Learn how you can gain financial security with retirement planning
Key Takeaways:
- No matter how much you have or when you start, good retirement planning makes financial freedom possible.
- Educators have access to personalized financial guidance.
- Educators with a 403(b) retirement plan who work with a financial professional can earn as much as 23% more vs. those who don’t.
From curriculums to class schedules, teachers have to balance it all to have a successful school year. But how do you balance your finances, especially if you’re just starting out?
Balancing your monthly budget can be even more challenging: the rent, the groceries, the bills, student loans. You may even be dipping into your own pocket for extra school supplies and other needs for your classroom.
When it feels like every dollar is accounted for well before the month even starts, saving for the future may seem challenging.
Retirement planning: It's never too early (or too late) to get started
Whether you’re just starting out or a seasoned veteran, financial freedom starts with a plan. Without a plan, you could be one of 59% of Americans who say they accept they have to keep working longer, or 36% who believe they may never have enough money to be able to retire.
Take the next step now
Enroll in an Equitable Financial 403(b) retirement plan today — and find an Equitable Advisors
Financial Professional who can help build your financial future with confidence.
Build on your pension benefits
As an educator, you have access to an Equitable 403(b) retirement plan. Similar to a 401(k), a 403(b) retirement plan was designed to help educators who have pensions to supplement that future income. This plan has the flexibility to adjust as your needs change and can help you turn your salary into the future you want.
The nice part: The money you contribute, however small, is tax deferred. That gives you two advantages:
- Short term – You can have more money at the end of the year because you can have less taxable income.
- Long term – Your money grows faster than if it was in a taxable account, which gives you more income in retirement.
That’s right: you can save money on your taxes. In the example below, let’s say your pretax income is $50,000:
| If you contribute this much to your 403(b) pretax: | $2,500 | $5,000 | $7,500 |
| Your taxable income will be: | $47,500 | $45,000 | $42,500 |
| And you will pay the following in taxes: | $5,700 | $5,400 | $5,100 |
By saving $7,500 a year, you can save an extra $600 in taxes.1
Any amount matters
$2,500 may sound like a large number, but that’s for an entire year. It’s less than $7 a day. Little changes, such as making your coffee at home or canceling a streaming service you aren’t watching, can help you get the ball rolling.
Whenever you can eliminate an expense, pay off a credit card or get a pay increase, move part of what you were paying to your retirement savings before it works its way into your everyday spending. That way, you get a little more in your budget and your 403(b) retirement plan.
Find a financial professional who can help
It doesn’t matter how much you make or how much you save, having a trusted financial professional in your corner can make a big difference. Working with a financial professional to get to a plan that makes the most out of your money can be a key component to unlocking your financial freedom. In fact, the median 403(b) retirement plan account balance is 23% higher for those who use a financial professional vs. those that don’t.
Find an Equitable Advisors financial professional to help
Register and enroll online to get started toward putting a 403(b) plan in place and learn more about Equitable Advisors financial professionals. They can help educators like you plan and prepare your financial life for both now and in the future.
1 Based on a hypothetical federal tax rate of 12%. Figures do not take into account any other sources of income, state or local income taxes, tax credits or deductions.
Disclosures:
This informational and educational article does not offer or constitute and should not be relied upon as investment or financial advice, and the advice of your own such professionals will prevail over any information provided in this article. Equitable Advisors, LLC and its associates and affiliates do not provide tax, accounting or legal advice or services.
Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY), Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company, and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI and TN).