This is a quick post about my district’s upgraded retirement plan and what it could mean for you. If you aren’t a new teacher you can still take advantage of this information.
Long time readers of this site remember my district being featured in a series of New York Times articles about the high cost of fees teachers pay for annuity based retirements. The series revealed that most teachers have annuity products.
Annuities are not horrible or the end of the world BUT if you are a teacher reading this you could retire with a LOT more security.
Read on to find out how much more (in case you somehow missed the title).
(Click the image below to read how to upgrade your retirement)
My previous plan’s BEST year of growth was around 3.5% (and had higher fees).
What difference does a couple percent really make?
Below is the difference a few percentage points and compound interest makes.
Over the course of a career, if a teacher put $6,000 per year into a retirement account that earned 3% they would have approximately $368,000 after 35 years. Not a bad amount to have in retirement coupled with a teacher pension!
If a teacher invested the exact same $6,000 into a retirement account that earned 9.5% (less than what mine averaged this year) for 35 years they would retire with $1.5 million. This is not unrealistic considering the S&P500 has averaged 9.8% for the last 90 years. That is a $1.2 million difference!
I recommend S&P500 Index Funds. Mine are invested with Fidelity. They charge low fees and are willing to work with schools. Vanguard and others are also very good.
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Don’t teachers deserve this information? Don’t you deserve this?
This sounds too good to be true but there are teachers like Ed Mills, Andrew Hallam, Dan Otter, and Steve Schullo who also all KNOW this is real.
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