Retired Devo teacher Bob Miller is the BEU Financial Consultant (Bob Miller from Heath is BEU vice-president).  Here’s Bob’s first 2017-2018 financial message, including a workshop scheduled for October 5.  Save the date!

Much Ado about Money for Educators!

Investing for your future with the 403b –  As you think about your teaching career, you should be aware of a great investment opportunity for teachers, 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 lunchroom 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.

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