Investing Tips and Strategies for teachers! 403b’s, 457b’s, Roth IRA’s OH MY! Hey what’s up everybody! My name is Shawn and I’m a middle school music teacher. I love teaching and I love learning about money!
In todays video, I’m going to go over 2 extremely popular investment accounts for teachers – the 403b and the 457b. I’m also going to go over the alternate but very popular Roth IRA. In this video we’ll discuss these retirement accounts and go over which account is possibly best for you.
It’s no secret that teacher’s don’t make a lot of money. This has caused many teacher’s who are starting out to question if they could actually teach for the long haul.
Teacher’s are also lifelong learners. We love learning because many of us were great students! As lifelong learners, we should also focus heavily on financial education Learning about personal finance and investing has helped me feel much more at peace with my financial future and it’s helping me enjoy work even more.
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I have a 403 b and Roth, I guess I should invest more in Roth?
My order of investment:
1. Roth IRA up to max in VTI (total market index). This money should be used last in retirement since it grows the most tax efficient. Also useful for any huge expenses in retirement since you don't pay taxes on it. I recommend to put in $25 per pay period per year of experience(step). Dollar cost average. Don't try to time the market.
2. 457b (This money can be accessed if you leave the school system before age 59.5. Select index or retirement date fund. I recommend a retirement date 5 to 10 years after your actual retirement date. Most of us can be more aggressive since most of us have a guaranteed pension)
3. 403b (Same as above.) You can't use this money until age 59.5. So, not as useful if you have to move or leave teaching and need the cash.
Avoid any teacher retirement funds that have high fees (.5 to 2%) often because they can be converted to annuities. A lot of teacher 403bs and 457bs have funds with high fees and/or low performance. So try to select funds that are closest to passive index funds. These annuities act like guaranteed pensions, but you pay high fees that basically cut your growth in half due to less compounding interest.
You guys try commas etc? I tried those and java coding so now creating strategies on pluto hq as it is much more easier to start and quicker to try different theories.
Would you invest the lump sum on a Roth IRA in the current state we’re in or start dollar cost averaging for next year?
Nice video, I am new to online investments, I have been practicing using a demo account. I
like to prepare for my future, I tried starting up a Roth IRA account. I don't know much
about it or which is better. I am scared that I don't know enough to start all by
myself. I am willing to try, but I need help on exactly what to do next.
So my district discovered that my investment company was contributing to my roth and not a 403b. So the company wants to move the money (3000) into a 403b and they offered to pay me the gains as well (500) if I sign a release that will indemnify them. They clam that both of these money moves will be non taxable events. Is that true?
Once we start to get our pension, do we pay taxes on it too?
I need to meet you to learn your ways! Great video!