Just offering that a mixture is looking very good right now. My example is that Alaska teaching is DC only-teachers contribute 8% of salary and the state contributes 7%. partial vesting occurs, don't remember details, but I distinctly remember logging in one day about March of my fifth year and I had been advanced to 100% vested. I worked a sixth year. If I thought that was good, I hadn't seen anything, as my account ballooned from 60k end of year 5 to its final destination point sometime in the next week, hopefully....the final number is expected to be 96k.
I started taking the gains and putting them into a money market fund May 2, and finished with the present amount 94k mid May. I had met my goal.
The money will sit in the money market account drawing a nice interest rate until it becomes time to buy the 6 years of Alaska service from the great state of Texas.
Texas allows out-of-state service to be purchased- from 1 year all of the way to 15 years. There is a key qualifier, the teacher must have the money completely out of the originating state. A Texas teacher is not allowed to apply to purchase the years until said teacher has worked 90+ days into the school year, AFTER Sept. 1. By the end of November, I will know the exact date, which will be in late January.
On that date, I will apply to buy the six years of Alaska service and my latest estimate is that will cost between 92k and 100k. The money will be moved to buy the six years sometime in the spring of 2025.
6 years of service to the state of Texas from much earlier in life will also count toward the pension. 23 years teaching before 2024 plus 24-25 school year plus the six years gives me 30 years. Teaching four more years gives me a very good pension, because the high five avg. salary will be calculated using the modern salaries from 24-25 until the end, if I make it five years, starting 24-25. 34 x 2.3 = 78.2% of the high five avg salary.
If that pension is approaching 60k+ which I think it will, then I will turn around and almost certainly do a partial lump sum option, to be the cherry on top of the retirement savings accounts. A person can take as much as 3 years of pension and send that to an IRA. my example might be 180k PLSO plus an already substantial 500k to equal 680k. Doing the 3 year PLSO reduces the pension to 75% of the original amount.
What I like the most is that the combination of having a retirement account and a pension gives great flexibility in making decisions.
I started taking the gains and putting them into a money market fund May 2, and finished with the present amount 94k mid May. I had met my goal.
The money will sit in the money market account drawing a nice interest rate until it becomes time to buy the 6 years of Alaska service from the great state of Texas.
Texas allows out-of-state service to be purchased- from 1 year all of the way to 15 years. There is a key qualifier, the teacher must have the money completely out of the originating state. A Texas teacher is not allowed to apply to purchase the years until said teacher has worked 90+ days into the school year, AFTER Sept. 1. By the end of November, I will know the exact date, which will be in late January.
On that date, I will apply to buy the six years of Alaska service and my latest estimate is that will cost between 92k and 100k. The money will be moved to buy the six years sometime in the spring of 2025.
6 years of service to the state of Texas from much earlier in life will also count toward the pension. 23 years teaching before 2024 plus 24-25 school year plus the six years gives me 30 years. Teaching four more years gives me a very good pension, because the high five avg. salary will be calculated using the modern salaries from 24-25 until the end, if I make it five years, starting 24-25. 34 x 2.3 = 78.2% of the high five avg salary.
If that pension is approaching 60k+ which I think it will, then I will turn around and almost certainly do a partial lump sum option, to be the cherry on top of the retirement savings accounts. A person can take as much as 3 years of pension and send that to an IRA. my example might be 180k PLSO plus an already substantial 500k to equal 680k. Doing the 3 year PLSO reduces the pension to 75% of the original amount.
What I like the most is that the combination of having a retirement account and a pension gives great flexibility in making decisions.
Statistics: Posted by AlaskaTeach — Tue Jun 18, 2024 10:55 pm — Replies 41 — Views 2520