Texas Teacher Retirement/other options?

[badatmath]

Yes. I’d consider that. Depends I guess on the difficulty to get certified there and that process plus maybe how far away from my family home it may be ?

Why does the distance matter? Do you visit a lot? Are you renting it out and have to maintain it? Is it going to keep generating income for you in retirement or is it just sentimental?

 

[Montecfo]

Before I pose this question- I'm not looking for criticism. None of that actually helps anyone. I am looking for "If this was your situation what would you do?" answers. I don't want any "Well, if you had...." whatever the rest of that statement would be is essentially not helpful, because if I had done whatever you're about to suggest--maybe I would not be asking anything. That said.... what I am looking for here is pure impartial advice to a question and it's a bit complicated in terms of the choices in front of me from people who know education and maybe will understand all of these deep questions more than the average person will ?

To some-- the answer will seem easy. To others.... you may understand my conflict and as a result will instantly understand why I am asking. There are some related factors that I won't go into here--just because of some of the privacy related to it--but, yes those factors are the underlying issue that creates this whole scenario-

That said.... here is my question:

As a teacher in Texas, we pay into Texas Teacher Retirement. The system is NOT a good one. For me, normal age retirement is 65. I am 52. So, I certainly have more time to pay in. I also pay a little into a Roth IRA. Not a lot, but I do what I can after rent, and all the things.

That said, I don't love Texas. Less and less these days. The political climate and how it's affecting me personally is a lot. Maybe others can just ignore it. And I can too to a degree, but it is also getting dragged into teaching and schools and that bothers me.

As it stands now, my Texas Teacher retirement will give me about $2200 a month when I retire. Yes, I'll also have some income from the Roth IRA too. Even tho with other jobs I have paid into Social Security too, teachers can't really draw from it. If we do, it will be reduced due to the WEP. My TX teacher retirement was affected by me having to withdraw some funds in 2010 due to a massive personal issue. I can't really talk about it--but, yea it will definitely drag on my teacher retirement to which I can't do much about at this pont.

I have a home in Louisiana. It is my late parents home. No mortgage, no rent..etc. But, if I do that when I retire at 65, my Texas retirement will be reduced by about $900 since I will have stopped paying into the system. I will be paying into Louisiana--but, it takes 5 years to vest into the Louisiana Teacher Retirement. So, by the time I am vested it, it seems I won't have earned much in the way of retirement. I'm not sure if it would be enough to offset what I'd be getting reduced by in Texas by having left.

Also, in Louisiana, I am going to face the same exact type of political climates infiltrating into our schools. Also, currently the legislature there is reducing teacher pay stipends that have been used to increase teacher pay there. So, I'd definitely be getting a major pay reduction from what I currently make.

Those are all negatives. To throw another idea in- what if I move to Colorado ? I am certified there. The political climate in the way it affects me as a person is very different there. My target district pays much more than here. I'd have same normal age retirement at 65, but with PERA I would not have to vest in. I'd qualify for PERA from day one of work. If I pay in the whole time, I'd definitely make up the difference I'd lose with Texas plus, they have an additional state plan that I could qualify to pay into.

The negative- rent is super high there. The cost of living would hurt. There is the option to get a roommate OR rent a basement out from someone. Not an idea thought, but an option.

That said-- and yes I know I haven't gone into super detail- but given what I have shared ?

Would you just stay in Texas ?

Would you move to Louisiana?

OR would you scratch it all and head to Colorado and maybe have 2 systems to draw from plus a state sponsored system as well ? Knowing that you'd have to rent a basement

Signed-

Teacher in Texas.......

Can you get credit in Louisiana for your tenure in Texas? Back in the day Texas would give you credit for service elsewhere. Virginia also. Perhaps Louisiana does this or Colorado.

My general answer is stay in Tx unless you can find a key to reduce costs or increase income sharply.

 

[Koolau]

Before I pose this question- I'm not looking for criticism. None of that actually helps anyone. I am looking for "If this was your situation what would you do?" answers. I don't want any "Well, if you had...." whatever the rest of that statement would be is essentially not helpful, because if I had done whatever you're about to suggest--maybe I would not be asking anything. That said.... what I am looking for here is pure impartial advice to a question and it's a bit complicated in terms of the choices in front of me from people who know education and maybe will understand all of these deep questions more than the average person will ?

To some-- the answer will seem easy. To others.... you may understand my conflict and as a result will instantly understand why I am asking. There are some related factors that I won't go into here--just because of some of the privacy related to it--but, yes those factors are the underlying issue that creates this whole scenario-

That said.... here is my question:

As a teacher in Texas, we pay into Texas Teacher Retirement. The system is NOT a good one. For me, normal age retirement is 65. I am 52. So, I certainly have more time to pay in. I also pay a little into a Roth IRA. Not a lot, but I do what I can after rent, and all the things.

That said, I don't love Texas. Less and less these days. The political climate and how it's affecting me personally is a lot. Maybe others can just ignore it. And I can too to a degree, but it is also getting dragged into teaching and schools and that bothers me.

As it stands now, my Texas Teacher retirement will give me about $2200 a month when I retire. Yes, I'll also have some income from the Roth IRA too. Even tho with other jobs I have paid into Social Security too, teachers can't really draw from it. If we do, it will be reduced due to the WEP. My TX teacher retirement was affected by me having to withdraw some funds in 2010 due to a massive personal issue. I can't really talk about it--but, yea it will definitely drag on my teacher retirement to which I can't do much about at this pont.

I have a home in Louisiana. It is my late parents home. No mortgage, no rent..etc. But, if I do that when I retire at 65, my Texas retirement will be reduced by about $900 since I will have stopped paying into the system. I will be paying into Louisiana--but, it takes 5 years to vest into the Louisiana Teacher Retirement. So, by the time I am vested it, it seems I won't have earned much in the way of retirement. I'm not sure if it would be enough to offset what I'd be getting reduced by in Texas by having left.

Also, in Louisiana, I am going to face the same exact type of political climates infiltrating into our schools. Also, currently the legislature there is reducing teacher pay stipends that have been used to increase teacher pay there. So, I'd definitely be getting a major pay reduction from what I currently make.

Those are all negatives. To throw another idea in- what if I move to Colorado ? I am certified there. The political climate in the way it affects me as a person is very different there. My target district pays much more than here. I'd have same normal age retirement at 65, but with PERA I would not have to vest in. I'd qualify for PERA from day one of work. If I pay in the whole time, I'd definitely make up the difference I'd lose with Texas plus, they have an additional state plan that I could qualify to pay into.

The negative- rent is super high there. The cost of living would hurt. There is the option to get a roommate OR rent a basement out from someone. Not an idea thought, but an option.

That said-- and yes I know I haven't gone into super detail- but given what I have shared ?

Would you just stay in Texas ?

Would you move to Louisiana?

OR would you scratch it all and head to Colorado and maybe have 2 systems to draw from plus a state sponsored system as well ? Knowing that you'd have to rent a basement

Signed-

Teacher in Texas.......

I would first determine my financial needs in each situation. It sounds like you know about what your income would be in each situation you've mentioned.

How much income will you actually need, depending upon where you end up? This will take a fair amount of research. Figuring out (for instance) your tax burden is more difficult than it sounds. I've mentioned that when I moved to Hawaii, I thought our taxes would be much higher, based on what tax info was available on the web. You may need professional assistance to figure potential taxes and actual living expenses.

I'm no professional and I'm sticking my nose where it doesn't belong, but I also sense you may be facing issues beyond the financial and even the w*rk climate and state political climate(?)

When I researched moving in retirement, the one thing that always came up - again and again: "You're still the same person no matter where you live." Don't count on a move to improve everything (or anything) other than the most immediate issues (like maybe financial.)

Please forgive me for mentioning things you didn't ask about. Best of luck in figuring out your future.

 

[Exchme]

I'm going to stay away from the political aspects of OP's post, that will get the thread shut down.

I have a younger Texas teacher in the family and they have no pension. They have options in a 457b (annuities), but could also choose to use a tax deferred or Roth 403b (investments). Perhaps OP chose an annuity?

Unfortunately, the schools gives lots of leeway to annuity sales people to run the halls and sell the teachers saying "the district sent me to help you". Our family member had no idea this was a commissioned sales person and got sold a crappy, high priced, indexed annuity. This goes on all over the country as insurance companies will manage the plans at low/no cost in order to get access to new victims customers.

Finally found that there was an investment option called the Teachers Pension Exchange and a very hard to find sub-option that allowed them to hold common Vanguard funds like Vanguard Total Market, Vanguard 500 and Vanguard Total Bond, along with a variety of target date funds. When I say "very hard to find", I mean that even though we knew this existed, we couldn't find it and had to call the Teacher's Pension Exchange folks to have them point us to the highly unlikely sounding option. So part of the money problems may be due to getting sold a poor investment.

 

[Koolau]

I'm going to stay away from the political aspects of OP's post, that will get the thread shut down.

I have a younger Texas teacher in the family and they have no pension. They have options in a 457b (annuities), but could also choose to use a tax deferred or Roth 403b (investments). Perhaps OP chose an annuity?

Unfortunately, the schools gives lots of leeway to annuity sales people to run the halls and sell the teachers saying "the district sent me to help you". Our family member had no idea this was a commissioned sales person and got sold a crappy, high priced, indexed annuity. This goes on all over the country as insurance companies will manage the plans at low/no cost in order to get access to new victims customers.

Finally found that there was an investment option called the Teachers Pension Exchange and a very hard to find sub-option that allowed them to hold common Vanguard funds like Vanguard Total Market, Vanguard 500 and Vanguard Total Bond, along with a variety of target date funds. When I say "very hard to find", I mean that even though we knew this existed, we couldn't find it and had to call the Teacher's Pension Exchange folks to have them point us to the highly unlikely sounding option. So part of the money problems may be due to getting sold a poor investment.

And I have no idea, but one wonders if the "hard to find" issue is intentional and perhaps encouraged by said annuity perveyors of loaded-up annuities. Just me being cynical - again. YMMV

 

[Exchme]

And I have no idea, but one wonders if the "hard to find" issue is intentional and perhaps encouraged by said annuity perveyors of loaded-up annuities. Just me being cynical - again. YMMV

You are not the only one that wonders that! They were assured there were no fees and the indexed annuity would grow with the market and never lose money. Had my family member's investments been in the market, they would have doubled over the period of time involved (after taking into account that it would have started at zero and grown slowly with paycheck deposits). Instead it was worth slightly less upon withdrawal than the sum of the deposits.

Apparently, this is very common among school districts as they have either have no money for better retirement account custodians or they have been "captured" by those nice insurance industry folks that give some money to help build a new gym.

 

[Badger]

We are both retired teachers in Florida but only my wife draws a pension from the state. I am not sure why you only give 3 choices of states in which to live. I would think selling the house in La would be a good idea since you already have reservations about living there. Whether CO is the best choice for you I don't know. Consider that you may want to expand your search to the other 47 states for what they might offer. A spread sheet with Pros and Cons would be helpful to narrow your choices.
At 52 you are smart to start thinking about this before too many more years pass.

 

[Texas Proud]

I'm going to stay away from the political aspects of OP's post, that will get the thread shut down.

I have a younger Texas teacher in the family and they have no pension. They have options in a 457b (annuities), but could also choose to use a tax deferred or Roth 403b (investments). Perhaps OP chose an annuity?

Unfortunately, the schools gives lots of leeway to annuity sales people to run the halls and sell the teachers saying "the district sent me to help you". Our family member had no idea this was a commissioned sales person and got sold a crappy, high priced, indexed annuity. This goes on all over the country as insurance companies will manage the plans at low/no cost in order to get access to new victims customers.

Finally found that there was an investment option called the Teachers Pension Exchange and a very hard to find sub-option that allowed them to hold common Vanguard funds like Vanguard Total Market, Vanguard 500 and Vanguard Total Bond, along with a variety of target date funds. When I say "very hard to find", I mean that even though we knew this existed, we couldn't find it and had to call the Teacher's Pension Exchange folks to have them point us to the highly unlikely sounding option. So part of the money problems may be due to getting sold a poor investment.

What school district? I did not think they could opt out of TRS.

 

[kwise]

Have you checked into teaching in Wyoming? The pay is above average, there is a good state retirement system, and the districts pay into Social Security. There are lower COL areas in the state. My husband and I both retired from teaching jobs in north central Wyoming. Available teaching jobs in Wyoming are pretty plentiful, depending upon your certified area(s). I wish you the best as you look to make a decision about where to move.

 

[Koolau]

Have you checked into teaching in Wyoming? The pay is above average, there is a good state retirement system, and the districts pay into Social Security. There are lower COL areas in the state. My husband and I both retired from teaching jobs in north central Wyoming. Available teaching jobs in Wyoming are pretty plentiful, depending upon your certified area(s). I wish you the best as you look to make a decision about where to move.

From what I have seen, getting credentials in another state is often problematic. Even teachers with amazing university credentials as well as long teaching histories do not qualify for teaching credentials in many other states. I never understood this, but figure it's based on laws protecting current teachers within the state. YMMV

 

[kwise]

From what I have seen, getting credentials in another state is often problematic. Even teachers with amazing university credentials as well as long teaching histories do not qualify for teaching credentials in many other states. I never understood this, but figure it's based on laws protecting current teachers within the state. YMMV

In Wyoming, as in many areas of the US, finding certified teachers to fill all of the openings that exist is difficult. I believe that getting certified is getting a little less cumbersome and that they are working with people from out of state. If someone is interested in teaching in Wyoming, they need to get in touch with the Professional Teaching Standards Board (PTSB) in Cheyenne, WY.