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Money Minute: Are You a University Professional Thinking About Retirement?

Money Minute: Are You a University Professional Thinking About Retirement?

Are you a professor or university professional thinking about retirement? Your planning process can be unique.   

Here are four things you should think about:

  1. As a university professional, your wealth is often times held differently. While others may hold their wealth in businesses, buildings and land, you may have a significant percentage of your net worth in 401(a), 403(b) and 457 retirement plans. These accounts are taxable when used in retirement or when passed on to beneficiaries. How taxes will affect your income and estate plan needs to be planned for and implemented.
  2. You may have an insurance company as the custodian for your retirement plan. Having an insurance company isn’t inherently good or bad, but having an advisor who has experience working with insurance company custodians is very important. Make sure you and your advisor understand the strengths and weaknesses of your plan including the fees, interest rate floors and how to work with any withdrawal restrictions.
  3.   Some of you have decisions to make about pension or defined benefit plans.  Decisions you make here are often irreversible and irrevocable. Defined benefit plans often times have numerous payment options. Most of these options provide a monthly benefit until your death and may include a benefit for a beneficiary such as a spouse.  The option you choose will affect the amount of monthly benefit you receive.
  4. Finally make sure that any advice you get is from an independent fiduciary advisor who has significant experience in working with university professionals. Many people are not aware that there are advisors who are not required by their companies to serve as fiduciaries. SVA Plumb Financial is an independent fee-only fiduciary. We do not receive commissions. As a fiduciary, we act only in your best interest.

Take advantage of your financial future by working through SVA Plumb Financial’s comprehensive checklist designed for university professionals. Download the checklist to determine if your retirement plan is on track.

Article Topic Expert: Brett Christensen

Brett is a Wealth Manager for SVA Plumb Wealth Management, LLC.

Brett’s client centric approach to planning focuses on education, advocacy, and coordination of the goals individuals have for themselves and their family. This holistic approach considers investment, retirement, estate, tax, education, and insurance objectives in shaping a financial plan tailored to the needs of the client.

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