“Retirement is not just a case of not setting an alarm anymore to go to work. It’s a major life-changing decision. That’s why it’s often celebrated and marked by friends and family as a special occasion.”

Introduction:

Retirement sounds great if you have planned accordingly. Unfortunately for a lot of people, they have not put themselves in the BEST possible situation for retirement. A lot of people out there, teachers in general, do not have the knowledge of what they need to do in order to retire and actually stay retired. And it is not your fault. It's the system we are in. They don't want us to really retire, they want us to take a short break and be at the phone waiting for their call to come back.

And sure, coming back may not seem like a bad idea, but depending on how long you have been gone, the system may have left you behind and now you'll have to play catchup. When it comes to retirements, take it seriously, when you retire it is because you are ready for a new phase of life. The youth you put to the side can now be accessed. This is why we need to address the 5 MAJOR CONCERNS when it comes to teacher retirement plans.

With that said, here are 5 Major Concerns about your retirement plans! 👊

1. Not Enough Income!

I see tons of plans that teachers are engaged in and they all have the same problem, they lack enough income. In retirement, you want to want to have MINIMUM, 1.5 Million dollars. Probably wondering where I got that number from? If you have 1.5 Million dollars and are getting an average return of the market with it, you will be able to take $100,000 out every single year and literally NEVER run out of money. Most people don't think about it like that, but compounding interest is a great thing. But most of the time, teachers are not adjusting their contributions when they get pay raises. You can end up with infinite money in retirement if you are using the right account. Lots and lots of accounts teachers end up with are risking all of their money every day in the market. We need zero risk accounts, that's OUR money in there. Protect yourselves.

2. Lack of Control Over Funds

Many teachers have limited options for growing their retirement savings, especially if they only have access to a pension or a basic 403(b) plan. Unlike other workers who might have 401(k) plans with more investment options, teachers may feel restricted by their available choices and lack control over how their retirement funds are invested. Go ahead and tell them you want control over your money, I guarantee they say 'No!"

3. Pensions and Social Security

Teachers often rely on state or district pension plans, but many are worried about the long-term viability of these pensions. Some states or districts are facing underfunded pensions, leading to fears that benefits may be cut or delayed, or that the system may become unstable. This makes it hard to plan for a secure retirement when you’re not sure if the pension will be there when you need it. Most teachers will never even collect social security.

4. No Supplemental Income

Along with having your money being gambled away in the stock market, pension plans that cut your salary in half, and never collecting social security, where the heck is that $1.5 million going to come from? This is why you need other forms of income. There are plans out there that offer compounding interest rates, zero risk floors so your money is always protected. But they do not want you to know that because if you take your money from the plan it's currently in, the state will be wondering why their enrollment is dropping. It ends up forcing them to make the change, and we all know, they do not want to change.

5. When to start

Obviously the best time to start is even before you begin having a career. The next best time to start is right now. You are reading this blog because something isn't right. You know it and I know it. We have 30 years to make everything right towards retirement. But is that enough time? Too many times people let the risk of the market dictate when they can retire. Dips in the market delay retirement 2-3 years in some cases. I for one, do not like stressing about what someone in congress does and how it will affect my money. No thank you. I choose zero risk accounts. Accounts that only make money when the market does well. Yes, they exist. So why don't you know about them? Because if we had accounts like this, financial advisors would lose half their income. Yes, because they make money when the market goes up or down. When should you start taking control over what account your hard earned money goes in? Right now.

If you are looking to have a more rock solid retirement plan in place, feel free to reach out for a 100% free strategic assessment to see what your current plan looks like and what it SHOULD look like.

Hope this helps everyone!


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