Most school district employees assume that their pension alone will carry them through retirement. Here’s the hard truth: it won’t. Relying solely on your pension is like running a race with one leg. While your pension provides a strong foundation, it may not be enough to sustain the lifestyle you’ve worked so hard for. That’s where Brett Moore comes in—helping you maximize not just your pension but also your 403(b) plan to fill in the gaps and ensure a secure, stress-free retirement.

How Your Pension Works: CalSTRS and CalPERS

If you’re a school district employee in California, you’re likely part of either CalSTRS (for teachers) or CalPERS (for non-teaching staff). These systems calculate your pension based on key factors like years of service, salary, and your age at retirement. While these pensions offer guaranteed income, they usually cover only a portion of what you earned while working.

Here’s where Brett Moore steps in. Brett is an expert in the intricacies of these pension systems and ensures that you fully understand how your pension is calculated and what you can expect. Brett breaks down complex formulas and helps employees plan accordingly, so you know exactly what your retirement income will look like.

Why a 403(b) Plan is Critical for School District Employees

A 403(b) plan is more than just an additional savings account—it’s a tax-advantaged powerhouse that can significantly boost your retirement income. Think of it as your personal safety net to ensure you have enough for those later years.

Brett Moore stresses the importance of pairing your pension with a 403(b) to create a well-rounded retirement plan. A 403(b) plan works much like a 401(k) in the private sector. It’s a tax-sheltered annuity plan, which means your contributions grow tax-deferred until you withdraw them in retirement. The beauty of this is that you can actively contribute to your retirement, beyond what your pension will provide, to secure long-term financial stability.

But here’s the catch—picking the right 403(b) plan is critical. With so many options available, many school district employees are overwhelmed and end up choosing the wrong plan, or worse, not contributing at all. Brett’s personalized approach helps you navigate the sea of 403(b) providers, ensuring you pick a plan that offers the best combination of growth and security.

Maximizing Your 403(b) Contributions

If you’re serious about securing your financial future, maximizing your contributions to your 403(b) is a no-brainer. Contributions to a 403(b) are made pre-tax, which not only lowers your taxable income today but also allows your savings to grow tax-deferred until you retire. The more you contribute, the more you’ll have in the bank when you need it most.

Brett works closely with school district employees to create a contribution strategy that fits their lifestyle. He helps you determine how much you can comfortably contribute without impacting your current financial situation, ensuring that your retirement savings grow steadily over time. Brett also makes sure you’re aware of key advantages like the ability to contribute an extra $3,000 annually if you’ve worked in your current position for 15 years or more.

The Importance of Diversifying Your Retirement Income

Relying solely on your pension is a mistake. While pensions offer guaranteed income, they often leave significant gaps, especially as the cost of living rises. This is why diversifying your retirement income is critical. Brett Moore emphasizes the importance of combining your pension with other income sources, such as a 403(b) and potentially even a Roth IRA, to create a multi-faceted retirement portfolio.

A diversified retirement income stream ensures you’re not relying on one source of money to meet all your needs. This approach significantly reduces the risk of running out of funds later in life, as you’ll have multiple avenues of income supporting you. Brett provides strategies for balancing risk and return across your portfolio, helping you optimize your investments while minimizing exposure to unnecessary risks.

Understanding the Tax Implications of Your Pension and 403(b)

Here’s another reality check: taxes don’t disappear in retirement. If anything, they become more important to plan for. Understanding how your pension and 403(b) withdrawals will be taxed is critical to ensuring you don’t lose more of your retirement income than necessary.

Pensions are typically taxed as ordinary income, and 403(b) withdrawals can also face taxes, especially if they’re taken out before the age of 59½. Brett Moore provides strategies to help you minimize these tax burdens, ensuring you’re keeping as much of your hard-earned money as possible. By structuring your withdrawals smartly and understanding the tax implications, you can avoid common pitfalls and maximize your retirement income.

403(b) Retirement Plans for Teachers: What You Need to Know

At Appreciation Financial, the focus is on retirement planning for teachers and public employees. A 403(b) is one of the most effective retirement income sources available to school district employees. However, navigating the different options can be confusing. Brett Moore and his team at Appreciation Financial specialize in analyzing the specifics of 403(b) options to help you make informed decisions.

Here’s why a 403(b) is so powerful:

• Your earnings are tax-deferred until withdrawal, helping your savings grow faster.
• Teachers often benefit from shorter vesting schedules compared to 401(k) plans, meaning the money in your account is yours sooner.
• If you’ve served 15 years or more, you’re eligible to contribute an additional $3,000 annually to your 403(b), giving you an extra boost in savings.
• Some teachers are even eligible for matching contributions from their employers, which can significantly increase your retirement savings.

The bottom line: You can’t afford to overlook the benefits of a well-managed 403(b) plan.

Building a Secure Future with Brett Moore

Retirement planning for school district employees is about more than just understanding your pension—it’s about creating a comprehensive strategy that combines your pension, 403(b), and other retirement savings vehicles to ensure long-term financial security. Brett Moore’s expertise in CalSTRS, CalPERS, and 403(b) plans offers school district employees a clear path to retirement success.

Brett’s personalized strategies ensure that you maximize every available resource and don’t leave money on the table. If you want to retire with confidence, it’s time to take control of your financial future. Reach out to Brett Moore today and start building a retirement plan that works as hard for you as you do for your students.

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.

Published by: Nelly Chavez