FAQs
FAQ Enhancements From the Deck
How much should I be contributing to my 403(b)?
Experts suggest contributing 15% of your income to help cover the gap your pension doesn’t. If that’s too high, start with 5–10% and increase 1–2% each year. You can begin with as little as $100/month.
Can I access my 403(b) early?
Yes, but withdrawing before age 59½ usually results in an IRS penalty. There may be exceptions based on your employer or provider, which we can review together.
What’s the Defined Benefit Supplement (DBS)?
It’s an extra benefit from CalSTRS that builds over time. After leaving LAUSD, you may be able to roll it into a 403(b) or insurance-based product — and in some cases, qualify for a bonus.
What is the difference between CalSTRS and CalPERS?
CalSTRS covers most California teachers and education professionals, while CalPERS covers many public employees, including some school staff. Both are defined-benefit pension systems, but they use different formulas, rules, and retirement ages. I help you understand which system you’re in and how it affects your future income.
How much of my salary will my pension replace when I retire?
Most educators receive 50–60% of their final salary from their pension, depending on service credit, age at retirement, and your final compensation. This means most people will need additional savings—like a 403(b) or 457(b)—to fill the income gap. A pension walkthrough helps you estimate your exact number.
Compliance Disclaimer Reinforcement
How do you get paid if there are no fees?
When you use insurance-based strategies, the provider pays me — not you. I don’t charge you directly. There are no management fees, and I don’t take a cut of your retirement. If there’s a product involved, I’ll explain everything up front.
Do I still get Social Security if I have CalSTRS?
Many CalSTRS members are affected by WEP/GPO, which can reduce or eliminate Social Security benefits. This can impact your own benefit as well as spousal or survivor benefits. I help you understand how these rules apply to your situation and how to plan accordingly.
How do I know if my 403(b) is good or bad?
A strong 403(b) should have transparent fees, clear growth potential, and a strategy aligned with your retirement goals. Warning signs of a bad plan include high fees, unclear investments, or poor performance. A simple 403(b) review can show whether your plan is helping or hurting your retirement.
What happens to my 403(b) if I change districts or leave my job?
Your 403(b) stays yours. You can leave it where it is, roll it into a new 403(b), transfer it to a 457(b), or move it to an IRA. Some options lower fees or offer more flexibility, while others may not. I help you compare all your choices so you can make the smartest move.