12 year plan for NYSUT teacher

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Topic Author
BashDash
Posts: 1304
Joined: Mon Nov 28, 2016 11:31 am

12 year plan for NYSUT teacher

Post by BashDash »

Hi all,
Thank you for helping me on my journey 9 years ago to help me rid my self of a hideous 403b plan! I had no idea what a Roth IRA or anything was and I am grateful for acting on the knowledge from this forum. Looking for any insight, guidance or blind spots I may have. Just an overall look and feasability of possibly retiring at 55 in NY as a teacher with a pension.

Goal: Husband 43 and Wife 42 : 2 teachers with pension. Fund public school education for 3 kids. Have mortgage paid off by retirement.

Current Holdings: Maxing Roth, 457, and half of the 403b.
taxable brokerage 220k ( all index stock)
403b: 264k (60/40)
403b: 140k (60/40)
457: 139k (60/40)
457: 75k (60/40)
Roth: 62 K ( all index stock)
Roth 62 K ( all index stock)
529:
49k ( 9 year old)
61k (6 year old)
10k ( 2 year old)

paid off cars
150k left on mortgage 4%


Thanks!!
bg5
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Re: 12 year plan for NYSUT teacher

Post by bg5 »

Can you give us an idea of what your pensions will be each year? What are you estimating your expenses to be each year during retirement?
Topic Author
BashDash
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Joined: Mon Nov 28, 2016 11:31 am

Re: 12 year plan for NYSUT teacher

Post by BashDash »

Thanks for the reply!
60% of final average salary for one and a little less than that for the other....Hard to tell what the final average salary is....Current salary is 139k....


Not positive what retirement spending would be. This is obviously very important....I am a little worried about paying that youngest child college while not working.....
Grt2bOutdoors
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Location: New York

Re: 12 year plan for NYSUT teacher

Post by Grt2bOutdoors »

BashDash wrote: Wed Oct 04, 2023 12:45 pm Thanks for the reply!
60% of final average salary for one and a little less than that for the other....Hard to tell what the final average salary is....Current salary is 139k....


Not positive what retirement spending would be. This is obviously very important....I am a little worried about paying that youngest child college while not working.....
You have $220K in the taxable brokerage, if you believe money is fungible and you will have your pensions in addition to your other retirement savings, your worry is misplaced.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Topic Author
BashDash
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Re: 12 year plan for NYSUT teacher

Post by BashDash »

Thanks for the reply. I do realize that. That brokerage has turned more into an emergency fund as my wife returned back to work after maternity. Taxes, daycare etc I find myself selling stock often. Our paychecks with all the deferrals aren’t big enough to cover costs.
Grt2bOutdoors
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Location: New York

Re: 12 year plan for NYSUT teacher

Post by Grt2bOutdoors »

BashDash wrote: Wed Oct 04, 2023 1:45 pm Thanks for the reply. I do realize that. That brokerage has turned more into an emergency fund as my wife returned back to work after maternity. Taxes, daycare etc I find myself selling stock often. Our paychecks with all the deferrals aren’t big enough to cover costs.
Daycare will not be there forever.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Uniballer
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Re: 12 year plan for NYSUT teacher

Post by Uniballer »

BashDash wrote: Wed Oct 04, 2023 1:45 pm Taxes, daycare etc I find myself selling stock often. Our paychecks with all the deferrals aren’t big enough to cover costs.
I think it is unlikely that you are doing better by selling taxable stock to meet expenses so you can defer more income in retirement accounts (capital gains taxes are lower than ordinary income taxes). You should probably consider deferring less so you can meet your expenses directly from W2 income.
Topic Author
BashDash
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Re: 12 year plan for NYSUT teacher

Post by BashDash »

Good point. I’m still adjusting to having multiple incomes. I would prefer to leave that untouched. There are still some blue chip stocks I need to unwind in there too
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CyclingDuo
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Re: 12 year plan for NYSUT teacher

Post by CyclingDuo »

BashDash wrote: Wed Oct 04, 2023 12:45 pm Thanks for the reply!
60% of final average salary for one and a little less than that for the other....Hard to tell what the final average salary is....Current salary is 139k....


Not positive what retirement spending would be. This is obviously very important....I am a little worried about paying that youngest child college while not working.....
You could always work a few more years beyond 55 to take care of the college funds, boost the pension amount (years of service), and sock away a bit more in the investment accounts.

It’s difficult to nail down your expenses in retirement right now since it is so far away. Plus the empty nest expenses vs. having others in the nest will be quite different expenses wise.

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
Topic Author
BashDash
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Re: 12 year plan for NYSUT teacher

Post by BashDash »

Thanks cycling duo! That reminds me district sometimes offers 30k incentive to leave at 55.
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CyclingDuo
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Re: 12 year plan for NYSUT teacher

Post by CyclingDuo »

BashDash wrote: Wed Oct 04, 2023 4:54 pm Thanks cycling duo! That reminds me district sometimes offers 30k incentive to leave at 55.
Sure they do. They want to replace you with a lower salary entry level teacher. Staying another year or two, or a few is going to yield much more for you than a $30K incentive. :beer

You’ll know more at that time once you get there as well as how funding the college education is going, what your interest/desire to continue teaching at that time may or may not be - as well as your financial picture then.

My wife went all the way to 65 1/2. I experienced a forced pivot at age 56-59 into a different field, and am still going strong.

The main point was to be flexible in order to address your worry of funding the youngest’s college education. You’ll still have some remaining human capital to convert into income providing your health holds.

CyclingDuo
"Save like a pessimist, invest like an optimist." - Morgan Housel | "Pick a bushel, save a peck!" - Grandpa
Topic Author
BashDash
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Re: 12 year plan for NYSUT teacher

Post by BashDash »

Thanks for all the replies! Cycling duo I always enjoy reading your perspective and experience. I just adjusted our retirement contributions to be 50% traditional and 50% roth......The traditional contributions should lower our MAGI enough to allow us to contribute to the Roth Ira as well. I think if we keep this up that will be a good thing. Plus, the taxable account is my "mistake" account that I started pre-bogleheads. Hard to believe that has grown so much over the years. It's mostly indexed at this point and I'm hoping that will be good to draw from as a miscelaneous accout and college account too. It feels good to go 50% traditional 50% roth as I have been mulling over it for years and think this is a good time to do it and make a decision. I realize it won't be perfect but having a nice chunk of tax free money won't be a bad thing.
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alpenglow
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Re: 12 year plan for NYSUT teacher

Post by alpenglow »

BashDash wrote: Wed Oct 04, 2023 12:45 pm Thanks for the reply!
60% of final average salary for one and a little less than that for the other....Hard to tell what the final average salary is....Current salary is 139k....


Not positive what retirement spending would be. This is obviously very important....I am a little worried about paying that youngest child college while not working.....
We are in very similar places in our teaching careers. I would guess that you will have six-figure pensions in retirement, so you'll be more than fine.
Topic Author
BashDash
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Re: 12 year plan for NYSUT teacher

Post by BashDash »

Thanks alpenglow for the vote of confidence. I think I remembered you mentioning you didn’t have the Roth option. For some reason I only asked once and it magically happened. Surprising .
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alpenglow
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Re: 12 year plan for NYSUT teacher

Post by alpenglow »

BashDash wrote: Sat Oct 14, 2023 11:15 am Thanks alpenglow for the vote of confidence. I think I remembered you mentioning you didn’t have the Roth option. For some reason I only asked once and it magically happened. Surprising .
I couldn't get central office to add it to our 403b, but I was successful in getting them to add it to our our 457! It happened surprisingly fast too.
Topic Author
BashDash
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Re: 12 year plan for NYSUT teacher

Post by BashDash »

Great to hear. My district has what seems to be a hundred 403b options and somehow all of them now have the Roth option. I’m pretty sure I’m the only one using the Roth option. I have to use security benefit direct invest since no vanguard or fidelity option.
Topic Author
BashDash
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Re: 12 year plan for NYSUT teacher

Post by BashDash »

Bump. Eleven years to go lol.
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