What do you do if you're a retiring teacher facing financial pitfalls?

First of all, get a financial coach. They have the tools to make sure you get all the income and expenses and to figure your net worth and your debt load. There are templates that help, but without the coach, you might misinterpret the implications. They can tell you how long you'll be in debt and the total interest you'd have to pay. Find out how much is in your 403b! That will have to be moved when you retire into something in your own name. The fees are higher if you leave it with the school. Make sure you have your will in place and you've got adequate insurance (health especially). Also remember your life insurance IS NOT an investment. It is supposed to cover living expenses for your spouse and any debt that is not your house.

Assess Income and Expenses: Determine your current and projected income from sources like pension, social security, savings, investments, etc. Evaluate essential and discretionary expenses such as housing, utilities, food, health care, insurance, taxes, travel, hobbies, etc. Create a Realistic Budget: Develop a budget that reflects your income and expenses realistically. Ensure that it aligns with your financial goals and priorities. Consider any potential gaps or surpluses in your budget. Plan Ahead: Use the budget to plan for the future. Identify areas where adjustments may be needed to align your spending or saving habits with your financial goals.

Prioritize High-Interest Debt: Focus on paying off high-interest debt like credit cards, loans, or payday loans. Consider strategies like debt consolidation or balance transfer to lower interest rates and payments. Evaluate Low-Interest Debt: Assess low-interest debt like mortgages, student loans, or car loans. Decide if it's best to continue regular payments or explore refinancing options for better terms. Reduce Debt for Retirement Savings: Recognize that reducing debt frees up money for retirement savings. Make debt repayment a priority to enhance financial stability and flexibility during retirement.

Tuition for experienced & mature teachers is a growth market. After Covid & multiple lockdowns, many parents are seeking additional tutors for their children to help catch up on missed education. Dictate your own hours, schedule, exam groups, age ranges you are prepared to teach. Promoting through Facebook, word of mouth as a retired teacher, adverts in local corner shops etc are a good way to attract a client base of tutees.

We're teachers. We know how to boost our income. * Painting houses * Tutoring * Private teaching * Craft shows * Entrepreneurial adventures... * Public Speaking!

Assess Skills and Interests: Identify your skills, interests, and availability to determine potential income-generating opportunities. Part-Time or Freelance Work: Consider part-time or freelance work such as tutoring, consulting, coaching, writing, editing, or online teaching, depending on your expertise. Monetize Hobbies or Passions: Explore ways to turn your hobbies or passions into income sources, such as selling crafts, art, photography, or starting a blog, podcast, or YouTube channel. Passive Income Opportunities: Investigate passive income options such as renting out a room or property, or creating digital products or courses that can generate income over time.

This is another incidence when you need a financial coach. CDs, Money Market accounts, and high-yield savings accounts have a very low return on investment and may tie up your money so you cannot use it when you need it. Even the #1 banks in the US have only a 1% return on your investment. With inflation, it means you're LOSING 2%-4% every year. Even if you get a good rate on a CD, you'd only gain 1%-2% every year after inflation. You also may do well with a money market, but sometimes those have higher initial deposit requirements and are not as liquid as a savings account. These types of investments are better for Short Term savings rather than retirement savings.

I'm a little biased here, but I would suggest Primerica as a good source of information and their customer service is as good as the agent you speak to. 9/10 this will be a person you know and trust already or will be recommended by someone you know and trust. They will give you a 360 degree look at your finances and are well-trained in every aspect of financial advice.