Don’t Just Run Out the Clock — Keep Scoring

Once you’re vested, don’t just “run out the clock” until you’re eligible to retire! The smartest players in the game of retirement keep building their savings.

By Rebecca L. Bennett

 

Once you have earned enough service time to become vested with your TCDRS employer, all you have to do to “win” in retirement someday is “run out the clock” by continuing to work until you’re eligible to retire, right?

Not quite. Vesting does mean you can claim a TCDRS benefit someday and it’s an important part of your retirement savings game plan. But you shouldn’t rely solely on this source of income.

Make it Rain

Just like sports teams can put up more points if they have multiple high-performing players in their starting lineup, the ideal retirement savings strategy means setting up several different retirement income streams. In addition to Social Security, opening a 457, 401(k) and/or IRA and making consistent contributions can be a great way to supplement your income later in life.

Saving is a Slam Dunk

And don’t sleep on traditional saving strategies. Before you officially step off the court and into retirement, make sure you have saved enough in your emergency fund (for large unexpected expenses) and rainy-day fund (for smaller unwelcome surprises) to keep your budget afloat when life happens.

Listen to Your Coaches

You might also consider adding a financial planner to your team. Like a savvy coach, this individual will help you devise a championship-worthy game plan and help you make financial fitness gains.

We’ll also be here, cheering you on either from the sidelines or by joining you on the court. If you’re up for a little one-on-one, we’re always available to answer your questions over the phone or in an online counseling session.

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