The Official Teacher Finance Thread

Discussion in 'Teacher Time Out' started by whizkid, Jul 10, 2019.

  1. whizkid

    whizkid Cohort

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    Jul 10, 2019

    Ikr, that's why people who pay off an installment loan scratch their head when their score drops. It's ridiculous, but the scoring model likes to see that mix of installment and revolving. Crazy thing is....it only accounts for 10 percent of your FICO score.

    [​IMG]
     
  2. whizkid

    whizkid Cohort

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    Getting punished for paying off a debt, ain't it great?
     
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  3. ChildWhisperer

    ChildWhisperer Devotee

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    I just finished my 9th year of teaching, but only 1 year in public school (TRS).
    We don't own a house so we just have rent payments. We don't plan on staying in this town, which is why we're still renting.
    I honestly don't know anything about pensions, I should look into it..
     
  4. whizkid

    whizkid Cohort

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    It's guaranteed income for life once you are vested/retired. Unlike a 401(k) or similar retirement plan, your defined benefit is not at the mercy of the stock market. A pension is why I want to at least get vested to qualify before pursuing other employment avenues.
     
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  5. TrademarkTer

    TrademarkTer Groupie

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    Has anyone here used Fundrise? It looks pretty simple to use, and advertises good returns for investing in real estates.
     
  6. futuremathsprof

    futuremathsprof Aficionado

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    Jul 10, 2019

    This is not good. That means that you are nowhere close to being vested as you have to work X number of years before retiring from the district. For example, in CA if you have taught at least 30 years and are age 50, then you can retire. Also, if you have worked at least 5 years and are age 55 or older then you can retire.

    1 year is no where close to meeting the minimum requirement.

    How many more years are you planning on teaching and, if you don’t mind me asking, how old are you?
     
    Last edited: Jul 11, 2019
  7. futuremathsprof

    futuremathsprof Aficionado

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    I’ve not, no. Sorry I can’t be more helpful.
     
  8. futuremathsprof

    futuremathsprof Aficionado

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    This is good to know! Thank you.
     
  9. geoteacher

    geoteacher Habitué

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    Jul 11, 2019

    My credit score is somewhere in the high 700s/low 800s, and this formulary does a good job of explaining why. DH and I have always a been of the “pay it off” mindset. We paid off the house in seven years, and we only get a car loan if it lowers the overall price.

    Seriously though, do you have a target amount of money where you feel that you’ll have enough to retire?
     
  10. futuremathsprof

    futuremathsprof Aficionado

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    My target amount is at least $3 million.
     
  11. whizkid

    whizkid Cohort

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    If I can draw between $3,500-$4,000 monthly in retirement I think that'll be enough for bills and some vacations. Hopefully two pensions plus social security will get me there. My ROTH money will be for any emergency medical issues or something like that, I hope not to even have to touch it. If I can accumulate around $500,000 or so in it, I can make it stretch. I'm not the type to go out and get a new car or Rolex just for retirement. To get steady income without getting up and working is my reward.
     
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  12. futuremathsprof

    futuremathsprof Aficionado

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    I want to live lavishly until I kick the bucket and so $3,500-$4,000/month just wouldn’t be enough for me. I envy you, actually, because it is much easier to save $1 million than $3 million.
     
  13. whizkid

    whizkid Cohort

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    Well, some vacations, sports and good food is all I'll want. I won't want anything else. Peace and quiet and not be bothered, that's all I'm really going to want. I wanted all the fancy cars, clothes and three story homes when I was younger, but that just brings unwanted attention. I want my retirement to be just like my summer, peaceful and unbothered. I won't need millions for that.
     
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  14. ChildWhisperer

    ChildWhisperer Devotee

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    I'm 31 and only plan on teaching until I have kids, which will hopefully be soon. Then I'll go back to work when the youngest starts school.
    This would be the ideal plan, but I know life doesn't always work out the way we plan so we'll see.
     
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  15. futuremathsprof

    futuremathsprof Aficionado

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    Oh, thank goodness. You are still very young. I thought you were nearing retirement age with only the aforementioned number of years of public school teaching under your belt, haha! Phew!

    You have plenty of time. :D
     
  16. whizkid

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  17. whizkid

    whizkid Cohort

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  18. Ima Teacher

    Ima Teacher Maven

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    Teachers in my state do not qualify for Social Security benefits. We pay into the Kentucky Teacher Retirement System. Government borrow against our system, then didn’t pay it back. Now our governor is trying to “reform” it saying it’s a mess, when it was actually doing well until borrowed against. It has caused a huge issue. I’m close enough to retirement that it wouldn’t matter to me and DH, but some of his proposed changes would make a huge difference to newer teachers. Two of my coworkers gave up teaching at 7 and 12 years because of the changes.
    I also contribute to mutual funds just to have extra funds for retirement.

    Some of my coworkers qualify for both KTRS and SS, but they get adjusted amounts because you can’t be paid both. It’s called the Windfall Elimination Provision.
     
  19. Ima Teacher

    Ima Teacher Maven

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    My DH and I clear about $2800 a month each, and we live quite comfortably. There’s definitely a plus to being in an area with a lower cost of living.
     
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  20. futuremathsprof

    futuremathsprof Aficionado

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    On average, what are your monthly expenses, if you don’t mind me asking?

    I’m just curious about the COL comment you made.
     

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