Texas Teacher Retirement/other options?

[badatmath]

Yes. I’d consider that. Depends I guess on the difficulty to get certified there and that process plus maybe how far away from my family home it may be ?

Why does the distance matter? Do you visit a lot? Are you renting it out and have to maintain it? Is it going to keep generating income for you in retirement or is it just sentimental?

 

[Montecfo]

Before I pose this question- I'm not looking for criticism. None of that actually helps anyone. I am looking for "If this was your situation what would you do?" answers. I don't want any "Well, if you had...." whatever the rest of that statement would be is essentially not helpful, because if I had done whatever you're about to suggest--maybe I would not be asking anything. That said.... what I am looking for here is pure impartial advice to a question and it's a bit complicated in terms of the choices in front of me from people who know education and maybe will understand all of these deep questions more than the average person will ?

To some-- the answer will seem easy. To others.... you may understand my conflict and as a result will instantly understand why I am asking. There are some related factors that I won't go into here--just because of some of the privacy related to it--but, yes those factors are the underlying issue that creates this whole scenario-

That said.... here is my question:

As a teacher in Texas, we pay into Texas Teacher Retirement. The system is NOT a good one. For me, normal age retirement is 65. I am 52. So, I certainly have more time to pay in. I also pay a little into a Roth IRA. Not a lot, but I do what I can after rent, and all the things.

That said, I don't love Texas. Less and less these days. The political climate and how it's affecting me personally is a lot. Maybe others can just ignore it. And I can too to a degree, but it is also getting dragged into teaching and schools and that bothers me.

As it stands now, my Texas Teacher retirement will give me about $2200 a month when I retire. Yes, I'll also have some income from the Roth IRA too. Even tho with other jobs I have paid into Social Security too, teachers can't really draw from it. If we do, it will be reduced due to the WEP. My TX teacher retirement was affected by me having to withdraw some funds in 2010 due to a massive personal issue. I can't really talk about it--but, yea it will definitely drag on my teacher retirement to which I can't do much about at this pont.

I have a home in Louisiana. It is my late parents home. No mortgage, no rent..etc. But, if I do that when I retire at 65, my Texas retirement will be reduced by about $900 since I will have stopped paying into the system. I will be paying into Louisiana--but, it takes 5 years to vest into the Louisiana Teacher Retirement. So, by the time I am vested it, it seems I won't have earned much in the way of retirement. I'm not sure if it would be enough to offset what I'd be getting reduced by in Texas by having left.

Also, in Louisiana, I am going to face the same exact type of political climates infiltrating into our schools. Also, currently the legislature there is reducing teacher pay stipends that have been used to increase teacher pay there. So, I'd definitely be getting a major pay reduction from what I currently make.

Those are all negatives. To throw another idea in- what if I move to Colorado ? I am certified there. The political climate in the way it affects me as a person is very different there. My target district pays much more than here. I'd have same normal age retirement at 65, but with PERA I would not have to vest in. I'd qualify for PERA from day one of work. If I pay in the whole time, I'd definitely make up the difference I'd lose with Texas plus, they have an additional state plan that I could qualify to pay into.

The negative- rent is super high there. The cost of living would hurt. There is the option to get a roommate OR rent a basement out from someone. Not an idea thought, but an option.

That said-- and yes I know I haven't gone into super detail- but given what I have shared ?

Would you just stay in Texas ?

Would you move to Louisiana?

OR would you scratch it all and head to Colorado and maybe have 2 systems to draw from plus a state sponsored system as well ? Knowing that you'd have to rent a basement

Signed-

Teacher in Texas.......

Can you get credit in Louisiana for your tenure in Texas? Back in the day Texas would give you credit for service elsewhere. Virginia also. Perhaps Louisiana does this or Colorado.

My general answer is stay in Tx unless you can find a key to reduce costs or increase income sharply.