My Rights As An American

Location?

Good chat last night, it was fun catching up for a bit! Tough decision but the nice thing is that with either decision you make, you end up with either a pension and other benefits if elected, or a chunk of money. Pros and cons to both options, but they both end up providing for you in the long run. That is the hard part to convey to new employees often, that yes, your paycheck is smaller today but 15-30 years from now, you will be extra glad that money was taken out for you.

VERY smart to have invested in your 401k for so long. Someone taught you well early on! Thank them. I have been lucky enough to share my limited knowledge with many people who have thanked me for convincing them to invest in themselves financially. We now run a program in my current school district that I created to educate our employees in how to invest in themselves!

You and I are under the old plan which changed for new hires after around July 2011. This is a different ASRS plan now, and since he is teaching college, he can actually opt out of ASRS within the first 30 days and do the new plan to invest himself in a self directed defined contribution plan. Anyone under the old ASRS plan who retired has a great plan, one of the best benefit plans in the entire country for sure! And one of the better funded for long term security.

I am NOT A FINANCIAL ADVISOR, just my personal input only. Do not take anything i say as investing advice, please. May be easier talking offline as there is a ton to unfold. Basically, you must select within the first 30 days of employment if eligible for the ORP. Otherwise, you defer to ASRS. It acts like a regular investment account similar to a public 403b or 401k that is contributed pre-tax. Your 7% contribution is matched by your employer, and vested after a certain number of years, 10 I believe I saw. Meaning, after XX years, your employer's contributions become fully yours. Before then, none of only a portion is actually yours to keep. It is a defined contribution plan, so the value of the account is what it is worth when you withdraw monies. So you start with 7%, it is matched 100% and then you invest in one of the two plan carriers, TIAA or Fidelity. Most likely through mutual funds. Personally, unless the salary is pretty high, 7% may not be a lot. But you can always supplement with another plan on your own if they offer a 403b or 457 plan. Have to check max contribution rates for your filling status. ASRS is a defined benefit plan, meaning you know what you will get at the end regardless of how much your input was all along. You contribute 11.98% this year, employer matches. Vesting in ASRS means nothing if you plan on retiring from the system and taking a pension benefit. It is one or the other. The value of what you contributed is ultimately useless. Your defined benefit is based on years of service, average salary and a define multiplier. Your answer depends on what you have already done to invest for yourself for retirement, the kind of accounts those are in, how much time you have before drawing off the account, risk tolerance for investing, willingness to take less now into your account for potential for bigger returns in 10-15 years, and about a dozen other questions. Personally, I advocate for having more than your pension. The so called three legged stool of investing in yourself: pension, own investments and social security. Hope this helps. Call anytime.

I have 28 years with ASRS, so feel free to send me any questions. I work in school finance and know a bit about the system, but a lot of your questions will be about how long you plan to work in the system and what you hope to get out of it, and when.

I would pick this up if I were in Tucson. Free bump.

Uh, ok.

Uh, where was I located in 2012 when I posted this and sold it, or in 2026 when I am responding to a 14 year old post?

Proof of life videos, that is awesome!!!!

Free bump. Good dude.

Ah, beat to the punch on the buddy heater!

Where are you located?

How old are they?

Seconds. Even if not in perfect condition, heck of a pretty gun!