Going to College to become a Teacher - 19 Started Roth IRA.

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futureducator19
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Joined: Mon Nov 13, 2017 9:52 am

Going to College to become a Teacher - 19 Started Roth IRA.

Post by futureducator19 » Mon Nov 13, 2017 10:06 am

I am in my freshman year of college studying to become a teacher. I am a male going into early childhood education. I am older for my grade, and I plan to get a Masters in Education Literacy right after college which would put me at starting my career at the age of 24.My long term goal is to become a principal and possibly eventually a superintendent. This requires a lot of extra degrees - A masters in Education Admin/Leadership and if I become a superintended most likely a Ed.D. I started a Roth IRA last year with about 5,000.00 in in a total stock market index. I have about 1,000.00 in other savings outside my Roth. I plan on continuing to work throughout college and at least max out my Roth every year. I don't have any student loans and my college is thankfully paid for. I was wondering what advice anyone has as to becoming a teacher, principal, superintendent, or any investing advice in general. Also what is a good GPA to maintain I think I will have finish this semester with anywhere from a 3.8 to a 4.0.

Thank you!

Beehave
Posts: 81
Joined: Mon Jun 19, 2017 12:46 pm

Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by Beehave » Tue Nov 14, 2017 3:41 pm

Roth IRA is a great idea. As you accumulate more savings, consider adding a cash or bond component you can use to invest specifically when there are large dips. You can also consider adding an international fund.

Working outside of academia while getting your degree is a great idea not only financially, but also to gain an understanding of the non-academic workplace.

Regarding teaching as a career - - it is bound to be subject to increasing budgetary constraints and automation. You should endeavor to stay ahead of the technology curve and aim to use your expertise both to be in charge of selection and implementation of technology that will be effective and to be able to use the technology to teach effectively. Getting all the certifications you can (academic degrees and, if possible, some technology certifications) will probably be helpful for succeeding in a career-space that will be laced with technology change and budget constraints.

Best wishes with your career!

Yankuba
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by Yankuba » Tue Nov 14, 2017 3:47 pm

Beehave wrote:
Tue Nov 14, 2017 3:41 pm
Roth IRA is a great idea. As you accumulate more savings, consider adding a cash or bond component you can use to invest specifically when there are large dips. You can also consider adding an international fund.

Working outside of academia while getting your degree is a great idea not only financially, but also to gain an understanding of the non-academic workplace.

Regarding teaching as a career - - it is bound to be subject to increasing budgetary constraints and automation. You should endeavor to stay ahead of the technology curve and aim to use your expertise both to be in charge of selection and implementation of technology that will be effective and to be able to use the technology to teach effectively. Getting all the certifications you can (academic degrees and, if possible, some technology certifications) will probably be helpful for succeeding in a career-space that will be laced with technology change and budget constraints.

Best wishes with your career!
I agree with budgetary constraints but don't think automation will impact early education instructors. The wee ones aren't going to be supervised by a robot. As kids age the push will be towards larger class sizes and more online/software learning. My two cents.

DarthSage
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by DarthSage » Tue Nov 14, 2017 6:42 pm

My oldest is in her first year of teaching (elementary ed./bilingual ed.). A few thoughts:

Although you started late, I don't know if getting your master's straight off is a good idea. DD didn't, our niece did. Niece had much more difficulty finding a job (secondary ed./history) because the master's priced her out of competition. DD will have her master's paid for by her school district. I don't know how their salaries compare--they both work in MA, but different districts, plus elem. vs. secondary. I know that DD gets a bump for being bilingual, too.

Most school districts offer 403b plans, which will be nice--make sure to balance your investments across the Roth and the 403b.

If you really want to be a school superintendent, look into the education requirements. We traveled this summer with a retired school super--he had been a teacher, but I don't think he was ever a principal. He was a great guy with plenty of solid advice for my daughter. Also keep in mind that requirements may vary from state to state.

Determined
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by Determined » Tue Nov 14, 2017 9:02 pm

Get a position before starting your masters if at all possible. Not only will the school potentially reimburse you for some of the costs, but you will get much more out if it after you have been teaching.

A lot will depend on what state you are in, public or private, urban or rural. Compensation varies. My school tops out at masters plus 15 for teachers. Schools around here really like to hire locally, and a lot administrators come from within the district.

futureducator19
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Joined: Mon Nov 13, 2017 9:52 am

Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by futureducator19 » Tue Nov 14, 2017 10:20 pm

Beehave wrote:
Tue Nov 14, 2017 3:41 pm
Roth IRA is a great idea. As you accumulate more savings, consider adding a cash or bond component you can use to invest specifically when there are large dips. You can also consider adding an international fund.

Working outside of academia while getting your degree is a great idea not only financially, but also to gain an understanding of the non-academic workplace.

Regarding teaching as a career - - it is bound to be subject to increasing budgetary constraints and automation. You should endeavor to stay ahead of the technology curve and aim to use your expertise both to be in charge of selection and implementation of technology that will be effective and to be able to use the technology to teach effectively. Getting all the certifications you can (academic degrees and, if possible, some technology certifications) will probably be helpful for succeeding in a career-space that will be laced with technology change and budget constraints.

Best wishes with your career!
Thank you everyone, I really appreciate the advice!

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buccimane
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by buccimane » Wed Nov 15, 2017 8:47 am

The typical path we see in our district in NJ is a teacher becoming a subject supervisor, then VP, then principal. To be a subject supervisor in NJ, you need your Supervisor certification which you cannot obtain without a Masters. If this is something you'd like to fast track, it may be worthwhile to pay some of the way before you are able to obtain reimbursement.

Again, this is NJ specific but I'd assume most states have a process similar to this.
A man convinced against his will is of the same opinion still

Jack FFR1846
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by Jack FFR1846 » Wed Nov 15, 2017 8:58 am

I'll double down on recommending that you start teaching once you get your Bachelors. In Mass, all state colleges are free to teachers. Go nights to attain your Masters and go right on to your PhD-ED. In our town, the superintendents for as long as I can remember have all had their PhD. None have been from within the system.
Bogle: Smart Beta is stupid

pepperz
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by pepperz » Wed Nov 15, 2017 8:59 am

Call or write a hand written letter to all the principals / superintendents in your local area.

Tell them it would mean the world to you if you could bring them coffee / lunch and just have the opportunity to interview them and ask their advice for your future.

They will not only give you advice you will not hear elsewhere but trust me, they will NEVER forget you and may very well end up being the cause of accelerated opportunities in the future.

forgeblast
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by forgeblast » Wed Nov 15, 2017 9:11 am

Just hit 18 years teaching, I would wait for the masters.
Its a lot of extra debt that you may not want to carry. Most schools have some type of reimbursement program, same with admin degrees and super certs.
I worked three jobs, and a lot of hours a week when starting off due to the low pay and student loans (I went with a masters in a related field, to open up my chances of landing a job, its why I suggest waiting before packing on more ed degrees).
You might have to move to get your first job, I did NC for three years before moving back to PA.
I would also suggest getting minors in computer programming, or business or something other then education.
Education is constantly being hammered apart, its grinding work with little to no extra pay (overtime). Elementary means colds/sick a lot.
I honestly will not let my daughter become a teacher as the wife and I are both.
Get the minors you may need them to fall back on, once you go for the education route that is all you can do. Sub'ing is not fun, keep track of your days if your hired you might be able to buy back partial years.
any questions feel free to ask.

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CyclingDuo
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by CyclingDuo » Wed Nov 15, 2017 10:31 am

futureducator19 wrote:
Mon Nov 13, 2017 10:06 am
I am in my freshman year of college studying to become a teacher. I am a male going into early childhood education. I am older for my grade, and I plan to get a Masters in Education Literacy right after college which would put me at starting my career at the age of 24.My long term goal is to become a principal and possibly eventually a superintendent. This requires a lot of extra degrees - A masters in Education Admin/Leadership and if I become a superintended most likely a Ed.D. I started a Roth IRA last year with about 5,000.00 in in a total stock market index. I have about 1,000.00 in other savings outside my Roth. I plan on continuing to work throughout college and at least max out my Roth every year. I don't have any student loans and my college is thankfully paid for. I was wondering what advice anyone has as to becoming a teacher, principal, superintendent, or any investing advice in general. Also what is a good GPA to maintain I think I will have finish this semester with anywhere from a 3.8 to a 4.0.
We can speak on the career in education from being closer to the "end zone" of our teaching years with some thoughts you should consider going forward when it comes time to choosing a place of employment in education. Most of this is not for you to worry about right now, but will be a few years down the road when it comes time to land your first job.

Great idea to contribute to your ROTH in these early years while you are studying! Keep that up. We both got our Master's immediately after our undergraduate educations and did not enter the work force until we were 24-25. The advice of getting in the field and working at that point and searching for a program that allows you to continue your education for administration via night/weekend, and Summer classes makes logical sense. An aside: we're old school and totally prefer administrators that have actually taught (walked the walk - before becoming a leader). In our experience over the years, they were always much better administrators than today's crop of leaders who skipped that step and entered right into administration. We just mention that so you keep your eyes open for the attitudes of all the old school educators once you enter the field. We've all had it both ways, and it colors our opinions. :twisted:

Once you do reach the point in time following the earning of your degree(s) and seek to land your first position, we would certainly argue vehemently for considering the benefits package from a particular school district/state before you accept the job. In other words, this needs to be a tantamount part of your research before you go in for the interview.

All things else being equal with several job possibilities, if you can, pick one that has a pension plan and also look at their 403b plans so you can pick one that offers low cost index funds, and low or no cost annual administrative fees (wrap fees) of the plan.

Why is this important?

Whether it be on these forums, or on the 403bwise forums - time, and time again educators post up their dismal fund offerings and high expense ratios that they have to pay in their respective school district's 403b plans to the tune of 2%+. Educators are not high income earners, but can amass comfortable wealth over their careers and a steady retirement income stream thanks to the pension plans, and access to better 403b plans. If you land a job that is unfortunate with regard to the 403b plans they offer and end up paying over 2% per year in fees - over the life of your career, this means you will have to contribute and save twice as much as you would if you had a plan with low cost index funds, and low or no fee administrative costs. You can view that work in the following link to see the difference that makes when you reach the stage after several decades of teaching/educating/administrating:

http://www.retireearlyhomepage.com/twopercentrule.html

Another thing to consider is that some states, due to the pension and state laws, you will not be eligible for Social Security. We have not worked in one of those states, but when you look at building your income stream in retirement as an educator - it is worthy of considering where you choose to be employed for your career. Pension. 403b (most likely will be voluntary if a mandatory pension is provided). Roth IRA. Social Security. All can and will provide for you. In terms of income stream diversification - we would side on, or error on trying to choose employment where you can utilize all 4. There may also be an option for a 457 plan as well worthy of looking into. A lot of the same issues should be applied to a 457 when it comes to fees.

We would also highly argue ending up in a dual income household. The reality of salaries within a career in education leads to the odds improving for a more secure financial future if an educator is part of a dual income household. We happen to be diversified in that one of us works in a private college/university environment, and the other works in the public school education environment. This means we have a combination between the two of us that includes one pension plan, two 403b plans, Social Security for both, Roth IRA's, tIRA's, and a taxable investing account.

And we have enjoyed playing mini-retirement for 2 or 3 months every year the past three decades during the Summer. Administration, unfortunately, doesn't get to enjoy that benefit. :mrgreen:

hawkfan55
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by hawkfan55 » Wed Nov 15, 2017 11:17 am

Teaching has changed a lot in the past 20-30 years. In some states, teachers are not respected as the professionals they are! Public school teachers are essentially state employees and treated the same as snow plow drivers, state office building janitors, etc. Last year, the state legislature took away teachers rights to collectively bargain as a professional organization with their local school boards except for salary. Previous state law stated that teachers could not strike. School boards and local teacher associations worked together to agree on everything from salary, insurance benefits, working conditions, etc. Other states are also doing this. Many new teachers burn out within first five years. If you go into administration, you'll want to appreciate the people who do the real work... TEACHERS! Try to keep administration lean and your teacher/student ratio as low as possible. Students will benefit!

Another consideration... you will want to teach in a state where you will NOT be subject to WEP. Someday, in retirement, you'll be glad that you participated not only in a PERS/Contributory Retirement Plan but also Social Security.

Good Luck! :happy

futureducator19
Posts: 5
Joined: Mon Nov 13, 2017 9:52 am

Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by futureducator19 » Wed Nov 15, 2017 2:09 pm

CyclingDuo wrote:
Wed Nov 15, 2017 10:31 am
futureducator19 wrote:
Mon Nov 13, 2017 10:06 am
I am in my freshman year of college studying to become a teacher. I am a male going into early childhood education. I am older for my grade, and I plan to get a Masters in Education Literacy right after college which would put me at starting my career at the age of 24.My long term goal is to become a principal and possibly eventually a superintendent. This requires a lot of extra degrees - A masters in Education Admin/Leadership and if I become a superintended most likely a Ed.D. I started a Roth IRA last year with about 5,000.00 in in a total stock market index. I have about 1,000.00 in other savings outside my Roth. I plan on continuing to work throughout college and at least max out my Roth every year. I don't have any student loans and my college is thankfully paid for. I was wondering what advice anyone has as to becoming a teacher, principal, superintendent, or any investing advice in general. Also what is a good GPA to maintain I think I will have finish this semester with anywhere from a 3.8 to a 4.0.
We can speak on the career in education from being closer to the "end zone" of our teaching years with some thoughts you should consider going forward when it comes time to choosing a place of employment in education. Most of this is not for you to worry about right now, but will be a few years down the road when it comes time to land your first job.

Great idea to contribute to your ROTH in these early years while you are studying! Keep that up. We both got our Master's immediately after our undergraduate educations and did not enter the work force until we were 24-25. The advice of getting in the field and working at that point and searching for a program that allows you to continue your education for administration via night/weekend, and Summer classes makes logical sense. An aside: we're old school and totally prefer administrators that have actually taught (walked the walk - before becoming a leader). In our experience over the years, they were always much better administrators than today's crop of leaders who skipped that step and entered right into administration. We just mention that so you keep your eyes open for the attitudes of all the old school educators once you enter the field. We've all had it both ways, and it colors our opinions. :twisted:

Once you do reach the point in time following the earning of your degree(s) and seek to land your first position, we would certainly argue vehemently for considering the benefits package from a particular school district/state before you accept the job. In other words, this needs to be a tantamount part of your research before you go in for the interview.

All things else being equal with several job possibilities, if you can, pick one that has a pension plan and also look at their 403b plans so you can pick one that offers low cost index funds, and low or no cost annual administrative fees (wrap fees) of the plan.

Why is this important?

Whether it be on these forums, or on the 403bwise forums - time, and time again educators post up their dismal fund offerings and high expense ratios that they have to pay in their respective school district's 403b plans to the tune of 2%+. Educators are not high income earners, but can amass comfortable wealth over their careers and a steady retirement income stream thanks to the pension plans, and access to better 403b plans. If you land a job that is unfortunate with regard to the 403b plans they offer and end up paying over 2% per year in fees - over the life of your career, this means you will have to contribute and save twice as much as you would if you had a plan with low cost index funds, and low or no fee administrative costs. You can view that work in the following link to see the difference that makes when you reach the stage after several decades of teaching/educating/administrating:

http://www.retireearlyhomepage.com/twopercentrule.html

Another thing to consider is that some states, due to the pension and state laws, you will not be eligible for Social Security. We have not worked in one of those states, but when you look at building your income stream in retirement as an educator - it is worthy of considering where you choose to be employed for your career. Pension. 403b (most likely will be voluntary if a mandatory pension is provided). Roth IRA. Social Security. All can and will provide for you. In terms of income stream diversification - we would side on, or error on trying to choose employment where you can utilize all 4. There may also be an option for a 457 plan as well worthy of looking into. A lot of the same issues should be applied to a 457 when it comes to fees.

We would also highly argue ending up in a dual income household. The reality of salaries within a career in education leads to the odds improving for a more secure financial future if an educator is part of a dual income household. We happen to be diversified in that one of us works in a private college/university environment, and the other works in the public school education environment. This means we have a combination between the two of us that includes one pension plan, two 403b plans, Social Security for both, Roth IRA's, tIRA's, and a taxable investing account.

And we have enjoyed playing mini-retirement for 2 or 3 months every year the past three decades during the Summer. Administration, unfortunately, doesn't get to enjoy that benefit. :mrgreen:
Wow, thank you! This is fantastic advise and insight, I really appreciate it.

BashDash
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by BashDash » Wed Nov 15, 2017 2:47 pm

-I wish I had found this site before teaching!

-Like Cyclingduo mentioned: Bookmark www.403bwise.com NOW!


-I would even go so far as to not take on a job that does not have a low cost vendor for your 403b.


-Get the masters during teaching.

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CyclingDuo
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Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by CyclingDuo » Wed Nov 15, 2017 8:29 pm

BashDash wrote:
Wed Nov 15, 2017 2:47 pm
-I would even go so far as to not take on a job that does not have a low cost vendor for your 403b.
I guess we should include some obvious caveats for the OP.

If the job included a mandatory pension with the employer match, then the voluntary 403b could be a secondary investment vehicle that would be nice to have as low cost as possible, but not a total deal breaker.

Or if one really was planning on only being in the job for a shorter duration before moving on to a bigger & better school district - then dealing with a higher cost plan for a short duration could be somewhat excused and recovered from in subsequent jobs.

The third caveat revolves around the reality of the pickings for jobs in the initial year may not plentiful, and one might have to take what they can get to get their foot in the employment door which may not involve the best benefit plan. This too, could be recovered from in subsequent years if one actively searches for an upgrade position that included better plans.

In the ideal situation, one could pick and choose between jobs that met the majority of needs and checked off all the boxes:

Good School District
Good Pension
Good 403b Plan/457 Plan
Vacancy available

Working with college undergraduates pursuing a career in education, I realize that the dream job with dream benefits right out of school are few and far between. Many don't have the opportunity to snag employment that includes a great 403b plan right of the gate. Some do, but the reality of job vacancies in various districts are somewhat random based on too many factors to predict (outside of knowing an upcoming retirement, or job move is in the cards).

However, in the cases where one finds themselves in a luxurious position of being able to pick and choose between more than one offer - be very picky. 8-)

futureducator19
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Joined: Mon Nov 13, 2017 9:52 am

Re: Going to College to become a Teacher - 19 Started Roth IRA.

Post by futureducator19 » Wed Dec 06, 2017 9:59 pm

Thank you everyone! I greatly appreciate all of your help and insight!

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