Retirement Options for Teachers
Posted by : Premraj | Posted on : Thursday, December 11, 2014
If there’s one thing teachers hate to talk it’s their retirement plans. The majority of teachers who start to plan for their retirement tend to stick to the 403(b) retirement programme for education employees, which have similar tax deferral rules to the 401(K) but unfortunately charges much higher fees. It’s a system that’s normally provided by a sales rep listed by the school and one that the majority of teachers sign up to without checking the often astronomic fee’s first.
So instead of being confined to an expensive plan like the 403(b) here’s some cheaper investment options for you to try out.
For starters you should consider putting your cash into a special savings account, the type and bank you sink your money into is completely up to you. Ideally you’ll want to go for one that has the highest interest rate as each year you’ll get gradually more cash back for your initial investment into it.
Another option worth considering is creating a special bank account that you put a fraction of your wage packet into each month. Say quarter of it, that way after each year you’ll have a little nest-egg that’s gradually larger that you can fall back on when you leave.
If you’re feeling brave with your money you could try investing in the stock market. Although it may initially seem a bit reckless the stock market can actually be quite a sound investment choice as some stocks tend to do well than others.
For example gold is always stable and it regularly increases in worth each year. If you want to invest in gold you can either buy stocks of it or create a Gold IRA that will allow you to convert your money into its net-worth in gold, you can also use gold bullion, gold coins and jewellery with this method.
Then all you have to do is sell your gold further down the line when it’s increased in worth and enjoy your profits. If you want a more in-depth look at gold you can always check out www.goldiranavigator.com for a step-by-step walkthrough of what to expect from your gold investments.
However, if you’re planning on investing in the stock market then you may want to create a portfolio of stocks, spread your money across as many things and items as possible, don’t sink it all into one area because you’re guaranteed to lose money that way. When you’re approaching stocks try to take a Scattergun approach to hit as many options as possible.
If you’re still struggling in the planning stages you could always try downloading a special investment app, these can range from relatively cheap to absolutely free and they’re fantastic for first time retirement planners.
How these amazing little apps work is they’ll ask you a series of questions like what your lifestyle is, your age, current income level and when you want to retire and then they’ll calculate that all together and work out what the best retirement option for you would be.
Some of these apps will normally provide you with links to investment options or it will tell you how much of your money you should be continually putting away each year and where it should all go.
So when it comes to covering yourself for your future your schools retirement package will only get you so far, so why not give yourself as much financial help as you can by using one of the options we covered to make sure that you have enough money to last in your twilight years.