Employees in corporate professional careers often switch jobs during their careers. But what should you do with the old 401(k) or 403(b) retirement plan?
As of 2018, women earned 85% of what men make, according to a Pew Research Center analysis.1 This is paired with the fact that women tend to live longer than men and often have to draw down their retirement wealth over a longer period of time. In 2020, the average life expectancy at age 65 is 21.1 years for women and 18.6 years for men.2
401(k)s for retirement savers are extremely important especially for those in corporate careers as they are one of the best vehicles to fund your retirement. Americans have $6.3 trillion invested in these tax-deferred workplace savings accounts. There are more than 58 million active 401(k) participants.1
It depends. There are two important laws that Texas teachers should know about that can impact whether you will receive Social Security.1
The Windfall Elimination Provision or WEP and the Government Pension Offset or GPO. Both of these laws can reduce or entirely eliminate a Social Security benefit. This will depend upon whether you as a teacher qualify for the Teachers Retirement System or TRS and did not pay into Social Security.
How to Avoid Retirement Woes
According to the American Institute of CPAs (AICPA), the top concern of retirees is running out of money. For those especially working in corporate careers, there are many great options to effectively save for retirement.
High-3 and New BRS
Did you know that the Department of Defense estimated that 83 percent of military personnel exit their service before 20 years? In fact, before 2018 people who joined the military and did not stay long enough to retire, basically got nothing towards their future retirement.1