By: Tonya Williams
Employee Relations Specialist
As a School District of Janesville employee, you are enrolled in the Wisconsin Retirement System to provide you a pension once you retire. Although this benefit is robust, one should consider other retirement tools to replace your pre-retirement income. In fact, most financial planners will tell you that you need to replace 70 percent of your pre-retirement income in order to maintain your current lifestyle.
Currently, the School District of Janesville partners with WEA Trust and Retirement Plan Advisors (RPA) to provide financial planning to our staff, as well as provide the convenience of using payroll deductions to contribute to a tax-sheltered annuity vehicle. In fact, the District has 440 staff members that currently contribute to a tax-sheltered annuity.
As a school district employee, there are many plans available for you. A traditional 403(b) allows you to contribute pre-tax dollars into a retirement account. You will benefit from reducing your taxable income, and will have a tax-deferred income in retirement. A Roth 403(b) allows you a tax-free income in retirement while providing a tax-free growth. A 457 Deferred compensation allows you to reduce your taxable income, and it provides income for employees retiring before age 59 ½.
What’s the first step to start saving for retirement? As a District employee, you should contact David Mabie from WEA at 800-279-4030 or Angel Tullar from Retirement Plan Advisors at 608-531-0190 to set up an appointment. Key financial points that both vendors will guide you through to strategize your retirement plan will be to decide your target retirement age and income, what tax-deferred savings vehicles are best for you, and if you should diversify your investments.
The sooner you begin investing for retirement, the more potential your retirement savings can grow by the time you reach retirement age, so make a commitment to start saving for your retirement today!