Current Teacher's Retirement Board (TRB) Retirement Chart

2023 CEA Advisor Special Retirement Issue

Personal Finance Information for Teachers

Teachers are a in unique profession; we currently have a pension, and have some other accounts available (403(b)) and HSA account (as  of 2024) that can help set us up for financial success. 

Below are some general financial steps that may help you to make a personal plan for your financial goals and objectives. 

While we do have a pension, you may want to contribute more to other retirement vehicles such as an IRA or 403(b).  Look at the chart at the top of the page to estimate what you think your pension will be; it's dependant on your top 3 years of earnings, as well as teaching time, and age.

General Financial Steps for Teachers: 

1. Fund a basic emergency fund of $2,467 or the highest of your deductibles! (This helps keep you out of financial ruin)

   1. Bank Accts: put the emergency fund High Interest easy to access account-Virtual ones generally offer the highest amount! (Ally, Capital One, Marcus, etc) 

   2. Budget; having budget allows you to make sure you can save for an emergency fund, and the other steps below depending on your goals.

2. Snag your company match in your 401(k) if you have one (some of us have second jobs.....). (Free money!) 

3. Pay off high-interest rate debt

   1. Credit Cards, high rate loans~Over 6% APR

4. Fully fund an emergency fund with 3-6 months of living expenses.  

   1. Living Expenses=Rent/Mortgage, Utilities, Food, Healthcare/deductibles.

5. Max out and invest in tax-sheltered retirement accounts

   1. Roth 401ks, Roth IRAs, HSA, etc.

   2. Can do spousal IRA’s if you file jointly!

   3. Only save/invest in a 403(b) if you've already maxed out your IRA and HSA (if you use our insurance); the 403(b) may have more fees compared the the IRA and HSA.   

6. Pursue other big saving and investing goals!

   1. Low-cost index funds; Robinhood/M1Finance/Schwab/Vanguard=Invest for long term-goals.

   2. Fractional shares; Set up auto deposits/auto-buy. 

7. Pay off lower-interest rate debt

   1. Snowball Vs. Avalanche

   2. (Steps 4-7 can be done concurrently.)