In the words of Alice Cooper, “Schooooool’s out for summer!” Welcome everyone to Finance Friday. The last part of May is a busy time of the year for parents and students as they attend graduation ceremonies and last day of school activities. Today’s segment is dedicated to all of the educators, teachers, coaches, and professionals that work in the education community. Due to the unique work schedule, a large number of people in the education community don’t work in the months of June and July. Here are 3 financial tips for you to work on during your time off this summer.
Review your Retirement Benefits
Educators have 2 main retirement benefits: a pension and a Qualified Retirement account (a 403B or 457B), which is similar to a 401K. This is a good time to review both accounts. For the Pension, or TRS here in Texas, review the top 5 salaries that are on record to make sure they are consistent with your plan. For the Qualified plan, make sure to review the investments inside of your retirement account to see if they are still consistent with your risk and your financial goals. If they are not, ask your advisor to look at the annual statement to see what they would advise to do.
Prepare your Tax Planning for the Tax Year
Schedule an appointment with your tax professional. This is a good time as the majority of tax season is over and the extension season has not begun. Review your tax return and go over any tax planning strategies. This way, when you have your November check-in, you’ll already be a step ahead in your planning for the tax year.
Review your Estate Planning Most people have vacations lined up and will be traveling for the summer. This is a good time to review your wills to make sure they are updated. If you don’t have a will done, now’s a good time to begin the process. The time off should give you an opportunity to focus on some of the items that your Estate Planning attorney has sent you.
Remember to submit your questions and thoughts on our discussion to hector@hrcfin.com. Don’t forget to follow HRC Financial on Facebook and LinkedIn for more Finance Friday Tips and Insights.
I believe our teachers and educators are a vital part of our children’s success and again I want to extend a thank you for all of the hard work that you. Thank you for your time this morning and we’ll see you next week for Finance Friday!