Teachers- Are You Ready to Retire ?

Teachers and retirement

As we approach the end of another school year, I am sure that a number of you are contemplating retirement. Perhaps, this was the year that you felt you stayed too long. You came home every evening totally drained and having difficulty in devising creative new ways to reach your students.  Perhaps this was the year that you developed a nagging injury or recurring illness that made you less than effective in the classroom. Or finally you had that heart to heart discussion with your spouse and talked about all of those other things you want to do with your life. Whatever ever the reason, retirement is not something that you do on the spur of the moment as it must be carefully planned at least to the extent that you can plan for your future.  Here are ten useful suggestions to consider as you plan for such an important life cycle event.  Disclaimer- I am not a financial planner, investment advisor, tax strategist or any other type of financial consultant.

1)      Contact your state pension office. If you are fortunate enough to have taught in a state with a defined benefit pension, contact a pension counselor to determine your pension entitlement and what options you  may have( is your spouse or children eligible)

2)      Get an estimate of your social security benefits.  The Social Security administration sends you a statement of earnings every year just a few months from your birthday. You can go online (  ) or make an appointment at your local Social Security Office.

3)      Check your insurance coverage. Do you have a life insurance policy and is it sufficient to provide for your family? Do you have long term care insurance? The earlier you get this, the lower the annual premiums will be.

4)      Important documents- Do you have a will and is it up to date. Do you have Power of attorney forms for you and your spouse? Have you prepared a living will and health care directive?

5)      Prepare an estimated annual budget. Will you be able to live on your pension, Social Security payments and any investments you may have.

6)      If you have a 403B or an IRA, meet with your financial consultant to determine what the best asset strategy is for you as you enter retirement.

7)      It’s time to downsize. Do you need multiple cars? Do you have a second home?

8)      Where will you live? I recommend a subscription to the magazine “Where to Retire” as a good place to start. If you are not remaining in your current home, what kind of lifestyle do you want and what can you afford? Consider the tax status of state where you choose to life. Does it have a state income tax? Is there a state sales tax?

9)      If you are remaining in your current home, should you consider a reverse mortgage? Consult your banker for this one.

10)   Try to pay off your debt or consolidate your current debts.

Finally I would like to recommend a book- The Truth About Money (Harper Business Press) by Ric Edelman. Here you will find a great deal of useful information about mortgages, credit card management, and insurance as well as investment strategies.

Here’s to a happy retirement !