PenMaxExampleKaley
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TEXAS TEACHER RETIREMENT SYSTEM PENSION MAXIMIZATION
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Information About You
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TRS ParticipantKaleyFemale34years old
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SpouseMattMale39years old
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Kaley has Participated in the TRS for
5years.
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Kaley's current annual salary is
$36,570$36570 is the average for 5 years of service in Hays county.
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Scenarios
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Changing the inputs in green text will allow you to see how they affect financial outcomes for you and your family illustrated in the box below.
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Kaley Plans to retires at age65
after 36 years of service.
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Kaley survives20years past retirement. Kaley lives to be 85 years old.
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Who survives whom? Kaley, Matt, or Neither (both die in same year).kaley
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Kaley Survives Matt by0years. Matt lives to be 90 years old.
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TEACHER RETIREMENT SYSTEM JOINT AND SURVIVOR BENEFIT
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Annual Cost to Kaley and Matt of a 100% Joint & Survivor benefit is:$5,112which equals $426 per month. Beginning at retirement.
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Total Cost$102,237
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Value to Matt$0
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Value to your kids, grandkids, and great grandkids$0
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VERSUS
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PENSION MAXIMIZATION
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Annual Pension Maximization Contribution$3,300
which equals $275 per month.
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Option 1 - Continue Pension Maximization until Kaley's passing
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Total Contribution$168,300
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Value to your kids, grandkids, and great grandkids at time of Kaley's passing.$645,643
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Option 2 - Terminate Pension Maximization at Matt's passing
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Kaley would withdraw her Pension Maximization account balance of:$345,643
and no longer pay $275 per month.
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She will have a net profit on Pension Maximization of:$177,343
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Projected average of Kaley's 5 highest annual salaries at the time of her retirement is:$56,330
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Kaley's projected Standard Annual Retirement benefit (without Joint & Survivor Benefit) is:$46,641$3,887
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Estimated Annual Retirement benefit if Kaley and Matt elect a 100% Joint & Survivor benefit is:$41,529$3,461
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Discount Rate6%$426
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Cola Rate0.015
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There are assumption made in this worksheet that will affect the performance of both the TRS Joint and Survivor Benefit and projections for Pension Maximization. This is for illustration purposes only. This is not an offer, contract, or promise of future performance.
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