Retiring Super Early

Discussion in 'General Education' started by AdamnJakesMommy, Sep 17, 2014.

  1. AdamnJakesMommy

    AdamnJakesMommy Habitué

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    Sep 17, 2014

    This is my 2nd year of teaching, but I'm already thinking about retiring (I'm 29) I don't *really* have to work and never did, but I took out student loans to get my Masters to become a teacher because I was passionate about education and history and thought it would be great. I'm still passionate about both, but am very disillusioned at the same time. I honestly just don't want to do it anymore.

    Well, I know there is the program now that after 10 years of public service and paying student loans on the IBR plan, the balance is forgiven. This is what I plan on doing--sticking it out for 10 years and leaving. So once my ten years are up, I am free of any and all debt, and of course any and all reasons to work. I would probably get bored, and want to do something like work as a part-time bank teller (I worked in banking before becoming a teacher and miss it terribly anyways).

    Does anyone know of any retirement plans outside of education I can get myself into since I know that I don't plan on retiring from the public education system? I want to go ahead and start sloughing off money towards something like that now.
     
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  3. Caesar753

    Caesar753 Multitudinous

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    Sep 17, 2014

    I recommend finding a financial adviser. They can help you navigate the world of personal retirement.
     
  4. Upsadaisy

    Upsadaisy Moderator

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    Sep 17, 2014

    If you don't have one, set up an IRA account with your bank and start depositing funds monthly. You can't pull them out without penalty before age 60 something, though.
     
  5. DrivingPigeon

    DrivingPigeon Phenom

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    Sep 17, 2014

    I don't have any advice, but I just have to whine, because I can't do the loan forgiveness anymore. :( After getting married, I have to report my husband's income, too, and now I make just too much to qualify. Bummer!

    Alright, whining over!
     
  6. Jerseygirlteach

    Jerseygirlteach Groupie

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    Sep 17, 2014

    Are you sure you want to stick it out for 8 more years (plus this one that just started) if you honestly don't want to do it anymore now?
     
  7. teacherintexas

    teacherintexas Maven

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    Sep 17, 2014

    You could still put money in a 403b.

    I second or third (can't remember who all said this) going to a financial advisor for help.
     
  8. AdamnJakesMommy

    AdamnJakesMommy Habitué

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    Yes, my student loan debt is 100K. IBR with mine and my husband's income and our 3 kids puts my payments at about 300/month for ten years with the rest forgiven. I want to be debt free. My home is paid for, my credit cards are almost paid off, and I want my student loan debt to be gone in 10 years. You must have a public service job: teaching, police, etc to qualify for the loan forgiveness. If for some reason the loan forgiveness disappeared, I'd still want my loan paid off in 10 years (which means I would need to pay 1100/month) so that I can be debt free and in a job which I don't live in 24/7, and can just work (if I want to), clock out, and go home and not think about it again. The bottom line is, when I'm 39 I want a stress-free job (or no job) and that's that, and I want to be debt free as well.

    I don't hate teaching or want to run from it screaming or anything, it's just not what I cracked it up to be. I don't want to spend 30 years in it, but I can handle 10. And I may change my mind and decide I want out sooner, or I may decide I don't want out at all. In the meantime, I can still deliver optimal instruction to my students so there is no need for me to be dismissed or voluntarily leave at this point in time or in the near future.

    Teaching is the highest paying job I could have right now. It allows me to invest and save money, and it will allow me to put money aside so that I never have to take a loan out again (for vehicles, etc.). If the loan forgiveness disappeared it's the only job that would permit me to be able to drop 1100 a month on loans if needed.I've already contacted a financial advisor to day to expand my existing Roth IRA to add 3 more mutual funds to accelerate my retirement savings.

    I think, in short, what I am feeling is this. I really don't want to work, period. That's the problem. I've got myself trapped because of the student loan debt, and need to eradicate that. If I didn't have that debt, I could sit by my pool sipping lemonade instead of getting up at 6:30 and going to work all day. The only job I've ever had that didn't *feel* like work, was in banking for some reason--it fascinated me and I enjoyed it.

    Once the loans are gone, compulsion and pressure to work are gone. Then I can decide what's best for me: not working, staying in teaching, or working in a different industry, depending on the circumstances at the time. I'm the kind of person who becomes miserable when things aren't exactly the way I want it, I don't want to be miserable. If, at 39, if the only way to combat misery is to sit by my pool drinking lemonade, then I want to be able to make that choice in 10 years to do just that. If the thought of staying in teaching doesn't make me miserable, then I'll stay. If I continue teaching subjects I don't want to teach with little to no resources to properly differentiate my instruction, working with a team who doesn't differentiate (for some reason ??), unaligned textbooks, no digital programs for the subjects when there are no textbooks, little technology in the classroom, school, etc. I know all of that sounds pathetic to whine about, but in all the training I've gotten in grad school I had such grand ideas to implement in my classroom but due to limitations, I can implement hardly any of them and the ones I can implement, I have bought with my own money. It's disillusioning to me, maybe not others, but it is to me.

    The question for me is: what can I do right now to ensure I don't have to work in 10 years, if I don't want to? That's what I'm doing right now. My husband makes enough for us to live on comfortably, I'm just working to fix my financial decision making mistakes. No matter what, I need to fix them and get my retirement in full gear anyways.
     
  9. GTB4GT

    GTB4GT Cohort

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    Sep 17, 2014

    Just another perspective...I retired a few years back at 50. after working hard most of my life I thought that nothing would be greater than being free to do nothing. Well, after 2 years of it I had completed most of the projects around the house plus a few "bucket list" items. And grew restless. So I looked around for something to do that was meaningful. And still allowed for all the "time off" that I needed. that is how I began teaching. And I feel very lucky to be in this profession because it absolutely provides the best possible balance of meaningful work plus plenty of "play time".


    I guess what I am saying is...being off all the time isn't all that one might imagine (or at least it wasn't for me.) of course, YMMV.
     
  10. AdamnJakesMommy

    AdamnJakesMommy Habitué

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    Interesting point. I don't know if what I really need is to take a few years off or leave working altogether, but I certainly don't want to have debt to worry about even if I decide to just take some time off for myself.

    I'm going to graduate from grad school in August, does anyone know if you can skip the grace period and immediately consolidate and start making payments? I want my 10 years to start RIGHT AWAY.
     
  11. readingrules12

    readingrules12 Aficionado

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    Sep 17, 2014

    I would get a ROTH IRA with Vanguard or a similar financial investment group. When you withdraw your $$$ after age 59 1/2 all the $$$ is tax free. Also, you can choose the funds to put them into. Do you know someone at your school or a friend that might be able to help you with this?

    However, I would get rid of your debt first. See what your options are with this.
     
  12. readingrules12

    readingrules12 Aficionado

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    Sep 17, 2014

    Yes, they will take your money right away. Also, you can pay a larger amount each month if you want to pay it off early. It is totally up to you.
     
  13. Go Blue!

    Go Blue! Connoisseur

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    Sep 18, 2014

    I feel you, OP. If I could afford to or if I had a spouse; I would have retired from teaching 6 years ago (this is year 7 for me). I also have a lot of grad school debt and since I make good money for 190 days of work; I stay. Every morning I tell myself, "another day, another dollar."

    Good luck!
     
  14. txteach13

    txteach13 Rookie

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    Sep 18, 2014

    As far as the IBR, a job at a public university in any position qualifies for the forgiveness. I left teaching for an administrative position and within a year was making the same amount and have the possibility to move up.
    You can also use just your income if you file separately but of course there are cons to doing that.
    Good luck with your plan, I think it would be great to retire early or at least have that option. Financial freedom is the key.
     

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