Retired Devo teacher Bob Miller is the BEU Financial Consultant (Bob Miller from Heath is BEU vice-president).

Much Ado about Money for New Teachers & Paraprofessionals

Investing for your future with the 403b – First of all, welcome to the PSB! As you begin your career in education, you should be aware of a great investment opportunity, the 403b7. This retirement account – completely separate from your MTRS retirement account – is a pre-tax dollar funded retirement account, and it’s almost identical to the 401K in the private sector.

Contributions are tax deductible: If you earn $50,000 and regularly contribute $125.00 for each pay period to your 403b, the annual contribution will amount to $2,625.00. The IRS will now assess taxes on $47,375, yielding an annual tax savings of $625.00.
$452,331! That’s how much a 25 year old teacher would amass in their 403b after 35 years of investing a mere $125.00 per check, assuming a historically modest 8% per annum return.
Such a deal! You don’t pay ANY taxes on dividends, interest or capital gains until you’re 70.5!
October Enrollment. The first BEU sponsored enrollment workshop will be conducted in the BHS lunch area next to the MLK room on Thursday, October 5 beginning at 3:15 PM. Please bring your laptop, a smartphone and set aside 60 minutes to complete the entire, pain free 403b enrollment process.

**You will need to bring your smartphone and a laptop to complete the enrollment form!

Saving on a new mortgage or considering refinancing – Does half a percent or even a quarter of a percent really make that much of a difference in your mortgage payment? Absolutely! The difference between an interest rate of 3.78% and 4.28% translates into a savings of $1,000 per year and $30,000 over the life of a 30 year loan! If you’re exploring the possibility of refinancing or purchasing a home, you should take advantage of the MTA’s discounted mortgage program with Berkshire Bank. The contact person is Bill Poirier, Senior Mortgage Consultant: bpoirier@berkshire bank.com. (Countless BEU members have participated in this program over the years.)

You need a will! – According to a recent survey, 78% of Millennials do not have a will. If you die intestate – without a will – your assets will be governed by the laws of “intestate succession.” In the case of a married couple in MA, you might be surprised to learn that your surviving spouse is only entitled to receive 50% of your assets with the remainder divided amongst relatives – some of whom you may not like. In short, don’t wait like Prince until “the party over” and “Oops out of time.” Create a simple will for as little as a couple of hundred dollars with LegalZoom, RocketLawyer or USLegalWills.com.

Bob Miller, BEU Financial Consultant and retired Devotion teacher: odysseus7@comcast.net