The Dream of Retirement
By Randy Logan, CLU, ChFC
WEA Tax Sheltered Annuity Trust
Investing now can help make it come true
We all dream of retirement. Images of ocean sunsets and rolling fairways
fill our minds. Finally, we’ll have time to garden, travel, or read
the latest best seller. For those who plan early, these dreams can become
a reality. For those who don’t, they will remain only that —
dreams. Whether you are 30 or 50 years old, if you want a secure, comfortable
retirement, you need to start preparing now.
If you don’t know where to begin, or if you need more information
about what to do, your WEA Tax Sheltered Annuity Trust (TSA Trust) can
help. The TSA Trust was created by WEAC to give its members a viable alternative
to higher-cost, commercial tax-sheltered annuities (TSAs). As a member
benefit, the TSA Trust offers comprehensive financial programs and services
tailored to your needs.
The TSA Trust has grown to become the largest TSA program in Wisconsin’s
public schools. And, as a popular commercial says, membership has its
rewards. As more of you have elected to participate, the TSA Trust has
leveraged the collective buying power of the group to improve benefits
and reduce costs for its participants.
Due to this leverage, the TSA Trust recently announced a fee reduction
effective January 1, 1998. The WEA TSA Trust has no front-end fees, no
contribution fees, no mortality expense charge, no surrender penalty or
withdrawal fee, and no back-end loads. What this means is that you can
be assured your money will work harder for you — and when you retire,
you need not be concerned about waiting for your money or timing your
withdrawals to avoid surrender penalties.
The TSA Trust staff can help you discover what it will take for you to
bridge your “retirement income gap” and make your dreams a reality.
So, if you would like to retire early or simply assure financial security
for yourself and your loved ones throughout your retirement years, give
the TSA Trust a call at 1-800-279-4030. You can speak with a retirement
consultant to get answers to your questions about retirement, or to simply
learn more about tax-sheltered annuities.
The dilemma of long-term care
Ask yourself these questions: “If something happens to me so that
I’m unable to do everyday activities that I now take for granted
(such as eating or taking a shower), do I have friends or family members
who can help me with those things? Are those people available whenever
I need them to help? If friends or family can’t help, can I afford
to hire someone?”
Or to turn the questions around, if you’re married, would you be
able to take care of your spouse on a daily basis if something happened
to him or her? For most of us, the answers to such questions aren’t
easy. You may want to take care of your spouse, for example, but that
may not be possible. You may need to stay employed to pay your bills and
take care of your kids. Or, your spouse may need special care that can
only be provided by a registered nurse. Which means you must either hire
someone to come to your home or to take your spouse somewhere to be cared
for while you work. Either way, such care is expensive — about $3,000
a month.
It’s true that most people are not going to need long-term care
until later in life. Still, 40% of those who need it are working-age adults
and 3% are children under 18. Almost none of these people have protection
against the staggering costs of paying for such care. Unfortunately, neither
do the 57% of those who are 65 or older.
You may be asking yourself: Doesn’t my group health insurance cover
this type of care? No. Health insurance policies don’t cover long-term
care. But, what about Medicare or Medicaid? Sorry. The simple truth is:
There is very little financial assistance available to pay for long-term
care. Sure, Medicaid does pay for some, but only if you practically have
no money of your own and then only if you are residing in a nursing home.
Otherwise, the brunt of costs are borne by those who need long-term care
and their families.
Group plans and individual policies
If you have financial assets to protect, you may want to consider long-term
care (LTC) insurance. WEAC’s insurance program has both group and
individual plans that offer protection against the cost of long-term care.
The group plan is the most economical way for school employees to get
LTC coverage. A number of school districts in the state have already purchased
group LTC protection for their employees through WEA Insurance. And, while
the group plan covers you and your spouse and is far less expensive than
an individual plan, a group plan must be bargained in your district by
your local. If you want more information on the group plan, call 1-800-279-4000.
If your district does not have group LTC coverage, the WEAC Member Benefit
Trust now offers an individual plan for you and your spouse. This plan
can also be purchased to cover your parents and minor children, and it
is even available to those covered by the group plan. For more information,
call 1-800-232-6632.
Randy Logan is a retirement consultant at the WEA TSA Trust.
February 5, 1998