be about 22% of my highest three years. I am passionate and an avid teacher and learner and I know enough about myself to know that I must create, educate and bring value for my immediate future, at the very least. Therefore, I want to work at something. My passions include teaching (and learning about) Personal Finance, financial literacy, all-things-403(b). I get to do this in my current job and would seek to do the same whether I get a teaching job or not. I have just been approved to propose a 403(b) wellness PD at my school to teach this May or June (go figure). I will end by saying you are the folks I have learned so much from and value your collective wisdom. I know many of you are retired and some are still teaching. I have not fully processed the ramifications of this job change yet and probably won't until I talk it through and let things percolate. My husband is 65 and works as desired in the job he retired from 1 year ago. He collects a pension and our health insurance is covered. Our 4th and final child will be senior in college and the funds are secured for that. Our oldest daughter was married a few weeks ago and that is behind us too. We don't expect to draw down any of our deferred comp plans until the RMD's. SO there it is, my friends. Please offer any insight, ideas, things to think about, etc. I am all ears!!!! And thank you for reading this far:)
  21. Hi Steve! I'd be glad to post mine if I had one that looked as good as yours! (What program do you use, Excel?) I like how specific you are with your chosen funds and your commentary on the annuity. Is there a specific class of annuity or is it simple called a traditional annuity? I do like the sound of that vehicle to hold cash and is the 3% fixed for certain period of time? Congratulations (I think) on reaching your RMD age! I suppose you will be rebalancing soon. Thanks for sharing. As usual, I learn so much from you and your posts.
  22. Verges on criminal??? You're catching on. Remember, it's unspoken and I'm not an authority:)
  23. We will hold your hand. It’s the one’s who stop asking we worry about the most!
  24. That’s great! It is a transfer from one 403b vendor to another. I believe a rollover involves an IRA. Call Aspire directly. Yes, annual rebalance. That is to keep your stock:bond ratio balanced to the percentages you desired.
  25. Good summary, and kudos for exerting that amount of effort for your s-in-law. I requested to get on OMNI’s advisory committee. Could you imagine how much they laughed at the thought of a teacher on that committee? It was a one-time committee, they did the damage and don’t meet. And the School Business Officials have meetings that are hosted by OMNI and the P3 vendors. No wonder some districts do not allow 457 plans as that would potentially hurt their commissions. It’s an unspoken mess.
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