UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: BGauer Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: Wifes Retirement $ Date: 6/23/2000 9:19 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
VujnovGreg says, "My wife has recently left the teaching profession and is 37 years old. We want to take the 25K out of the Cal. State Teachers Retirement system due to its single digit returns."

My comment: I draw retirement from Texas teachers retirement. During the time I was contributing, they paid a nominal 5% on my contributions. However, my retirement benefits were NOT based on the amount of my contributions, but the number of years I had contributed. And there were "matching" contributions, also.

If your wife leaves her contributions in the system, what will she draw based on current projections? For example, if she has taught fifteen years, will she draw 30% (2% per year) of her three highest years' pay? To draw $1,000 a month, or $12,000 a year, she'd need $150,000 invested at 8%. To turn $25,000 into $150,000 (or better) in 27 years should be do-able.

Just wanted to point out that comparing the nominal return is not the whole story!

Sincerely, Betty G
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement