Navigating pension contracts can often be complex. Because we work closely with many public-school administrators and teachers, we typically will know the details of the provisions and options of these retirement plans.
Case Study
Sixty-five-year-old John Loughlin, a high school teacher, and Kelly Loughlin, an assistant principal, are retiring at the end of the school year. Both have always contributed to their retirement plans—other than the 12 years Kelly took off to stay at home and raise their children. John and Kelly are looking to better understand their financial picture in retirement.
| Challenges | Solutions |
| What paperwork do we need to complete with the state and my school district? | We are familiar with the paperwork needed in your state and school district. We will work alongside you to collect all necessary paperwork and help make sure all forms are completed and submitted according to contract deadlines. |
| How do we ensure that the pension option we choose will protect us and our family? | We review your pension options and recommend the most appropriate choice for you, your spouse and family. We will discuss each option and answer any of your questions before finalizing your pension option. |
| When should we claim Social Security? | We perform a Social Security analysis and help you determine the best claiming strategy. |
| How does our school district’s retirement incentive work and how do we figure out what we will receive? | We will examine your district’s contract and review how it applies to your situation. We help determine your future income based on your years of service, unused sick time, etc. |
| What is the penalty if John retires early? | We request specific early retirement estimates from the state and analyze the amount of the reduced benefit. |
| What are the healthcare options for my family? | After we conduct a review, based on your age, company benefits, Medicare options, private insurance options and family situation, we evaluate healthcare alternatives and income requirements so we can help you make an informed decision. |
| How do I make sure Kelly is taken care of if I die? | We work with Kelly to apply for spousal benefits and help to ensure your investments and pensions are set to provide for her. We also coordinate with your attorney to make sure critical estate plans and beneficiary designations are up to date. |
| What are my options for unused sick leave? | By examining your school district contract, we can help you choose the best option for unused sick days including taking a cash payout, applying it to healthcare or rolling it into a tax-deferred investment account. |
| When can we retire and begin to draw down our benefits? | We take a complete inventory of your investments, pension options, Social Security and healthcare options and create specific recommendations based on your age and income requirements. |
This case study is hypothetical and for discussion purposes only. It is not intended to represent any specific return, yield, or investment. Individual experiences reference above may not reflect the future experience of any client. The planning process discussed may not be appropriate for your personal situation, even if it is similar to the example presented. Past performance is no guarantee of future results. Investing involves risk including the possible loss of principal.
