| Q |
I am a school board employee. I currently
save money for retirement in my credit union savings account. Is their a
better way to save? |
| A |
Congratulations on saving! Saving
money in your credit union is fine for short term needs or for a liquid
reserve. However, you would be much better off participating in a TSA
plan available through your employer. You should also consider
starting a Roth IRA. |
| Q |
I have a traditional IRA. Should I convert
it to a Roth IRA? |
| A |
Yes. However, there are restrictions on your
ability to convert to a Roth IRA. Your adjusted gross income needs to be
less than $100,000 in the year of conversion. In addition you need to
remember that the amount you convert will be taxable for that tax year. |
| Q |
I am a 35 year old educator. Should I
count on Social Security to provide me an retirement income? |
| A |
Good question. Social Security is a social
program that is probably will be around for your retirement. However, we
do not know exactly what form it will take. Your best bet is not to count
on social security in the planning process. If you receive a retirement
income from Social Security it would be a bonus. |
| Q |
I am an employee with the Broward County
School Board. Should I consider participating in the DROP Program? |
| A |
Yes!!! The DROP Program is a win-win
situation for an eligible employee. If you participate in the DROP Program
for the maximum five year term you stand to gain a significant retirement
bonus. The amounts available often exceed $100,000. |
| Q |
What are my options when I terminate from
DROP? |
| A |
You may take the entire amount in cash.
However, any amount you receive in cash will be subject to income tax. The
other option you have is to rollover the money in your DROP account to an
IRA. |
