How to save $50,000 a year in retirement: Texas teachers pension
AUSTIN, Texas — If you’re a Texas teacher and are retired with a pension of at least $100,000, you could save up to $50 a year by investing your retirement funds into a pension plan that has an option to buy a high-quality mutual fund.
The Texas Teachers Retirement System (STS), which includes the state’s public schools, has an options plan that offers the option to purchase a high quality fund, with a return of 30% annually.
The STS website states that the fund’s investment returns are “at a 30% compounded annual return, as well as a higher than market rate return, compared to other high-rated retirement funds.”
The fund’s returns include an investment tax deferral, so your investment in the fund is tax-free and you’ll still have access to your money as a long-term investment, unlike with traditional investments.
If you choose to invest in the STS options plan, you’ll also receive tax-advantaged distributions when your retirement age is reached.
However, the STs investment program does offer some retirement benefits, including an early retirement plan and tax-protected cash distributions.
You can learn more about the STC’s retirement plans by visiting their website at texasteacherspension.com.
The article appears courtesy of The Washington Post.