ARE YOU PREPARED?

A checklist for each life stage

Your TRA pension, Social Security, 403(b), and personal savings can provide a comfortable retirement. But smart planning also means tending to key tasks throughout your career. Manage money well now, enjoy more security later.  

20s and 30s (early career)

• Make a budget. Know what your income is and learn not to spend more than that. That’s how you’ll start to build your wealth.
• Pay down your debt and know the interest rates for each of your loans. Focus on paying down high-interest loans first. Paying more than the minimum payment on a lower interest loan like your student loan before paying off a higher interest credit card might not be in your best interest.
• Sign up for your school’s 403(b) tax-sheltered annuity. Contribute the amount required to get the employer “match.” (Free money!) If you can afford it, also begin contributing to a Roth IRA.
• Create a MyTRA online account. Update your profile so you don’t miss important communication from TRA. Review your annual statement to monitor your accumulated service credit, your contributions, and your employer deductions.
• Keep your beneficiary designations up to date. When you name a beneficiary on an account, you’re designating who should receive the assets in the event of your death. This is a basic financial task you’ll have to return to, as your life changes.
• Find a financial planner who will work with you for a couple of hours for a flat fee. He or she can give you a high-level overview of what you should focus on money-wise. This is another financial task you’ll return to as your life changes.

30s and 40s (mid-career)

• Revisit your household budget. Make sure you’re living within your means.
• Continue paying down debt. Know the interest rates for each of your loans and focus on paying down high-interest loans first. Paying more than the minimum payment on a lower interest loan like your student loan before paying off a higher interest credit card might not be in your best interest.
• Sign up for a 403(b) tax-sheltered annuity. Contribute the amount required to get the employer “match.” (Free money!) If you can afford it, also begin contributing to a Roth IRA.
• Create a MyTRA online account. Update your profile so you don’t miss important communication from TRA. Review your annual statement to monitor your accumulated service credit, your contributions, and your employer deductions.
• Keep your beneficiary designations up to date. When you name a beneficiary on an account, you’re designating who should receive the assets in the event of your death.
• Open an online Social Security account. Review estimates of your future retirement, disability, and survivor benefits.
• Find a financial planner. Talk with them about whether you have the right mix of savings—your TRA pension, 403(b), IRA, Social Security, etc.—for retirement.

50s (nearing retirement)

• Work toward being debt free. You’re going to be living on a fixed income.
• Determine eligibility. If you are age 55 or older and vested in TRA, you are eligible to apply for a retirement benefit, though it pays to wait until age 66.
• Review TRA’s annuity plan options.
• Contact the Social Security Administration to determine your options.
• Generate TRA retirement benefit estimates by logging in to your MyTRA account.
• Find a financial planner to discuss how best to turn your savings—your TRA pension, 403(b), IRA, Social Security, etc.—into income during retirement without getting hit with a big tax bill.
• Contact any other Minnesota public retirement funds to which you have made contributions, even if refunded, for a possible combined service annuity benefit.
• Make an appointment with a TRA retirement counselor. You will get a personalized, detailed estimate of your projected monthly retirement benefit. The retirement application process and key decisions are also explained.
• Contact your employer to determine requirements for submitting your resignation notice. Resignation should be effective on the last day of work.
• Review your health insurance options (through school district or supplemental insurance providers).
• Submit your retirement application to TRA.