In this episode, we provide an essential guide for new teachers in Washington State to navigate their retirement options. From understanding the differences between Plan 2 and Plan 3 to exploring key savings tools like the Deferred Compensation Plan (DCP) and 403(b) plans, we break down how to make the most of your benefits.

You’ll also learn about student loan forgiveness options, tips for maximizing your pension, and strategies to fill income gaps during retirement. Plus, we address real questions from a new teacher to ensure you’re set up for financial success right from the start.

Whether you're starting your career or want to future-proof your finances, this episode is packed with actionable advice to help you retire with confidence!

0:00 - Introduction

1:49 - Student Loan Forgiveness

2:32 - Become NEA / WEA Member

4:03 - Plan 2

7:11 - Plan 3

1:08 - Deferred Compensation Plan (DCP)

12:22 - Roth IRA

13:25 - 403(b) / TSA

18:50 - How to Enroll in Your 403b

20:07 - Q: What's better - Plan 2 or Plan 3?

20:44 - Q: How much do you need to set aside into a 403b to meet your retirement goals?

21:56 - Q: How to change the 403b / modify your retirement investment?

22:37 - Q: What's the process of setting up a 403b in a School District?

22:37 - Q: What's the optimal amount to put in a 403b to lower your tax bracket?

24:41 - Washington Wealth Breakthrough

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, we break down Plan 2 vs. Plan 3 in Washington State's DRS retirement systems (TRS, SERS, and PERS). Which plan makes more sense for your future? We’ll cover the guaranteed income of Plan 2, the flexibility of Plan 3’s defined contribution portion, and why factors like indexing, liquidity, and early retirement matter.

We also compare real-world scenarios: how much you’d need saved in Plan 3 to match Plan 2’s income and what happens if you stop working early. Plus, we address common misconceptions and comments about these plans, giving you clarity on your retirement options.

Whether you’re new to the system or reevaluating your choices, this podcast will help you make an informed decision for long-term financial security.

0:00 - Introduction

2:02 - Plan 2 vs Plan 3 Overview

8:21 - Addressing Comments

24:53 - Final Thoughts

If you want to take your planning even further, join our free retirement community for exclusive insights and resources (link down below). Make the most of your retirement options today! 🚀

• 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, I break down the essential steps for enrolling in a 403(b) plan, tailored specifically for school district employees in Washington State. Learn the differences between mutual fund and annuity-based 403(b) options, how to select the best vendor, and how to avoid common mistakes that can cost time and money.

I also address a listener's question about managing small 403(b) accounts in retirement, including strategies like rolling over into an IRA or leveraging an income annuity. Whether you're setting up your first plan or figuring out how to maximize an existing one, this episode has actionable tips to help you retire sooner and pay less in taxes.

Be sure to join my free community on School for exclusive courses and resources designed to simplify your financial planning journey. Links and resources mentioned are in the description below!

00:00 – Intro

01:18 – How do we enroll in a 403(b) Plan?

02:14 – Step 1: Understand what your options are

03:37 – Step 2: Choosing Between Annuity-Based and Mutual Fund-Based Plans

08:18 – Step 3: Completing Your Application

10:12 – Step 4: Submitting Your Salary Reduction Agreement (SRA)

11:26 – Step 5: Tracking Contributions and Avoiding Payroll Errors

14:16 – Listener Question: Options for Small 403(b) Accounts

19:42 – Washington Wealth Breakthrough - 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, we uncover the “tax bomb” lurking in pre-tax retirement accounts like Plan 3, DCP, and 403(b).

I explain how current tax laws, RMDs, and future tax increases could cost you more than you expect in retirement.

Learn strategies to minimize these impacts, like Roth conversions, reducing taxable withdrawals, and proactive tax planning.

Plus, I answer a listener's question on making wealth transfers easier for beneficiaries. Don’t let taxes eat away your retirement savings—tune in for actionable advice!

0:00 - Introduction: Understanding the tax bomb in retirement accounts
0:30 - Why pre-tax accounts like Plan 3 and DCP are vulnerable
1:25 - How national debt could drive future tax increases
3:00 - RMDs: When you’re forced to withdraw (and pay taxes)
5:10 - Why you might pay more taxes in retirement than expected
7:20 - Example: Saving $155,000 but paying taxes on $1M+
9:40 - Tax planning strategies: Roth conversions and after-tax accounts
11:00 - Tools for reducing taxes on inherited accounts
13:30 - Estate planning tips: Wills, trusts, and beneficiary alignment
15:00 - Listener question: Simplifying wealth transfer to beneficiaries
17:30 - Final thoughts: Take control of your tax future

Check out these too:

1. ⁠⁠⁠⁠⁠⁠⁠Free Washington Retirement Planning Community⁠⁠⁠⁠⁠⁠⁠

2. ⁠⁠⁠⁠⁠⁠Plan 3 Investment Advice⁠⁠⁠⁠⁠⁠

3. ⁠⁠⁠⁠⁠⁠Schedule Meeting⁠⁠⁠⁠⁠⁠

4. More free resources at ⁠⁠⁠⁠⁠⁠WATRSPERS.com⁠

In this Washington Retirement Planning Podcast episode, I share actionable strategies to get the most out of your 403(b) retirement account. Learn about contribution limits, creative funding techniques, and tax-efficient setups like Roth 403(b)s. I also explain how to choose the best providers, optimize investment options, and navigate hidden benefits like the 15-year catch-up rule. Plus, I address a listener’s question about health insurance options for early retirees. Tune in to maximize your retirement savings and ensure a secure financial future!

0:00 - Introduction: Why 403(b) plans matter

0:30 - Key strategies to maximize your 403(b) contributions

1:55 - Understanding annual contribution limits and catch-up options

3:06 - Creative ways to fund your 403(b) using existing savings

3:58 - Timing contributions with extra income like coaching or bonuses

6:10 - Getting the right 403(b) plan from the start

6:55 - Choosing the right investments

7:56 - 403(b) loan provisions

8:42 - Tax considerations: Pretax vs. Roth contributions

12:17 - Question: Health insurance, Medicare

15:54 - Health insurance options for retirees under 65 (PEB and beyond)

16:33 - Free guides to accessing and transferring 403(b) funds

Check out these too:

1. ⁠⁠⁠⁠⁠⁠Free Washington Retirement Planning Community⁠⁠⁠⁠⁠⁠

2. ⁠⁠⁠⁠⁠Plan 3 Investment Advice⁠⁠⁠⁠⁠

3. ⁠⁠⁠⁠⁠Schedule Meeting⁠⁠⁠⁠⁠

4. More free resources at ⁠⁠⁠⁠⁠WATRSPERS.com⁠

In this Washington Retirement Planning Podcast episode, I break down the tax implications of Plan 3 retirement accounts. From understanding Plan 3 as a pre-tax 401(a) to strategies for minimizing taxes when you withdraw, this episode covers it all. Learn why transferring funds to an IRA isn’t taxable, but withdrawals are, and how calculating a safe withdrawal can prevent tax surprises. We also discuss Roth conversions, penalties, and proactive tax planning for the future. Whether you’re near retirement or just starting to plan, tune in to maximize your financial strategy.

0:00 - Introduction to Plan 3 tax implications

1:20 - Why Plan 3 isn’t a 401(k) or IRA: It’s a 401(a)

2:35 - Understanding tax timing: When transfers are taxable

3:00 - Withdrawal tax rates and examples (+net amounts)

7:03 - How to withdraw tax efficiently for your needs

8:38 - Our solution

10:18 - The importance of proactive tax planning

11:15 - Resources for personalized tax and investment guidance

Check out these too:

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 explore the benefits of including an annuity in your retirement portfolio. I’ll cover the four key reasons an annuity might be right for you, from providing guaranteed income to protecting your money during market downturns. Discover how annuities offer tax advantages and ways to reduce portfolio fees without sacrificing growth. Plus, I answer a listener’s question about the importance of 30 years of service for Washington State employees and what penalties apply for early retirement. Tune in to learn how annuities could enhance your retirement plan!

0:00 - Intro

1:27 - An annuity is the only investment that can guarantee you a lifetime stream of income

2:28 - Protect your money

3:45 - Tax Deferral Benefit

4:16 - Eliminate fees and expenses from your retirement portfolio

5:17 - You don't have to put everything into the annuity

7:10 - Explaining the 30 years of service for the Employees

13:24 - WATRSPERS free course

Check out these too:

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, I break down investment options for Plan 3 members, covering everything from choosing funds to the challenges of finding quality advice. I’ll explain the Rule of 100 to help you assess your risk level and introduce a custom subscription platform with 10 investment models designed for Plan 3, updated regularly for both conservative and aggressive investors. Plus, I’ll answer a common question about the differences between 403(b) and 457 plans. Tune in to get a solid foundation for managing your retirement investments!
0:00 - Intro
3:05 - Ep 14 - Plan 3 investments
3:38 - The investment types in Plan 3
4:36 - WSIB Program vs. Self-Directed
5:58 - Targeted funds
6:54 - The investment advice
7:33 - The investment performance
9:30 - The rule of 100
12:49 - Our service
13:12 - 403(b) vs 457
16:42 - WATRSPERS

Check out these too:

1. ⁠⁠Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

In this episode, we dive into the key strategies for ensuring your retirement savings last as long as you do. From the outdated 4% rule to more reliable guaranteed income options, we explore the pros and cons of each approach. Learn why relying on the stock market alone may not be enough and how guaranteed strategies, like annuities, can provide lifelong financial security. Plus, we tackle how to report IRA withdrawals on your taxes and answer listener questions. Tune in to get expert insights on maximizing your retirement income!  

0:00 - Intro2:43 - The outdated 4% rule and its limitations
3:43 - How market volatility impacts retirement strategies
5:37 - Non-guaranteed strategies: Real estate, portfolios, and risks
6:17 - Guaranteed strategies: Why annuities provide lifetime security
8:02 - Misconceptions about annuities and fees

9:00 - Am I pro-annuity?10:02 - Comparing the 4% and 5% rules
10:26 - The 3-bucket strategy for income in retirement  
12:00 - How to claim IRA withdrawals on your taxes14:00 - Upcoming retirement course for state employees  

⁠⁠Free Washington Retirement Planning Community⁠⁠

⁠Plan 3 Investment Advice⁠

⁠Schedule Meeting⁠

More free resources at ⁠WATRSPERS.com⁠

The Last Decade: 10 Essential Tips for a Smooth Retirement and Understanding Roth ContributionsIn this episode of the Washington Retirement Planning Podcast, host Ethan Rico offers 10 crucial tips for employees in the last 10 years of their careers.

These tips are designed to help listeners retire earlier, minimize taxes, and enjoy more free time.

Topics include budgeting, creating a written financial plan, adjusting investment risks, increasing savings, and ensuring proper liability coverage.

Ethan also answers a listener's question about contribution limits for Roth accounts and emphasizes the importance of tax-advantaged savings

Listeners are encouraged to complete an anonymous survey to provide feedback and suggestions for future content and services.00:00 Introduction to the Podcast00:21 10 Tips for the Last 10 Years of Your Career02:41 Tip 1: Budgeting for Your Household03:33 Tip 2: Building a Written Financial Plan04:11 Tip 3: Reducing Investment Risks04:42 Tip 4: Paying Off High-Interest Debt05:33 Tip 5: Increasing Your Savings06:29 Tip 6: Tax Diversification07:01 Tip 7: Long-Term Care Coverage08:50 Tip 8: Investing in Guaranteed Income09:41 Tip 9: Setting Up Trusts and Wills10:30 Tip 10: Updating Liability Coverages11:32 Listener Question: Contribution Limits for Roth Accounts14:22 Maximizing Tax Advantages18:13 Conclusion and Legal Disclosure

2024 Survey

⁠⁠Free Washington Retirement Planning Community⁠⁠

⁠Plan 3 Investment Advice⁠

⁠Schedule Meeting⁠

More free resources at ⁠WATRSPERS.com⁠