Texas Teacher
TRS Standard Annuity. The TRS retirement plan provides service & disability retirement benefits and death benefits. The plan is administered as a qualified governmental retirement plan under the provisions of the US Internal Revenue Code, Sect 401(a). Monthly member contributions are made on a pretax basis, meaning that at the time you receive your salary, you do not pay federal income tax on the portion of your salary used to make the contributions. Federal income tax on the contributions and interest is deferred until you receive a distribution from TRS, such as a refund or a retirement annuity. Amounts accumulated in your member account or your retirement benefits become taxable income in the years in which they are paid to you. In most cases, retirees choose to receive a lifetime annuity after working 25 to 40. Educators are eligible to retire when their age and service years total 80 or 90, depending on the benefits they desire. This is calculated by using service years, age and average salary. The result is a part of 100% of the average salary during the highest 3 to 5 working years. It is seldom sufficient to live on.
Supplemental Tax Sheltered Annuity. The standard annuity or pension described above is the mandatory portion of an employees retirement account. In order to supplement the standard annuity, it is advisable to create other voluntary accounts to provide the income needed for your lifestyle. The primary recommended voluntary account is known by IRS Code as a 403(b). All amounts contributed to this account are also tax deferred until they are distributed at retirement. Anyone working for a school district is eligible to start a 403(b) account with as little as $50 to $100 per month. One great advantage of a 403(b), unlike the TRS qualified account, is the loan provision. There are some rules to comply with but in most cases it is available to annuitants to borrow while they are employed and repaid in time for retirement.
At retirement a portion of your 403(b) savings may serve as a supplemental savings in case of emergency. Another portion may be turned into a lifetime income to supplement the TRS Standard Annuity. Contact me if you are interested in starting a 403(b) account.
Health Benefits. If an educator is employeed for at least 10 years, TRS offers a great health plan for retirement. At age 65, medicare becomes the primary health care provider and TRS Care is supplemental. At that time the Medicare Advantage option may be considered. An employee should also be aware of the advantages of a Long-Term Care policy as an important component of any retirement and estate plan.
Social Security. In most cases, Social Security benefits are not available for educators because they have not contributed sufficiently to the system. In some cases an educator is indeed eligible to receive Social Security benefits. Each case is individual and important to evaluate and discover what options do apply to you.
Supplemental Tax Sheltered Annuity. The standard annuity or pension described above is the mandatory portion of an employees retirement account. In order to supplement the standard annuity, it is advisable to create other voluntary accounts to provide the income needed for your lifestyle. The primary recommended voluntary account is known by IRS Code as a 403(b). All amounts contributed to this account are also tax deferred until they are distributed at retirement. Anyone working for a school district is eligible to start a 403(b) account with as little as $50 to $100 per month. One great advantage of a 403(b), unlike the TRS qualified account, is the loan provision. There are some rules to comply with but in most cases it is available to annuitants to borrow while they are employed and repaid in time for retirement.
At retirement a portion of your 403(b) savings may serve as a supplemental savings in case of emergency. Another portion may be turned into a lifetime income to supplement the TRS Standard Annuity. Contact me if you are interested in starting a 403(b) account.
Health Benefits. If an educator is employeed for at least 10 years, TRS offers a great health plan for retirement. At age 65, medicare becomes the primary health care provider and TRS Care is supplemental. At that time the Medicare Advantage option may be considered. An employee should also be aware of the advantages of a Long-Term Care policy as an important component of any retirement and estate plan.
Social Security. In most cases, Social Security benefits are not available for educators because they have not contributed sufficiently to the system. In some cases an educator is indeed eligible to receive Social Security benefits. Each case is individual and important to evaluate and discover what options do apply to you.
Retirement Planning
Retirement is a new beginning, not just the end of a career. A careful analysis of how retirement will affect your lifestyle is essential. Every retiree has a different set of circumstances and timing before that last day at work. My role is to help you develop realistic goals and corresponding steps to actualize your retirement vision.
Your retirement analysis and plan should include the following elements:
My mission is to help you worry less about money so you can focus your energy on more important things like seeing your retirement plan progress. The list above includes some of the important topics that will prepare and empower you to make the best retirement decisions to protect your financial assets and your retirement lifestyle. My retirement philosophy centers on safe and sensible financial practices. Safe choices will guarantee income you can depend on. There is only one way to guide and educate my clients--using tried and true financial principals that produce practical results. There is so much noise out there about how to secure your future. True and successful financial principals are often simple and recognizable. Once you know what to do, it takes focused effort to accomplish your goals. I'm here to help you along the way. Review the Areas of Concern below to help you get started. Click Here for more information. |
Texas Teacher Retirement
If you are an educator or someone working at a school you have specific opportunities that will allow you to retire comfortably. Find out more
Federal Government Retirement
As a Federal Employee you have your own benefits to protect and structure to work properly at retirement.
Find out more Social Security
Social Security is an integral part of a healthy retirement plan as long as you can navigate the system.
Find out more |
What are Your Areas of Concern
Please review the following concerns that apply to you and your family. Then prioritize those items of concern and bring with you when we meet.
-Will your family be provided for upon your death?
-Has your Will been updated recently?
-Are you saving enough for your retirement?
-Are you concerned you may outlive your savings?
-Will you have enough income if you should become disabled?-
-Are you going to provide some or all of your child’s college funding?
-Do you wish to maximize the amount left to your heirs?
-Are you interested in tax-deferred accumulation?
-Are you interested in a tax-free retirement?
-Are you concerned about your long-term health costs?
Please review the following concerns that apply to you and your family. Then prioritize those items of concern and bring with you when we meet.
-Will your family be provided for upon your death?
-Has your Will been updated recently?
-Are you saving enough for your retirement?
-Are you concerned you may outlive your savings?
-Will you have enough income if you should become disabled?-
-Are you going to provide some or all of your child’s college funding?
-Do you wish to maximize the amount left to your heirs?
-Are you interested in tax-deferred accumulation?
-Are you interested in a tax-free retirement?
-Are you concerned about your long-term health costs?
Retirement Planning
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Financial Planning
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Estate Planning
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