Teacher Pension Case Study: by Actuaryonfire.

There is some good news.  My biology degree and teacher license hardly qualifies me to examine my pension, and I wasn’t the guy to do this analysis.

Actuaryonfire’s day job is as an actuary (compiles and analyzes statistics, and uses them to calculate insurance risks and premiums).  He is one of my favorite bloggers, and definitely one of the smartest bloggers out there.  In order to understand, I have to read his posts several times, but he breaks things down so that I always understand almost 90% of what he says.

It is pretty common for personal finance bloggers to post net worth.  I always feel inadequate posting my net worth side-by-side with the millennial bloggers. The comparison is unfair because their retirement has a cash value based on their 401k’s, while my pension as a 44 year old teacher is difficult to quantify.  My pension will create a stable cash flow in 8 years, but I appear far from financial independence when compared with others on the list.

Actuaryonfire analysed another blogger’s pension (Gwen from Fiery Millennials) last month, and I immediately began begging him to take a look at mine.  My words were in fact “Do me. Do me.”

Aof actually was generous enough to help me out, that post went up today, and it is linked below.  Go check it out along with the rest of Actuaryonfire’s site.

Click on the picture below to be taken to:

Actuaryonfire’s Teacher pension case study featuring me.

Teacher’s Pension Case Study – Mr Jumpstart

I was pretty happy about the numeric value.   Actuaryonfire’s analysis of the benefits of pay raises intrigued me as well.

Roanoke County teachers got a pay raise this year that coincided with a raise in benefit deductions.  After our pay raise, my pay check went down by 9$, and Mrs. Jumpstart’s went up by 11$.  I was pretty f&!&king pissed disappointed when I saw our first paychecks.  However, if income during retirement is the focus, the disappointing paycheck becomes less of an issue.  Any increase in salary now will pay off as increased retirement income.

Actuaryonfire also emphasized the value of earning salary bumps.  Mrs. JS and I must carefully examine our options for raises with 12+ and 24+ graduate hours. We’ve got about 4 years to ensure higher salaries during our final 3 years teaching.

Thanks again to Actuaryonfire.

Posted in Family finances.

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