Teachers Retirement System: Understanding TRS of Texas - Avoiding THE crucial mistake most teacher retirees make.

So what is THE crucial mistake teachers nearing retirement make? Its waiting too long to begin the retirement process.

As a financial advisor working with teachers in El Paso, Texas, I often have to tell teachers that are ready to retire that they will have to postpone their retirement at least for a few months. The reason for this is that their will be a delay between the TRS process being completed and their last check, leaving them with a month or more of no income.

In my experience, it takes at least 3 months and often as long as 6 months for all of the TRS paperwork to be requested, received, completed, and submitted. In fact, even the official TRS website recommends members contact TRS 6 months prior to their anticipated retirement date.

Therefore, the steps that I recommend in preparing for retirement are:

1.      Visit http://www.trs.state.tx.us/

2.      Read over the TRS benefits Handbook

3.      Download form TRS 18 and return it to TRS to receive your retirement packet

4.      This step is optional, but I highly recommend setting up an appointment with a financial advisor specializing in TRS retirement. Such an advisor will help you in completing all of the applicable paperwork, and more importantly, assist you in understanding all of the options offered by TRS. This advisor will also be able to guide you as to the best route to take in dealing with your 403(b).