Individual financial advice = your road map to a potentially secure financial future. To survive, you need this!
What does this involve?
No two retirement plans are alike. Specific calculations are completed for each individual/couple. We compare your projected ATRS and TRS and retirement investments with your projected retirement needs and then, based on these comparisons, provide recommendations that will allow you to strengthen your
economic health. EFS would be pleased to provide this personal financial advice at anytime, and always, it is complimentary.
Feel free to give us a call or email us. We want to help advise you. Our Houston Main Office number for Jay Allen Finn, CPA is (800) 950-1829. If you live in other areas, we will direct you to the right individual representative when you contact us.
The following applies mostly to Texas TRS but ATRS has similarities. "Highlights and Strong Points of: DROP, PLSO (Partial Lump Sum)."
Why Should I Take PLSO?
1. In my experience, many retirees will find that a small amount of their Partial Lump Sum (PLSO) is non-taxable when retiring and their monthly pensions are also approximately 4% (case by case) non-taxable.
2. TRS often times comes out better by you not taking the PLSO. TRS would rather keep the money, pay you monthly, and then at the end of your life, keep this lump sum. Inversely, it is best for you to consider the 36 month PLSO in most cases.
3. This benefit was bestowed by the legislature and should be seriously considered by every retiring educator. Additionally, if you are taking this benefit, it makes little sense to take the 12 or
24 month rather than the 36 month maximum.
4. Most importantly, this is your money and it may outlive you and your beneficiaries. With wise investing, you can withdraw about what TRS pays, at "your option" and have this windfall in larger payments for you in the sunset years of your life. Even a conservative investment model will show you that you might not cut your principal much, if any, over the first thirty-five years of your retirement.
*"Employment after Retirement" is probably more common for people who wait one year or who waited one month and then got rehired by January, 2005. One new interesting way to rehire, get all 12 TRS checks and secure a contract commitment is for you to be willing to be an independent contractor. There are some tax ramifications inherent in this scenario and you should seek the advice of your tax advisor or Jay Allen Finn,
Educator's Financial Seminars Teacher's Retirement System
Jay Allen Finn, CPA
11500 Northwest Freeway
Houston, TX 77092
TX Insurance Lic #844685