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happytobreathe
The Lazy Days of Summer
Member since 10/06 1413 total posts
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NYC Teachers.. TDA
Help I am filling out this TDA paperwork, better late than never. Anyways..fixed? variable a? variable b? What should I do? How much of my gross am I willing to contribute 5% ? too litte?
THANK YOU!
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Posted 5/11/07 9:33 PM  |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: NYC Teachers.. TDA
FH signed up for his, now that we dont have to save for a house, lol.
I didnt know you had rate options. what is the fixed rate, and the other variables?
if you are young, id say go with 5%, if you can afford more, go for more.
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| Posted 5/12/07 7:37 AM |
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Re: NYC Teachers.. TDA
If I remember correctly, Variable A is the riskiest, Fixed is the safest but has the lowest rate. Right now I have everything in Variable A because I still have a VERY long way to go before I can retire.
I believe you can also designate percentages- i.e. you can put 80% into fixed and 20% in Var A (I'm just using these numbers as an example.)
If you can, I'd put in more than 5%- because it's for retirement, you won't take as much of a hit from your paycheck. For example, when I started mine, I was putting in $100 a check (again, just an example) but my check was only $60 less than usual because of the way it's taxed.
I know people who have retired with a million dollars or more in their TDAs. So it's worth putting in what you can ASAP.
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| Posted 5/12/07 11:36 AM |
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beautyq115
New Year!
Member since 5/05 13729 total posts
Name:
Me
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Re: NYC Teachers.. TDA
Our UFT rep said to do the variable A now and then closer to retirement get into the fixed one...He has been teaching for 20 plus years and from what I hear has been able to save a small fortune with TDA...I have no started it yet.
Now I keep forgetting to ask...if I start one and let's say leave the city for a LI job can I take that money or do I lose it?
Anyone know??? TIA
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| Posted 5/12/07 12:36 PM |
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Re: NYC Teachers.. TDA
Posted by beautyq115
Now I keep forgetting to ask...if I start one and let's say leave the city for a LI job can I take that money or do I lose it?
Anyone know??? TIA
My understanding is that your pension is with the state, so it goes with you if you stay in NY. I think TDA is the same- it's a 403(b) account, and I think that is what all LI/NY districts use. You would not lose it, it's YOUR money. (not to hijack, but it annoys me when some people begrudge us our retirement, since the city does not match a dime- it all comes out of our paycheck.)
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| Posted 5/12/07 12:39 PM |
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happytobreathe
The Lazy Days of Summer
Member since 10/06 1413 total posts
Name:
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Re: NYC Teachers.. TDA
I am wondering what to do. Maybe I should wait till I stop saving for a wedding.
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| Posted 5/12/07 12:50 PM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
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Re: NYC Teachers.. TDA
I have 10 percent taken out each check. Of that 10%, 80% goes to Variable A and the other 20% goes to Fixed.
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| Posted 5/12/07 10:13 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: NYC Teachers.. TDA
Posted by beautyq115
Our UFT rep said to do the variable A now and then closer to retirement get into the fixed one...He has been teaching for 20 plus years and from what I hear has been able to save a small fortune with TDA...I have no started it yet.
yes, that is true, even for 401ks. if you are young, you can invest more in riskier assets, because you are further from retirement. as you get closer you can change your % to more stable.
FH didnt tell me this - he just said "oh I started my TDA". im the finance girl, i need to know!
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| Posted 5/13/07 8:52 PM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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Re: NYC Teachers.. TDA
There was a good article in the recent issue of NY Teacher about this. Basically, it said start young, b/c even if you invest $100/month for 10 years and stop, that could be $250,000 in 30 years whereas if you start investing at 45, it would only be $175,000 or somehting like that.
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| Posted 5/13/07 10:33 PM |
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sharos8
LIF Zygote
Member since 10/12 1 total post
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NYC Teachers.. TDA
FYI Started contributing at 32 10%
went up 1-2 %each year.
Left system at 50
Now at 60 -over 800 thousand in TDA Have not contributed in 10 years
Able to withdraw interest without touching principal
Tier 2 benefit 52000 withdrawing 4000/month tda
100,000 and happilpy retired!
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| Posted 10/29/12 4:32 PM |
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NYC Teachers.. TDA
I started right away at 3% and raised with every raise..now I do 15%. All in variable a since I have miles to go..better off putting something than nothing! Start ASAP!
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| Posted 10/30/12 7:59 PM |
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