Can a teacher give up her lucrative side hustle?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
OP here. I created an LLC for tutoring. It is all word of mouth. I work nights when I get home from school and on weekends. I work 20-25 hours a week. |
Anonymous
OP here. Terrific ideas. Thank you. |
Anonymous
OP here. All of the personal financial numbers are accurate. I am pretty sure that the pension is accurate but it may be closer to 65 percent instead of 70 percent. |
Anonymous
I'll take you at your word. Can you share what jurisdiction? The best a MoCo teacher hired in the last 15 years or so will do is about 45% with 30 years of service. |
Anonymous
OP here. I’m not comfortable sharing the exact district. I work in NOVA. I do not know anything about Maryland pensions. |
Anonymous
It's a matter of public record. VA teachers participate in VRS: the VA state retirement system If they were hired in 2010, their pension after 30 years service would would be 1.7 x 30 = 51% https://www.varetire.org/pdf/publications/vrs-plan1-overview.pdf In the MD state Retirement system, someone hired in 2010 with 30 years service would get 1.8 x 30 = 54% https://sra.maryland.gov/sites/main/files/file-attachments/benefithandbook_teachers_acps.pdf?1621263748 OP must work for a school district that has a supplemental retirement plan, such as Fairfax County. They have an additional mandatory contribution plan which will provide another 0.8% per year to the pension after 30 years. Which brings the pension to 2.5 x 30 = 70% for Fairfax County MoCo also has such an additional pension supplement. It is an additional .2 for every year of service if you have worked 30 years, bringing the total pension to 2.0 x 30 = 60% for MOCO https://www2.montgomeryschoolsmd.org/siteassets/district/departments/ersc/employees/retirement-planning/understanding_your_retirement.pdf |
Anonymous
|
Why would OP lie about her income on a thread where she asks whether she can afford to reduce that same income?
That poster must be very jealous... 
|
Anonymous
|
Here's the link for Fairfax's supplemental pension plan, Tier 1
https://www.fcps.edu/node/43958
|
Anonymous
| Troll |
Anonymous
Don't do that. Raise your rates. Your hours might go down. Your pay may not. |
Anonymous
| I'd say keep it up if you plan on being a single mom. I'm one and a teacher too. Kids are $$$$$$$$$$$. |
Anonymous
|
The answer depends on your anticipated expenses upon retirement, and the extent to which the combination of your expected pension and income from your taxable and tax-sheltered investments will meet or exceed those expenses. Your expense calculation probably should include some consideration for long-term care, should it become necessary at some point, and should take taxes into account, to the extent those can be predicted with any confidence this far in advance.
You can use one of the many available on-line retirement planning calculators to predict the likely size of your future investment portfolio with and without your part-time income, or with some alternate possible income if you choose to cut back but not eliminate your part-time work. |
Anonymous
either a Troll or got the money from someone. |
Anonymous
| Serious question...my mother was a teacher, and she spent nights grading papers or doing lesson plans. How do you do the side tutoring during weeknights? Do you not need to do prep for the school day? |
Anonymous
|
Are you a masters plus 30? It's easy to achieve if you aren't and it adds 3,000 on a year - in the long run in makes a big difference. And is the phd level also considered a masters plus 60? (In MCPS it is).
I am a single mom by choice and I was like you, working nights and weekends. It is a grind and I was relieved to cut down my hours. I did so when I was at your salary level. Money wise it seems like you are in a position where you can cut back. |