California Educator

December/January 2021

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L I K E M O S T E D U C A T O R S , you're super busy juggling school and teaching with life on the home front. You barely have time to think about dinner, much less what's coming up 10, 20, 30 years from now. So when you start getting emails or calls from financial firms mentioning they have the perfect plan for your retire- ment savings, you think sure, one less thing to worry about — sign me up now. But hold on! Many plans offered by outside vendors end up charging high fees and commissions over time that can add up to thousands of dollars of your hard-earned money. And about 70 percent of these plans include surrender fees that lock up your savings. To help you build a secure financial future and avoid such predatory tactics, CTA has developed a custom 403(b) Retirement Savings Plan (RSP) for members. The plan has low fees, and there are no commissions or surrender charges. CTA oversees the plan, built specifically for educators, and partners with service providers that have been vetted for quality and service. As with all 403(b) plans, CTA's RSP is available through your district as your contributions are deducted from your paycheck. " You spend your career helping students plan for their future," says CTA President E. Toby Boyd. "CTA wants to help you plan for yours. We think every California teacher has the right to a high-quality, low-cost retirement plan." Employees of nonprofits like schools can participate in 403(b) plans to save money for retirement. Most educators don't qualify for Social Security benefits, and CalSTRS and CalPERS pensions potentially only cover a part of what is needed during retirement, so saving in a 403(b) is important. Currently, over a thousand educators participate in CTA's RSP. Some moved funds from a former 403(b) to the RSP to save on fees, and others started in the plan as new savers. CTA's Retirement Savings Plan includes: • High-quality investments monitored by RVK, one of the largest independent and employee-owned invest- ment consulting firms in the country. Many investments offered are institutionally priced (reserved for large inves- tors versus an individual retail price). RVK reviews each fund's performance, fees and stability. RVK also has a "no conflicts of interest" business model where their only revenue comes from their clients (CTA in this case). • No commissions or commissioned salespeople. All plan representatives and enrollment support pro- fessionals offered through Prudent Investor Advisors are salaried. • Responsibility. CTA follows fiduciary standards that ensure all recommendations and decisions are made solely in your best interest. CTA, RVK and Prudent act as fiduciaries, meaning you may not need to spend money on a financial adviser to help manage your retire- ment plan. • Low transparent fees. There are no hidden fees, and the plan is designed to keep administrative and invest- ment management costs low. • CTA endorsement. The plan is the only one that is built for and endorsed by CTA. CTA's high-quality, low-cost Retirement Savings Plan is built specifically for you How to Build a Secure Financial Future Photo: Fabian Blank / Unsplash 56 CTA & You

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