Please help. Need some advice (Dallas: buy, salary, living in)

[TurtleCreek80]

Originally Posted by Pippin1970

I’m talking about UT Southwestern.

Look south. Depending on your budget, North Oak Cliff, Cedar Hill, Red Oak, Midlothian, etc could all work. It’s kind of the top of the Texas Hill Country & would keep your commute within 30 minutes. No need to pay a premium for suburbs known for top public schools (mostly north/northwest of downtown) as an empty nester.

[ThomasCrown]

Originally Posted by EDS_

To me this is easy, given your situation - especially the short span between now and retirement, the TRS pension would be life changing.


The difference between hitting retirement with little and social security and 12/13/14 yrs. of 403B investments and a vested TRS pension and say 401K investments made on the side is stark and frankly should be a no-brainer for you.

Your best course of action by far would be to take the UT system job, work, save and vest into the TRS pension then the day your retire move to a place with four seasons.

__________


It is hot here in the summer and we do have more or less two seasons something like summer and sort of a long fall mixed with a few very cold days. As a golfer and boater the weather here is pretty great most of the year. We never fully winterize our boat and most years take the thing out evey month of the year.



ETA - we have a place along the Boca Inlet/Lake Boca everyone in my family agrees that the heat + humidity is subjectively worse there than the same here in Dallas.

This post says it all.

[AlecZTexan]

Originally Posted by Pippin1970

I am in need of some advice.

Presently I live in Florida and I hate it because it’s too hot I am originally from England and I love The Four Seasons. I have a job offer at UT in Dallas. And I also have a job offer in Knoxville Tennessee and I can’t for the life of me make a decision. Time is running out and I have to decide.

Both jobs pay about the same. But the one in Dallas has a TRS pension which basically, once you retire you still get paid a salary for life. The job in Knoxville just has a 403B but they do give good bonuses.

The job in Dallas is definitely a better job. But I don’t know if I’m going to like living in Dallas. I have only been downtown. I didn’t have time to check out the suburbs.
I love Knoxville and I know I’ll be happy there.

I was a stay at home mom for 20 years and just got back into the workforce 5 years ago. Recently divorced and got totally screwed on alimony etc.

Needless to say I have absolutely nothing saved up for retirement and I’m 52.


I just need a little bit of guidance right now.

Are there any places in Dallas like Knoxville?

You have to understand how TRS at UT is calculated: Multiply your years of service credit by 2.3%, then times the average of your five highest years of salary. It’s a portion but not the full salary you are earning. For example, if you have 10 years of service credit in TRS, 10 x 2.3 = 23%. Since you are 52, you can estimate how many more years you would stay at UTSW, and how many % your highest 5 years of salary you could get after retirement. Then compare to what you expect from 403B at Tennessee (based on the combined contribution from you and employee, with an estimated annual rate of return ~7%). Based on your situation, I would suggest Tennessee.

[Aggielina]

Also consider healthcare. I am 6 months shy of vesting in TRS. When I left the state I didn't take my contributions. Later I found out that my other Texas public sector employment qualifies me for state retirement as well, as long as I leave the funds there. TRS also told me that if I leave the money in the system, I will be eligible for state health insurance should I want it in the future. I still have to pay for it, though. I decided to leave it and maintain my eligibility.

[EDS_]

Originally Posted by AlecZTexan

You have to understand how TRS at UT is calculated: Multiply your years of service credit by 2.3%, then times the average of your five highest years of salary. It’s a portion but not the full salary you are earning. For example, if you have 10 years of service credit in TRS, 10 x 2.3 = 23%. Since you are 52, you can estimate how many more years you would stay at UTSW, and how many % your highest 5 years of salary you could get after retirement. Then compare to what you expect from 403B at Tennessee (based on the combined contribution from you and employee, with an estimated annual rate of return ~7%). Based on your situation, I would suggest Tennessee.

Are you talking about an older set of rules? The current run down reads way different?

ETA - You know what I apologize. It appears the OP would be at Tier 5 which seems to work as you describe.

[Pippin1970]

Yes. I would be tier 5. I’m 52 would like to retire at 65. Starting out at $72k in Texas.
Tennessee just offered me a slightly higher offer of $76k/ year

I need to make a decision by Monday.

It’s sooooo difficult. And it’s the first time I don’t have a significant other to help with big decisions.

I just not sure if the TRS pension plan is worth it.

[Pippin1970]

Significant

[AlecZTexan]

Originally Posted by EDS_

Are you talking about an older set of rules? The current run down reads way different?

ETA - You know what I apologize. It appears the OP would be at Tier 5 which seems to work as you describe.

What is the current policy? I was instructed about TRP at UTSW a few years ago. Never heard the policy changes.

[Pippin1970]

https://www.trs.texas.gov/TRS%20Docu...tier-guide.pdf

[Taub201]

If you put the $4K per year in pay difference plus another $3K in COLA difference (TN is 7% less than TX per link above and assume $40K per year of spending), that would equate to $151K in savings after 13 years assuming 7% returns. You would also be happier with the weather.

There are arguably more job opportunities in the DFW area than Knoxville if you desire to leave your employer at some point. UTSW is a cool employer with super smart colleagues. A bit of a different caliber than UTK.

Back to funding, does UTK do any retirement plan matching? Take advantage of that and shovel all you can bear into retirement savings. It will all be tax deductible until you withdraw it and you'll be contributing to Social Security. With TRS, I don't believe you enhance your Social Security payout.