Free Washington Retirement Planning Community⁠⁠

In this episode of the Washington Retirement Planning Podcast, we break down one of the most common misconceptions in retirement planning: average rates of return. You’ll learn why averages don’t always reflect your real investment growth, how market fluctuations can distort results, and what truly matters when reviewing your portfolio.

We’ll also tackle a key listener question: How does retiring early affect your pension benefits? We’ll go over reduction rules, penalties vs. “reduced benefits,” and strategies for separating from service without turning on your pension too soon. If you’re planning for retirement in Washington State, or just want to understand how real returns and pensions work, this episode is for you.

0:00 – Intro & episode overview

0:28 – Average vs. real returns explained

0:47 – Context: $100,000 starting balance & S&P timeline

2:17 – Why a positive average return can still mean losing money

3:27 – Example: 4-year scenario showing misleading averages

4:27 – Applying this to the S&P 500 (2000–2018)

6:07 – Why real return matters more than average return

6:23 – Question of the day: early retirement & pension benefits

7:22 – “Penalties” vs. “reduced benefits” in pensions & Social Security

8:28 – Comparing pension reductions to Social Security

9:23 – How early retirement penalties add up

10:21 – Separating from service vs. retiring

10:59 – Breaking even with early retirement strategies

11:20 – WA Retirement Breakthrough

11:42 – Final thoughts & sharing with new teachers

Links:

1. Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

⁠Free Washington Retirement Planning Community⁠⁠⁠In this podcast episode, we talk about four important things many financial advisors often won’t tell you - and then answer the question everyone asks: “How much is enough to retire?” We cover why swapping bonds for certain annuities can reduce downside risk, the massive financial impact of long-term care, the long-term tax exposure in pretax accounts (and the idea of Roth conversions), and why not all advisors are trained in retirement-income planning.After those four “secrets,” we walk through a practical approach to calculating your retirement needs: track actual spending, separate fixed vs. variable expenses, factor in guaranteed income (pension + Social Security), and consider TAP/state annuities to cover shortfalls. You’ll also hear a working withdrawal guideline (used here: ~5%) and real examples to help turn abstract percentages into usable monthly numbers.The episode also touches on how to adjust withdrawal rates based on life stage, why managing your own portfolio can be surprisingly time-consuming, and how annuity payout rates compare to market-based withdrawals. The host wraps up with details on a free online community and how to book a consultation.0:00 - Intro2:17 - 1) Annuities as bond replacements - performance & risk reduction3:12 - 2) Long-term care - 70% likelihood and the cost risk to retirement funds4:16 - 3) Taxes - long-term tax exposure and why Roth/tax planning matters5:52 - 4) Advisor expertise - many advisors aren’t specialists in retirement-income planning7:09 - Question of the day: “How much is enough?” - track spending; fixed vs. variable expenses9:01 - Using TAP/state annuity to cover guaranteed-expense shortfalls12:01 - Withdrawal approach (practical ~5% rule), Vanguard findings & time commitment for DIY investors16:29 - TAP payout rates and Plan 2 vs. Plan 3 differences (cost-of-living adjustments explained)Links:

1. Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

Free Washington Retirement Planning Community⁠⁠⁠

In this episode of the Washington Retirement Planning Podcast, we break down one of the most important decisions you’ll make with your pension: survivor benefit options.

Whether you’re about to retire or just starting to plan, understanding how these options work can make a huge difference in your long-term income and your spouse’s future financial stability.

We walk you through the four main survivor options offered by Washington State DRS, explain how age differences affect pension reductions, and even show you how to calculate your benefit using administrative factor tables. You’ll also learn the common mistakes people (and even advisors!) make when planning without factoring in survivorship reductions.

If you’re changing school districts or employers, stay tuned for bonus tips on pension contributions, 403(b) transfers, and Roth deferred comp strategies to protect your finances and keep more flexibility in your budget.

00:06 – Intro: Survivor Benefit Options Explained

01:13 – Why This Decision Matters (And When You Make It)

02:05 – How Pension Reduction Works With Survivorship

02:54 – Option 1: Max Benefit (No Survivor)

03:12 – Options 2, 3, 4: 100%, 50%, 66.67% Explained

03:44 – Administrative Factors: What They Are & Why They Matter

04:01 – Example Calculation

06:17 – Common Mistakes & Why Most Retirees Don’t Choose Option 1

07:44 – Q&A: Moving School Districts? What You Need to Know

09:00 – Why Plan 3 Contributions Can Be a Trap

09:49 – Use Roth 403(b) or Deferred Comp Instead

10:17 – Don’t Forget to Transfer Your 403(b) When Changing Jobs

11:05 – Deferred Comp vs. 403(b): What’s Better Now?

12:11 – Free Community & Resources for WA State Employees

Links:

1. ⁠⁠Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

Free Washington Retirement Planning Community and Courses:

https://www.skool.com/wa-retirement-planning-1635/about

Thinking about purchasing service credits from the Washington State Department of Retirement Systems (DRS)? In this episode, we break down everything you need to know before making this irreversible decision.

You'll learn:

1. Who qualifies to buy service credits

2. How they can boost your pension

3. What it costs (and how to calculate it yourself)

4. How long it takes to break even

5. When it makes sense — and when it doesn’t

We also answer real listener questions about comparing service credits to annuities, tax implications, and what happens to your investment if you pass away.

Whether you're close to retirement or just exploring options, this episode will help you make an informed, confident decision.

00:00 – Intro: What Are Service Credits?

00:27 – Should You Buy More? Common Questions

01:04 – Tools to Estimate Cost & Break-Even

02:04 – Who Can Purchase Credits & When

02:41 – Why They Get Cheaper With Age

03:08 – Service Credits ≠ Early Retirement Eligibility

03:47 – Where the Money Must Come From (Not Plan 3!)

04:25 – Sample Calculation: 5 Years at Age 60

06:14 – Break-Even Analysis & ROI Explained

07:56 – Listener Q1: Buy Service Credits vs. Annuity?

10:20 – Listener Q2: What If I Pass Away After Buying?

12:58 – Listener Q3: Can I Buy Credits to Reach Early Retirement Faster?

14:01 – Final Thoughts: Strategy, Calculator & Free Course

Links:

1. ⁠⁠Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

In this episode of the Washington Retirement Planning Podcast, Ethan breaks down 4 powerful ways to secure guaranteed retirement income for life, including state pensions, Social Security, and annuities.

Then, the conversation shifts to the most important factors to consider when deciding between retiring early or waiting for full retirement benefits. From the financial math behind pension penalties to real-life healthcare costs and emotional readiness, this episode is packed with insights for public employees planning their next chapter.

Whether you're a few years out from retirement or just getting started, this episode will help you make informed decisions with confidence.

00:00 – Intro & Episode Overview

01:15 – 4 Ways to Get Guaranteed Income in Retirement

02:18 – Option 1: Social Security

04:21 – Option 2: Defined Benefit Plans (State Pensions)

05:17 – Option 3: Immediate Annuities

05:50 – Option 4: Income Rider Annuities

07:44 – Should You Retire Early or Wait for Full Pension Benefits?

08:10 – Break-even Analysis for Early vs. Full Retirement

10:41 – What About Healthcare After You Retire?

13:06 – Social Security Timing & Early Retirement

13:52 – Understanding Your Income Sources

14:43 – Budgeting & Lifestyle Expectations

17:32 – Longevity Risk & Health Considerations

19:16 – Emotional Side of Retirement

20:30 – Final Thoughts & Retirement Planning Support

Links:

1. Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

In this episode of the Washington Retirement Planning Podcast, we break down the 5 biggest risks facing retirees today, and how Washington State employees can defend their future.

From longevity risk to market volatility and inflation, this episode is packed with actionable insights for teachers, public employees, and anyone in PERS, TRS, or SERS.

We also tackle the #1 question clients keep asking:

💬 “Should I start collecting Social Security early—before it’s gone?”

If you’ve been feeling the pressure from market downturns, economic uncertainty, or rising costs, this episode will give you the clarity you need to retire confidently.

📞 Need help planning your retirement or managing investments?

Visit the link below to book a free retirement strategy session.

00:00 – Intro & Market Volatility in 2025

01:27 – 5 Major Risks You Must Prepare For in Retirement

01:55 – ✅ Risk #1: Longevity Risk (Outliving Your Money)

02:40 – ✅ Risk #2: Inflation & Cost of Living Adjustments (COLA)

03:43 – ✅ Risk #3: Withdrawal Rate Risk (The 4% Rule Myth)

04:34 – ✅ Risk #4: Sequence of Returns Risk

05:37 – ✅ Risk #5: Market Rate Risk (Why the Market Might Not Recover Fast Enough)

06:30 – Solution: Lifetime Income Annuities – What They Are & How They Work

08:00 – Real-Life Client Example: Retiring 930 Days Earlier

08:27 – Listener Question: “Should I Take Social Security Now?”

10:00 – Pros & Cons of Taking Benefits Early

11:55 – Final Thoughts: Why Planning Ahead Changes Everything

13:15 – Book Your Retirement Plan Call (Link in Description)

Links:

1. Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

Thinking about retiring early on Plan 3? While having control over your pension payouts is great, there are hidden risks and key decisions that could make or break your retirement plan. In this episode, we cover:

✅ Plan 3 early retirement penalties – What to expect if you retire before 62

✅ Should you delay collecting your pension? Pros & cons of waiting until 65

✅ Social Security timing – Why taking it early can be a costly mistake

✅ How to use your Plan 3 investments wisely – The best withdrawal strategies

✅ PEBB healthcare options – How to stay covered before Medicare kicks in

✅ Veba & sick leave – Smart ways to use these benefits tax-free

🔹 Whether you're considering early retirement or just want to maximize your Plan 3 benefits, having a strategy is key. Don't leave your financial future to chance!

📢 Join our Free Washington Retirement Planning Community⁠⁠

📅 Plan 3 Investment Advice⁠ / ⁠Schedule Meeting⁠

👍 Like, subscribe, and hit the bell for more retirement insights!

00:00 – Intro: Plan 3 Early Retirement Explained

00:26 – Key Rules for Retiring Early on Plan 3

01:24 – How Early Retirement Penalties Work

02:36 – Should You Take Social Security Early?

02:51 – How to Use Plan 3 Investments to Cover Early Retirement

03:26 – Healthcare Before Medicare: PEBB Coverage Options

04:12 – Using Veba & Sick Leave to Your Advantage

05:35 – Listener Question: Should You Delay Taking Your Pension to 65?

06:38 – Why Delaying Might NOT Be the Best Move

08:08 – Break-even Analysis: 62 vs. 65 Pension Collection

09:28 – The Hidden Risk of Delaying Pension Payments

10:38 – Final Thoughts: How to Retire Early with Confidence

Washington State’s Plan 2 pension is incredible, but is it enough to retire stress-free? Many employees assume their pension + Social Security will cover everything—but that’s not always the case. In this episode, we break down:

✅ Early retirement rules for Plan 2 – What penalties apply?

✅ Why your pension isn’t “set and forget” – Hidden financial risks

✅ Healthcare & taxes in retirement – Costs you might not expect

✅ Why you still need savings & investments – Even with a great pension

✅ Estate planning & long-term care – Protecting your legacy

🔹 If you’re relying only on Plan 2, you could be leaving yourself exposed to rising taxes, inflation, and healthcare costs. A strong retirement plan is more than just a pension—it’s a strategy for keeping more of your money and retiring with confidence!

00:00 – Intro

00:24 – Plan 2 Basics: How It Works & When You Can Retire

01:01 – Early Retirement Penalties & Why They Matter

02:03 – Biggest Mistakes Plan 2 Retirees Make

02:42 – Rolling the sick leave into VEBA

03:44 – How Social Security is Taxed (What Most People Miss!)

04:43 – Q&A: How do people expect the government to care for them?

07:27 – The Risk of Rising Taxes & Inflation on Your Pension

09:12 – Healthcare & Long-Term Care Costs in Retirement

11:40 – Inflation vs COLA

13:03 – Estate Planning: Why You STILL Need a Will & Power of Attorney

15:06 – Final Thoughts: How to Retire with More Confidence

Links:

One of the biggest challenges of early retirement is figuring out how to afford healthcare before Medicare kicks in at 65. Many Washington State employees hesitate to retire early due to high healthcare costs—but with the right strategies, you can retire earlier than you think!

In this episode of the Washington Retirement Planning Podcast, we break down realistic ways to cover healthcare costs, including:

✅ Cobra vs. PEBB Benefits – Which one is right for you?

✅ Health Insurance Options – Private plans, spouse coverage & state benefits

✅ Paying for Healthcare – Using your pension, VEBAs & investments

✅ Early Retirement & Full Benefits – When can you retire under PERS, TRS, & SERS?💡

Want to retire early with confidence?

We help Washington State employees plan their pensions, reduce taxes, and retire smarter.👉 Like, subscribe, and turn on notifications for more retirement planning content!

00:00 – Intro & Why Healthcare Costs Delay Retirement

01:12 – Listener Question: When Can I Retire with Full Benefits?

02:04 – Spouse’s Insurance: The Cheapest Option?

02:25 – Cobra Coverage: Pros & Cons

04:00 – PEBB Benefits: Who Qualifies & How It Works

07:17 – Plan 2 vs. Plan 3 Changes (2024 Update)

08:21 – Washington Health Exchange & Private Plans

09:15 – Tax Credits & Hidden Costs of Health Plans

11:36 – Medicare at 65 – What You Need to Know

12:50 – How to Pay for Healthcare Before Medicare

13:39 – Part-Time Work & Employer Coverage

14:35 – Using Your Retirement Portfolio to Cover Costs

17:54 – VEBA Accounts – Tax-Free Healthcare Funding

19:49 – Early Retirement Mistakes & Success Stories

27:46 – Final Thoughts – Why You Can Retire Sooner Than You Think!

Links:

1. ⁠⁠Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

Thinking of retiring early as a Washington State Employee? This podcast dives into everything you need to consider before leaving the workforce. Learn about:

1. Penalties for taking your pension early and how they decrease with more years of service.

2. Options for covering medical expenses if you’re no longer insured through the state.

3. The importance of consulting a financial advisor to avoid costly mistakes.

We also answer a key listener question about service credits and how they impact your retirement income. Don’t miss this essential guide for teachers, public employees, and more!

0:00 Introduction

1:03 Pension Rules for Early Retirement

1:24 Alternative Strategies – Using investment accounts instead of pensions

3:12 Social Security – Timing and penalties explained

4:01 Medical Coverage Options – VEBA accounts, part-time work, and more

5:43 Q: Maximizing Service Credits – How more credits boost your pension

7:29 Final Thoughts – Balancing retirement timing and life goals

• Useful links:

1. ⁠⁠Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠