How We Saved over $64,000 in 12 Months on 2 Teaching Salaries…in a Down Economy…without Breaking the Law!

In May of 2009, my wife and I had a tough career decision to make.  Because we both felt that we needed a change of scenery, we decided that we could either take a year off from teaching or seek a new job in another school district.  Taking a year off would have required us to spend down our savings and tap our HELOC and 457 accounts.  Instead of spending our hard-earned assets or borrowing against our home, we decided to take a teaching job in Echols County, Georgia.  Like my previous employer Troup County Schools, the Echols County School System offered both 403b and 457 retirement accounts.  These accounts, along with our traditional IRA accounts at Vanguard, are our primary retirement savings accounts.  An added benefit of working at ECS is that the district has its own 403a retirement plan; it is funded by a 5.24% employer contribution.  Here are the amounts that we saved over the course of 2009: 

Retirement Accounts	Self	Wife	Total
457 at TCSS	$14,360	$14,796	$29,158
403b at TCSS	$3,156	$0	$3,156
457 at ECS	$2,140	$1,704	$3,844
403b at ECS	$6,922	$6,922	$13,844
Traditional IRA	$5,000	$5,000	$10,000
403b pension at ECS	$1,105	$1,035	$2,135
Total 2009 Retirement Savings	$32,683	$29,457	$62,135

            In addition to our retirement savings, we also fund a Coverdale ESA for our son.  We have fully funded this account since he was born in 2006.  We also fund our son’s GA 529 plan to the tune of $300 a year.  Finally, we have six nephews and nieces who get $25 contributions at Christmas and on their birthdays; these results in $600 of contributions a year.  Here is breakdown of our educational savings accounts:   

Educational Accounts	Son	Nephews & Nieces	Total
Coverdale ESA	$2,000	$0	$2,000
GA 529	$300	$300	$600
Total 2009 Educational Savings	$2,300	$300	$2,600

           

            In spite of working in what many consider to be a low-paying field, we manage to do quite well working as teachers.  Here is the grand total for 2009:

Accounts	2009 Totals
2009 Retirement Savings	$62,135
2009 Educational Savings	$2,600
Total 2009 Savings	$64,735