Welcome

WELCOME TO Educators Financial Seminars

INDIVIDUAL FINANCIAL ADVICE

At EFS, we believe that the only way to reach your retirement destination is to have a road map.

When you talk to your Teacher’s Retirement System or the Social Security System, THEY ARE NOT ALLOWED TO DISPENSE FINANCIAL and/or TAX ADVICE. They specifically notate this and may simply read you the options and explain what they mean. THIS IS NOT FINANCIAL PLANNING.

AT EFS, WE PICK UP THE SLACK

Individual financial advice = your road map to a secure financial future. To survive, you need this!

What does this involve?

No two financial plans are alike. Specific calculations are completed for each individual/couple. We compare your projected ATRS, TRS or TSRL and retirement investments with your projected retirement needs and then, based on these comparisons, provide recommendations that will allow you to strengthen your economic health. We would be pleased to provide this personal financial advice at anytime, and the first appointment, as always, at no cost.

Feel free to give us a call or email us. We want to help advise you. Our Houston Main Office number for Jay Allen Finn, CPA is (800) 950-1829 and Tim Webster’s Northeast Texas office is (800) 285-8803. If you live in other areas; we will direct you to the right individual representative when you contact us.

The following applies mostly to the Texas TRS but TRSL & ATRS have similarities.

“Highlights and Strong Points of: DROP, PLSO (Partial Lump Sum).”

Why Should I Take PLSO?

1. Most retirees will find that a small amount of their Partial Lump Sum (PLSO) is non-taxable when retiring and their monthly pensions are also approximately 4% (case by case) non-taxable.

2. TRS often times comes out better by you not taking the PLSO. TRS would rather keep the money, pay you monthly, and then at the end of your life, keep this lump sum.

Inversely, it is best for you to consider the 36 month PLSO in most cases.

3. This benefit was bestowed by the legislature and should be seriously considered by every retiring educator. Additionally, if you are taking this great benefit, it makes little sense to take the 12 or 24 month rather than the 36 month maximum.

4. Most importantly, this is your money and it can outlive you and your beneficiaries. With wise investing, you can withdraw about what TRS pays, at “your option” and have this windfall in larger payments for you in the sunset years of your life. Even a conservative investment model will show you that you will not cut your principal much, if any, over the first thirty-five years of your retirement.

“Employment after Retirement” is probably more common for people who wait one year or who waited one month and then got rehired by January, 2005. One new interesting way to rehire, get all 12 TRS checks and secure a contract commitment is for you to be willing to be an independent contractor. There are some tax ramifications inherent in this scenario and you should seek the advice of your tax advisor or Jay Allen Finn, CPA.

Exploring retire/rehire in today’s environment is another reason to get that financial plan today.

SOCIAL SECURITY:

As most of you know the "One Day Loophole" is now history. Under HR 743 (Congressional bill) it was replaced with a “Five Year Loophole” or really a requirement that the last five years of employment prior to retirement must be under both systems.

The Government Pension Offset (GPO) only affects spousal benefits for school employees who do not pay into Social Security and retire under the TRS system. For further information, see our Social Security page.

A worthy note for those of you who will never retire from TRS and will just take your money out. You can still qualify for your spousal or your own Social Security benefits as you did not retire under both systems. Please be sure and call us about the tax deferred rollover option when you leave TRS.

There is also transition legislation for some educators who have "dual district" time from the past (see www.ssa.gov or call 800.772.1213 and ask for a GPO specialist). It is best to get that explained by them directly.

Continue to watch our website for Social Security interpretations and updates on legislation to overturn “The Windfall Elimination Act,” which affects your own Social Security.

Whether you need a local seminar and/or group meeting or "individual retiree advice," please feel free to contact us at anytime for personal financial advice and deriving the most benefit from your 403(b), PLSO (Partial Lump Sum) or other financial planning. Note: control of your investment choices is even more important today. As many of you know, we have helped educators successfully for over 20 years.

Our Houston Main Office number for Jay Allen Finn, CPA is (800) 950-1829 and Tim Webster’s Northeast Texas office is (800) 285-8803. If you live in other areas, we will direct you to the appropriate individual representative when you contact us.