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Old 10-23-2016, 02:41 PM
 
Location: Virginia
8,114 posts, read 12,687,324 times
Reputation: 3770

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Quote:
Originally Posted by WestieJeff View Post
So if you happen to live in one of the highest cost of living and highest teacher paying areas, work past normal retirement age (almost certainly normal retirement is after 30 years), and delay SS to 70 years, you can have a great retirement income!

Just pointing out that there is absolutely nothing average about this scenario.

We can cherry pick stats and get practically any number you want.
This is true. It can vary widely.

My wife and I teach for Fairfax County Schools in Northern Virginia (I'm not sure what "Northern Virginia North" references) and I'm happy to answer any questions someone might have regarding salaries, retirement, healthcare, etc. in this particular area.

Sure, salaries are higher than some places. COL is high.

In ten years if I retire at age 55 with 33 years of service I will be able to draw unreduced state (VRS) and supplemental county retirement. Combined they will provide about 75% of my highest three years' average. I feel lucky to have the supplemental county pension. Most districts do not have this. About 8% of my gross is paid into the two systems combined. I choose to contribute a little more than 4% into a 403b.

As far as healthcare, if I was at that retirement age today and kept the same Kaiser plan for my wife and I, my monthly premium cost would be $1,100.91. That drops once the retiree is Medicare eligible. Dental would be $33.93. https://www.fcps.edu/sites/default/f...m%20Charts.pdf
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Old 10-23-2016, 03:37 PM
 
29,782 posts, read 34,871,258 times
Reputation: 11705
Quote:
Originally Posted by tgbwc View Post
This is true. It can vary widely.

My wife and I teach for Fairfax County Schools in Northern Virginia (I'm not sure what "Northern Virginia North" references) and I'm happy to answer any questions someone might have regarding salaries, retirement, healthcare, etc. in this particular area.

Sure, salaries are higher than some places. COL is high.

In ten years if I retire at age 55 with 33 years of service I will be able to draw unreduced state (VRS) and supplemental county retirement. Combined they will provide about 75% of my highest three years' average. I feel lucky to have the supplemental county pension. Most districts do not have this. About 8% of my gross is paid into the two systems combined. I choose to contribute a little more than 4% into a 403b.

As far as healthcare, if I was at that retirement age today and kept the same Kaiser plan for my wife and I, my monthly premium cost would be $1,100.91. That drops once the retiree is Medicare eligible. Dental would be $33.93. https://www.fcps.edu/sites/default/f...m%20Charts.pdf
And at some point SS?
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Old 10-23-2016, 03:42 PM
 
Location: Virginia
8,114 posts, read 12,687,324 times
Reputation: 3770
Quote:
Originally Posted by TuborgP View Post
And at some point SS?
Yes.

About 6.25% of my monthly is paid into SS.
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Old 10-23-2016, 04:03 PM
 
29,782 posts, read 34,871,258 times
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Quote:
Originally Posted by tgbwc View Post
Yes.

About 6.25% of my monthly is paid into SS.
I knew that and needed you to say that. Your county Fairfax is right next to Loudon and is also a massive school system with well paid teachers and a community happy to provide the salary your pension and SS are based on. If I remember right you also have good 403B options.
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Old 10-23-2016, 04:04 PM
 
Location: Living rent free in your head
31,076 posts, read 13,598,798 times
Reputation: 22136
Quote:
Originally Posted by StealthRabbit View Post
I'm not in CA.
I was paying <$3/ day in property taxes, now $42/day. Same house, same pillow, same roof, just older, needing repairs.

An inflation protected pension of $50k would make retirement a picnic. Was headed there, but CEO nabbed it and sent 300,000 engineers packing. 34 yrs service, 6 wks prior to retirement. No pension no hc.

Have survived, will survive.
No sympathy for the 'entitled' on the sweat-backs of taxpayers.

As mentioned, roll the 403(b) and get on with your priviledged life, teachers will have 40+ yrs in retirement.
my mistake, you mentioned calPERS in the same sentence as 1000% increase in property taxes so I thought you were talking about California property tax. We all make choices, some good..some bad. I have a public sector pension, I could have made more in the private sector but I'm glad I stayed in the public sector. I live in California, I know what my pension will be in the future and what my property taxes will be so the only things I have to worry about is what to cook for dinner or whether to go to Tahoe or the Coast on the weekend, life is good
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Old 10-23-2016, 04:35 PM
 
Location: Virginia
8,114 posts, read 12,687,324 times
Reputation: 3770
Quote:
Originally Posted by TuborgP View Post
I knew that and needed you to say that. Your county Fairfax is right next to Loudon and is also a massive school system with well paid teachers and a community happy to provide the salary your pension and SS are based on. If I remember right you also have good 403B options.
Not trying to hide anything here.

I know where I am and that we border Loudoun County, but thanks for pointing that out. I'm not sure what the size of the system has to do with the original topic.

"Well paid" can be debated. i'm not complaining. I'm fine. A study done last year puts us at the lower end of market average.

https://www.restonnow.com/2015/12/08...ary-sacrifice/

https://www.washingtonpost.com/local....html#comments



I don't know how "happy" people are, but remember I also pay taxes and contribute to those pensions, Medicare, SS.

What do you consider "good" 403B options? There is no matching, but again you'd have to elaborate.
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Old 10-23-2016, 04:56 PM
 
29,782 posts, read 34,871,258 times
Reputation: 11705
Quote:
Originally Posted by tgbwc View Post
Not trying to hide anything here.

I know where I am and that we border Loudoun County, but thanks for pointing that out. I'm not sure what the size of the system has to do with the original topic.

"Well paid" can be debated. i'm not complaining. I'm fine. A study done last year puts us at the lower end of market average.

https://www.restonnow.com/2015/12/08...ary-sacrifice/

https://www.washingtonpost.com/local....html#comments



I don't know how "happy" people are, but remember I also pay taxes and contribute to those pensions, Medicare, SS.

What do you consider "good" 403B options? There is no matching, but again you'd have to elaborate.
I mentioned size because some would suggest that the number of retired teachers approaching 100K individually in pension/SS is a lot smaller and not normal. Perhaps not normal but there are a heck of a lot approaching and if married to another like you are it can become more of a norm. Certainly most teacher couples in your region are retiring with combined pension and SS incomes in excess of 120 and many well over 150K. If they also have a well funded 403B that income can easily push them towards and closer to the 200k combined range.
I had to chuckle when you asked about being well paid and at the lower end of your regional market. The top of the pay scale as you note in Fairfax is just over 100K. In fact their are 10 DC area districts in the study all with a maximum over 100K. That may be with a doctorate but a masters/masters equivalency or a masters plus 30 isn't far behind.

Just about all of the DC region districts have decent 403B options. What are considered not good options are when your choices are limited to annuities or high fee mutual funds. Good options are often considered to be low fee index funds. As the OP link mentions over a career it can be a significant difference in realized ROI between high and low fees. A good link for all with 403B plans is:

403(b)wise :: The Leading Source of 403(b) Information on the Web

They have become a benchmark of info on public pensions and I followed them all the time during my working and planning years. I followed them consistently my first few years of retirement but not so often these days.

Tax payers in Fairfax are very happy to pay your salary as Fairfax is a top rated school district nationally and schools as you know are what drive so many folks up there to live where they do. They gladly pay the housing cost and the property taxes with their kids future in mind.
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Old 10-23-2016, 05:10 PM
 
29,782 posts, read 34,871,258 times
Reputation: 11705
Nice chart on how fees can impact your eventual portfolio size:

Fee Impact :: Wise Information for K‑12 Employees from 403(b)wise

Fees, operating rules, and investment objectives can vary greatly among vendors and across investments. Therefore, it is important to understand all of these before you begin contributing to any 403(b) investment. Additionally, some investments impose surrender charges or restrictions on withdrawals. It is important to know if there are surrender charges or restrictions on withdrawals before investing.

In the example used the cumulative difference is over 200K per year based on:
How Fees Affect Return

Quote:
Total value of investment after 35 years, assuming $250 contributed monthly with an 8% average annual return:
In case any one doubts the power of compounding and how you can create a decent portfolio balance here it is in calculator form
http://www.daveramsey.com/blog/inves...r/#/entry_form

Just enter the data your self
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Old 10-23-2016, 05:20 PM
 
12,299 posts, read 15,199,676 times
Reputation: 8108
Quote:
Originally Posted by jiminnm View Post
The last stats I saw from the DOL is that about 80% of full time workers have access to a 401k, and that about 80% of that number participate. For employers over 500 employees, availability was at 90%.
That sounds high. Of course that excludes part time workers, which may account for some of the difference. That 80% participate is not in dispute. And yes, huge employers are more likely to offer them. Problem is so many work for small and medium size firms.
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Old 10-23-2016, 07:37 PM
 
243 posts, read 119,864 times
Reputation: 560
I'm a teacher who is at the top of her pay scale in terms of service/degree. I will retire in two more years with 25 years/MA and will receive 50% of my salary. That's $30,000, not the huge numbers you guys have been touting. I will, however, be receiving some sort of SS since I've always had to pay in. I'll be fine, but I worked hard for that $30,000.

Anyway, there's another alternative in my state (Alabama). You can contribute to RSA-1, which is invested without fees in the same stocks & bonds that the state uses. It's the without fees that is important. You have limited choices as in you only get to decide the percentage of stocks & bonds. But it's done ok.
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