A sad tale for a friend who didn't

Ally said:
I don't know what some people think, but I see it among my friends, too. We know a teacher across the street, a long time divorced lady. She just retired and came over furious because she went to social security and says she only now found out that TX teachers don't pay into SS, and therefore don't get it. She was yelling "how do they expect me to live on $1700 a month?" (her pension) I couldn't believe she didn't know this. But she always plays a victim, so who knows.
Click to expand...

I wonder if teachers in MO get SS along with the pension?
 
Nords said:
You probably feel the same way about reading nuclear reactor plant manuals that I feel about reading bond offerings and IPO prospectii.

However we can both use electricity and invest in bonds, so I think the problems come when people can't (or won't) take responsibility.
Click to expand...

I was thinking more along the lines of understanding that what you charge on a credit card has to be paid back. Different animal. Kind of like graspingthat the submarine eventually has to resurface.
 
Ally said:
I don't know what some people think, but I see it among my friends, too. We know a teacher across the street, a long time divorced lady. She just retired and came over furious because she went to social security and says she only now found out that TX teachers don't pay into SS, and therefore don't get it. She was yelling "how do they expect me to live on $1700 a month?" (her pension) I couldn't believe she didn't know this. But she always plays a victim, so who knows.
Click to expand...


I know that others have commented on this post... I just want to throw my 2cents in...

She must not have worked that long to get $1700.. that is low for a life time teacher...

Also, if she had worked someplace else and got SS... it would be a lot less than what she is getting from TRS...

From what I have heard from my mom and sister.... it was 'common knowledge' that you would not get SS as a Texas teacher... heck, they passed a law that would prevent them from getting it unless it was under their earnings... there was a loophole that allowed a teacher to get SS if they retired at a job where they paid into SS.... there were a few school districts that allowed a teacher to do a single day work that paid into SS... this meant that you retired while paying SS and qualified for SS... when this loophole existed, Texas was the state that had the largest number of teacher doing this by far... this loophole has been closed...

I do think that teachers are told they do not qualify for SS.... but who knows if that happened or not...
 
brewer12345 said:
I was thinking more along the lines of understanding that what you charge on a credit card has to be paid back. Different animal. Kind of like graspingthat the submarine eventually has to resurface.
Click to expand...


Yea... if not, then it is just another sunk boat... :facepalm:
 
Love the Beamer!

We have another friend whose husband retired at 57 from a guvmint job and got a great pension. She is about 5 years younger, quit work at 62 and took her SS. We were having a recent discussion and either my wife or I mentioned how much we expect to get from SS by waiting to take it (We shouldn't need it for a few years anyway and my wife is 5 years younger than me, so it benefits her). Our friend thought I was out of my mind to think I could get that much from SS. She didn't realize it goes up every year until you're 70, if you delay it. And she was in the financial world too.

It is amazing.
 
Surewhitey said:
I just try to be the better than average stepfather & hubby...our daughter is great!
Click to expand...

You will be richly blessed. I was divorced when my children were very small and their dad wasn't around much, then he died. My husband raised them and they love him so much. Now that there are grandchildren, they love for him to be around the grandchildren and arrange for them to spend time together:), which tells me how much they valued his parenting.
 
brewer12345 said:
...Most people have never been taught this stuff, and many seem incapable of really learning even when you teach them. I don't know why this is the case, but it appears to be a fact of life. That being the case, I think there should always be a an option of a simple, straightforward financial product in every market that should be the default for consumers; people should be automatically enrolled in a retirement pan where they work (compulsory would be even better); and a required perasonal finance class should be taught in each year of HS. I suppose that is all as likely as me flying my dining room table to the moon...
Click to expand...

Having some mentally defective relatives (some nature, some from accidents) I know this to be true. They are simply incapable of understanding even simple (not even compound) interest, and planning ahead and saving money is beyond them. One of them gets SS benefits from the earnings record of an ex-spouse, the other from SSI. I paid into Social Security for a few years, and will get nothing back from it personally because I'm vested in a government pension, but I have no complaints because I know that so many helpless people benefit from it. That is the cost of living in a civilized society. I don't think anyone should have to live under a bridge in this country, we have so much excess wealth. My point is that the system Brewer says we should have, we do have, unless it is unwisely demolished.
 
rec7 said:
I wonder if teachers in MO get SS along with the pension?
Click to expand...

No, MO teachers do not.They pay in 14.5% of their salary and that is matched by district. It has been going up a half percent each year for several years to help keep system healthy down the road. Many teachers who teach half their career in a SS/pension state then transfer to one of the 14 states like MO that don't get a rude awakening come retirement. Instead of basically getting 2 half pensions, they lose the SS part of previous teaching pension because of the non contributing SS pension system MO has.
 
Slight correction, they lose up to 60% of their SS because of the WEP provision. Most of these people are unaware of it until retirement.
 
DH and I could have planned much, much better for retirement and I wish we had!

We will make it, though not in the style we could have with more foresight. Neither one of us is very financially-savvy. Suzy Orman is about as complicated as I ever read/digested. We will have teacher pensions, modest 403b's, and SS. (Arkansas)

DH's teacher pension, after 26 years of teaching and 3 "reciprocal" years of working for the state, will be a bit over $1700. After taxes, it should (I hope) be around $1600.00. So, I understand how a lifelong of teaching can result in a pension in that ballpark. I am very grateful we have the 403b's.
 
I do not want to judge as I have made my share of mistakes.

It is really easy to get into a habit of spending much when you have high earnings as time is often limited and its easier to go out to dinner and pay someone to do things for you.

People often do not have anyone to learn from or guide them.
 
ohyes said:
DH and I could have planned much, much better for retirement and I wish we had!

We will make it, though not in the style we could have with more foresight. Neither one of us is very financially-savvy. Suzy Orman is about as complicated as I ever read/digested. We will have teacher pensions, modest 403b's, and SS. (Arkansas)

DH's teacher pension, after 26 years of teaching and 3 "reciprocal" years of working for the state, will be a bit over $1700. After taxes, it should (I hope) be around $1600.00. So, I understand how a lifelong of teaching can result in a pension in that ballpark. I am very grateful we have the 403b's.
Click to expand...
Congratulations on having the foresight to contribute to a 403b. That of itself put you ahead of many educators! Comparing pensions of teachers across state boundaries can be tricky at best (not counting instate where neighboring districts salaries can be considerably different, too). A teacher north of your border may appear to have a better pension, but since they did not pay into SS and had more coming out of their paycheck the difference could be minimal. Pensions are usually devised in a manner that the bulk of your pension is determined in the final few years. Taking early retirement instead of full retirement really effects your pension. Since the Texas teacher did not pay into SS I would be stunned if she worked more than 20 years. In her case I wouldn't be surprised if her pension would have been close to 50% higher if she had taught 5 more years. That is the about the difference in MO pension from 25 to 30 years.
 
FreeAtLast said:
I do not want to judge as I have made my share of mistakes.

It is really easy to get into a habit of spending much when you have high earnings as time is often limited and its easier to go out to dinner and pay someone to do things for you.

People often do not have anyone to learn from or guide them.
Click to expand...
Also, some young people are not exactly eager to be given guidance.

I could help my sons get a handle on their expenses, but they have wives with their own desires, and they have all been very successful so they do not see themslves as needing much guidance.

Reading this board one can see that parents and their ideas are not always warmly welcomed, so I limit my spouting off to this board and get agreeable as I can be around any flesh and blood human, especially my family. At this time in life, I need them emotionally more than they need me, and I am not going to make myself into a pita even if on some things I think I may know better. It is also true that I may not. :)

An example is this past Sunday, Fathers' Day. My woman friend called me and asked if I would like to come to dinner. I told her that I would, if I could come late afternoon. I had not heard from either of my kids about a Father's Day get together, so if they did not have plans for me this would be a first. I've been a father for 35 years, and every year got honored on Father's Day. I have considerd this a extremely nice act on their part and on the part of my former wife, but I also know that they are busy and I should expect to get along by myself sometimes. Long about time I thought I would just go downtown and entertain myself a bit, one son called and said- can you come to dinner? I said no, I wasn't sure you guys were free, so I accepted an invite- but I can meet you guys in the bar of your choice right now. So they both and wives met me at a bar in my neighborhood and we spent a few hours together which I enjoyed immensely. And I realized just how disappointed I would have felt had they not called.

Ha
 
Koolau said:
I suppose I would have no problem with how anyone else spends/saves their money. The problem comes when the "grasshopper" wants to eat some of my stash later on. Unfortunately, there's always someone willing to buy the grasshopper's vote with my money.
Click to expand...

Which is exactly what will happen if they decide to means test social security and/or medicare. Those of us who LBYM will have more means because we gave up something yesterday so that we could have something today and for many tomorrows.
 
dancinmama said:
Which is exactly what will happen if they decide to means test social security and/or medicare. Those of us who LBYM will have more means because we gave up something yesterday so that we could have something today and for many tomorrows.
Click to expand...

SS is already means tested for income tax against it.

Future means testing will probably not result in: You do not qualify because you have some other resources. It will probably result in some sort of progressive tax. In the case of Medicare, perhaps increased premium.

The system will be strengthened through several measures. Both some restructuring of the programs and taxes (through various methods).

The debate will be about who pays!
 
Forget the Grasshopper stuff. Ms G. and I still look back at all the stuff we spent our money on, with remorse. And we were still LBYM and saving 60% of our income.

I have a brother with 2 foreclosures, one short sale and a bankruptcy. Still today his wife says " He makes a good salary, we can afford it". He is older than me and will work until he is dead.
 
grasshopper said:
Forget the Grasshopper stuff. Ms G. and I still look back at all the stuff we spent our money on, with remorse. And we were still LBYM and saving 60% of our income.

I have a brother with 2 foreclosures, one short sale and a bankruptcy. Still today his wife says " He makes a good salary, we can afford it". He is older than me and will work until he is dead.
Click to expand...

We all regret certain purchases, investment mistakes, etc... the key is to learn the lesson and not make them again.
 
chinaco said:
Future means testing will probably not result in: You do not qualify because you have some other resources. It will probably result in some sort of progressive tax. In the case of Medicare, perhaps increased premium.
Click to expand...

This is in fact the current situation, and it has been for several years anyway.

Ha
 
Mulligan said:
Congratulations on having the foresight to contribute to a 403b. That of itself put you ahead of many educators! Comparing pensions of teachers across state boundaries can be tricky at best (not counting instate where neighboring districts salaries can be considerably different, too). A teacher north of your border may appear to have a better pension, but since they did not pay into SS and had more coming out of their paycheck the difference could be minimal. Pensions are usually devised in a manner that the bulk of your pension is determined in the final few years. Taking early retirement instead of full retirement really effects your pension. Since the Texas teacher did not pay into SS I would be stunned if she worked more than 20 years. In her case I wouldn't be surprised if her pension would have been close to 50% higher if she had taught 5 more years. That is the about the difference in MO pension from 25 to 30 years.
Click to expand...


No... Texas is different.... you get 2.2% per year of the average highest 5 years of pay (I think that is right now... it used to be 3)...

So, 5 more years is only 11% more... plus your salary increases which is not much...
 
You must log in or register to reply here.

Similar threads

J
Need Advice for Stepbrother
2
Replies
43
Views
3K
ncbill
N
R
College Resident Assistantship(RA) and filing 2023 1040 tax form
Replies
0
Views
226
retire2020
R
M
Gift or bridge loan for son house purchase
Replies
2
Views
394
mf15
M
V
Gambling losses vs contractor fraud - tax loss harvesting?
Replies
6
Views
755
Aerides
Aerides
T
Looking for article on annuity
2
Replies
35
Views
2K
Sunset
Sunset

Latest posts

Back
Top Bottom