Teachers, Here's What You Need To Know About Your Pension Plan
Let's dive into your different pension election options so that you can make an empowered decision for you and your family.
You Deserve It, But Have You Earned It?
As a financial advisor, there are times when I’m tasked with delivering a hard truth, and this concept happens to be one of them. This article might ruffle a few feathers, but recently I was struck with this concept after listening to my very responsible 10-year-old daughter proclaim, “Dad, I deserve a tablet.”
Teachers, Avoid a Potential Retirement Credit Disaster
Teachers nearing retirement (and teachers who are taking maternity, extended sick time, or working part-time) should pay close attention to the retirement credits being awarded to you.
Who is Paying Your Investment Fees?
The other day I met with a long time client and we were talking about some of her early investing experiences. She told me she started at a local bank and they offered her investment management services. She happily accepted and for years she thought it was a complimentary service provided by the bank and reminded me that she didn’t realize there were fees associated with her investing until our first meeting.
What Every Teacher Should Know About Their 403(b): Surrender Charge Basics
How does it Work? Surrender charges usually come in two flavors: Fixed Period: Where the surrender charge is based on when you start the annuity. For example, if you started the annuity in 2017, the annuity could be free of surrender charges by 2024. In this example, the annuity has a seven-year surrender schedule. The number of years will vary depending on the insurance company. Another variable is the percentage, which represents the actual fee on the withdrawal. If you dig in the prospectus of an annuity, you will probably see something that looks like this- 8%, 7%, 6%, 5%, 4%, 3%, 2%. This indicates the annuity has a seven-year surrender period with an 7% surrender charge in the second year, 6% charge in the third year, and so on until the eighth year.
The Upswing of a New Swing
So, how does this relate to personal finance? Sometimes, making a change feels uncomfortable, but it often yields good results. Not only will the initial change provide benefits, but it often has a ripple effect and positively impacts future events.