Continuing Education for Teachers

Continuing Education for teachers

Many teachers have a love for education, so it isn’t surprising that more than half of public school teachers continue their education beyond a bachelors degree. For most it isn’t about whether or not they should continue their education, but more so about how to pay for it. Going back to school requires a big investment, both with your time and your wallet. Before you make the commitment, you should consider these things:

Why do you want to continue your education?

If you have a love for learning and don’t want to stop, then by all means, keep going! However, most individuals continue their education with the belief that once they have completed their degree or certification, they will make more money. If this is the case for you, be sure that you research how much more your district will pay you once you have earned your new credentials. Compare this to how much continuing your education will cost you. Is it worth it?

Your Best Resources

Many educators want to move up in their careers and become principals, administrative professionals, and even superintendents. If this is you, decide what you want to do, and plan out the steps you need to get there. If you want to be a principal one day, your best resource is your current principal. Make your plans known, and they can help guide you in the right direction. After all, they have been in your shoes before.

Another great resource is your district’s Education Foundation. This is a team of people who are dedicated to helping make your job easier. They raise money with the help of the community to reward innovative teaching grants, teacher scholarships, and much more. Find your Education Foundation and use all their resources that you can – It’s free!

Paying For Continued Education

The biggest kicker when it comes to continuing your education – actually paying for it. The rule of thumb when it comes to paying for education is to look for scholarships first, grants second, and financing last. Your first step should be submitting a FAFSA application. Once completed, this will tell you whether you automatically qualify for any scholarships and grants from your school. It’s essentially free money.

Next, look for all the scholarships you can. Go back to your Education Foundation and see if they have any teacher scholarships available. Teacher.org also lists several scholarships throughout the year that are available for educators.

Once you have submitted applications for all of the scholarships and grants available to you, you can research loans. A great option is our Professional Development Loan. You can borrow up to $10,000 with a rate as low as 8.99% APR*. Remember to never borrow more than you need.

Most Importantly – Never Stop Learning

You don’t have to go back to college in order to learn more. School districts and Universities constantly offer professional development classes to their teachers – for free. Region 4 also offers many free classes for educators, and you can view their upcoming sessions here. If you are finding yourself stuck on something, find a mentor in a seasoned teacher who knows the ropes. And most importantly, once you become a seasoned teacher yourself, reach out and mentor the new teachers who are just beginning.

 

TERMS AND CONDITIONS: *APR = Annual Percentage Rate. Certain credit qualifications may apply. Member must present valid work contract, paycheck stub, or other proof of school district employment at time of loan origination. Only one classroom supplies loan may be originated at a time. No loan discounts. Payment Example: 12 monthly payments of $87.87 per $1,000 borrowed at 9.99%.

Saving For College

If you have children, it is important to save for their college education. While it is likely they may qualify for some type of financial aid, not everyone does, and tuition can be cost-prohibitive. The key to saving for college is to start early and invest wisely, earning interest whenever possible.

People often get busy or encounter unexpected circumstances that require them to forgo savings. They later find themselves scrambling to find the money they need when their child is in high school. By starting early and planning, you can ensure your child has the money they need to attend college.

 

Look into a College Saver Certificate

The College Saver certificate is an excellent place to start your child’s college saver plan. The good thing about this plan is that it’s relatively inexpensive. Just $25 gets the account started, and after the account reaches $250, your child can begin earning dividends, which can be reinvested back into the account for even more savings.

Also, the account comes loaded with special features. It renews automatically every year. It’s also possible to make as many deposits as your child likes, as the account is open to unlimited deposits.

Unlike some other college savings accounts, the College Saver Certificate does not specify the type of school your child must attend. He or she may choose college or university and still qualify. Keep in mind, however, this college saver account requires parental consent and signature as a joint owner in order to be eligible for savings and benefits.

 

Start a 529 Plan

Another option for a college saver plan is the 529 plan. These plans are state government-run and offer tax-free withdrawals for educational expenses. One of the best things about the 529 plan is the opportunity to invest after-tax money and earn investment gains. They mainly consist of diverse stocks and bonds offered at low cost to savers.

If you’re looking to invest large amounts of money at a time, this plan is a good choice. These accounts allow high contribution limits, and perhaps the best feature is that the funds are never taxed as long as they are used only for education expenses. This includes tuition, books, fees and living expenses such as room and board.

An added benefit is the Gift of College program. It allows friends and family members to assist with your college savings plan. They can easily contribute directly into the account simply by registering at the website giftofcollege.com.

It’s important to note that although the contributions to the program are tax-free, there is a 5 percent processing fee that runs up to $15 per contribution. Keep in mind, however, that 529 plan rules and regulations vary by state. Be sure to check your state laws before getting started.

 

Use your Roth IRA

Yet another college saver plan is the Roth IRA. These accounts are somewhat versatile in that they offer tax- and penalty-free withdrawals for educational expenses, but any unused money may be saved for retirement.

This a great option if you’re unsure if your child will in the future change his or her mind and decide college is no longer on the radar. This dual-purpose route also makes for an excellent option for parents whose employers offer Roth IRAs in their benefits package.

Like the College Saver Certificate, there are no requirements regarding the type of school a saver should attend. Any college or university will do. Also, like the 529 plan, it’s possible to earn investment gains and contribute after-tax money with Roth IRAs – an added plus for those looking to grow their money while saving.

Roth IRAs do have their limits, however. Funds for educational expenses can only be withdrawn penalty-free after five years of saving. Also, these accounts are subject to annual contribution limits ($5,500 annually and $6,500 annually if you’re over 50).

Be sure to check IRS rules during your pre-planning phase to ensure your regular contributions fit the contribution caps and to avoid any penalties and fees on early or non-education related withdrawals.

 

Save smart for college

Every child thinking about college needs a college saver plan. The sooner you get started saving, the better. There are some options to choose from. Each type of saver account has a number of features.

Take the time to do your homework and find a fit that’s right for your college plans and financial goals. With a little investigating, you should be able to find a college saver plan that puts you and your child ahead of the game and off to a great start for college.

Getting Your Finances In Shape

Financial health is important. Unfortunately, it is something that people tend to put off. Financial decisions directly impact your future and have a profound effect on your lifestyle. This is why it is critical to plan for expenses and save for the future.

While it can be a complicated process, it is well worth the effort to improve your financial outlook. The key to financial health is budgeting, planning and, last but not least, understanding compound interest. Some general rules can be helpful.

However, your finances are like your exercise program: You need a plan that is individually tailored for you.

 

Step 1: List All Expenses

The first step in establishing financial health is understanding your spending. All the money you pay out to cover the cost of living is an essential aspect of your financial well-being. It helps to have a handy list of where your money goes after you receive your paycheck and other income sources. Doing so makes it easier to make all the clear choices necessary to permanently get your finances in shape.

Your list should include payments toward credit cards, loans and personal debts with family or friends. It’s also essential to take note of education and health care costs, including prescription medicines and doctor visits. Insurance for vehicles and home or apartment, as well as housing expenses such as mortgage payments or rent, should also be noted.

The cost of transportation such as fuel and automobile maintenance in addition to train or bus fare is important to list, as is the cost of utilities like electricity and water bills. Food is always a necessary expense to note, but also be sure to include entertainment expenses such as dining out.

 

Step 2: Consolidate Debt

Consolidating debt is next on the list for ensuring financial health. If you’ve ever had to deal with more than one source of credit card debt, coupled with personal loans and other forms of debt, you know the struggle to keep all the necessary details of repayment organized and ongoing.

With consolidation, you have the chance to place all your debt under one roof and move forward with your day-to-day life. You can consolidate all forms of debt. To get started, you should first visit with your credit union and get a copy of your free credit report. They can sit down with you (for free!) and give you tips on how to improve your credit score.

The key is to get the lowest interest rate possible. If you are paying 18.00% interest on several credit cards, it may be wise to consolidate those to a personal loan with a lower interest rate. If you have a solid plan for paying back your debt, you can even look for 0% interest balance transfer specials to save you money.

Another great option is to use the equity built up in your home. A home equity loan is a great resource for consolidating debt. Because it is secured loan, the interest rates are lower than you would find on a personal loan. The terms can even be extended up to 20 years to give you a lower monthly payment to help you budget better.

 

Step 3: Cut Unnecessary Spending

Next, it’s time to address spending. Unnecessary spending can plague any financial health plan. That’s why it’s best to take an honest look at those extra expenses that you can eliminate to reach your financial goals.

Our modern times mean there are all sorts of new avenues for unnecessary spending, including eating out, music and movie subscriptions, luxury vehicles, hotel staycations, international vacations and more. These types of expenditures are discretionary and never necessary. This perspective keeps your financial plan flexible and efficient.

 

Step 4: Save

Finally, successful financial health requires an excellent savings plan. Whether you’re saving for retirement, travel or education, you’ll need to take the time to develop a plan with effective and sound financial strategies.

If you haven’t already, check with your employer about ways to save with your retirement contributions. Often, reorganizing your benefits plan can save a few more dollars each paycheck, which over time amounts to even bigger savings than expected.

At Gulf Coast Educators, we offer our members a My Savings Goal account. This account allows you to make monthly deposits while earning a higher dividend. It disperses the funds twice a year, in January and July.

Using coupons and even carpooling are just a few practical methods people use to save, and investing in financial instruments such as money market accounts that help earn compound interest often yields big savings over time with little effort.

All in all, it’s important to remember the key strategy for any successful savings plan – pay yourself first.

 

Get Your Finances In Shape

Financial stability is the ultimate goal whether you’re earning a lot or a little. To get there, put together a financial health plan that addresses all aspects of your current financial situation, including expenses, debt, spending and savings.

Although there is a wide range of financial advice available, strive to find a financial plan that works best for your unique way of approaching your short-term and long-term financial goals.

Buying A House On A Teacher’s Salary

Buying a house is perhaps one of the best investments you can make, but it does take some preparation. A good credit score and an appropriate down payment make the process easier and more affordable. It is important to plan accordingly for your big purchase by improving your credit score and saving for a down payment.

Buying a house on a teacher’s salary is totally possible with budgeting and planning. It is also important to get pre-approved for a home loan before shopping, so you know how much house you can afford.

 

Down Payment

Considering how much you can afford to pay as a down payment for the purchase of your home is also important. With down payments, the general rule is always the same: Bigger is better. In other words, the bigger the down payment you can make, the easier it will be on your pocketbook. This is because more down equals lower payments.

If you put down at least 20%, you can avoid paying Private Mortgage Insurance (PMI). If you put down less than 20%, you will be required to pay PMI each month, which generally costs 0.5% to 1% of your entire loan amount. This means that for a $100,000 loan, you could pay as much as $1,000 extra a year, or an additional $83.33 per month.

Also worthy of note is the fact that down payments must come from nonborrowed funds. Since you won’t be able to finance your down payment, be sure you have a savings plan in place. It’s wise to consider an automated savings plan that can be deducted straight from your paycheck and funneled into an interest-bearing savings account.

 

Credit Score

Next to consider is your credit score. You simply cannot get most home loans without at least a good (or consistently improving) credit score. Banks and credit unions alike use it to measure your personal financial health.

You’ll first need to find out what your credit score is, and decide from there how to raise it, if necessary. Ideally, home loans require scores above 700 to qualify. You can always visit your credit union for a copy of your free credit report, and they can give you tips on how to improve your score.

Although it may seem taxing, it’s good to focus on the highest credit score you can muster. Higher scores equal lower interest payments, and good credit buys more home.

 

Teacher Mortgage Program

There are some financing programs available to assist teachers specifically in the homeownership process. These programs often take into consideration the special circumstance involved in buying a house on a teacher’s salary and have designed their terms to specifically address these.

For instance, with a Gulf Coast Educators FCU Educator Mortgage, you can finance your new home up to 103%, with no down payment or PMI required.

 

Homeowner’s Insurance

When calculating how much house you can truly afford, be sure to leave room for homeowner’s insurance. This is an expense that’s included in monthly payments, so it’s important to get the numbers to fit your monthly budget without compromising quality.

It’s added into your monthly payment, so it should also be figured into your overall calculations to determine maximum affordability on a month-to-month basis. This is yet another reason to select lenders with special financing programs available to assist teachers with the purchase of a home.

 

Buy a House on a Teacher’s Salary

From checking your credit score to saving for a down payment, there are some steps you can take today to ensure that buying a house on a teacher’s salary is not the impossible endeavor it sounds like it could be.

Take some time to assess the kind of payments you can afford, and work from there. Also, be sure to take advantage of any special financing programs available specifically to teachers. In the end, you may be surprised how easy buying a house on a teacher’s salary can be.

Helping Your Child Apply For Scholarships

Helping your child apply for scholarships begins with becoming an informed parent. There are numerous resources available to students looking to continue their academic pursuits into college, and these may be difficult to navigate as a busy high school student. Your child will need your help to find the best opportunities available to them.

 

Start with the FASFA

The FAFSA (Free Application for Federal Student Aid) is the pivotal step toward securing scholarships for college tuition. This determines whether you qualify for scholarships or grants from the government, and even offers low interest loans. The key is to fill the document out as early as possible. To do this, you’ll need a unique identifier known as the FSA ID. The identity key is unique to each FAFSA applicant, and it helps keep all you do concerning your FAFSA application safe and secure.

Once a student receives an FSA ID, he or she will need to create a save key so that the ID can be kept online without interference from hackers or other privacy violations. Use your child’s information such as social security number, address and name to complete the process.

Keep in mind that additional documentation may be required to complete the FAFSA. This may include transcripts, proof of financial status, GPA documentation and more. Stay within the guidelines on these additional documents and pay close attention to any special FAFSA deadlines for best results.

 

Finding Scholarships

Once you’ve finished your child’s FAFSA application, it’s time to turn your attention to the scholarship application process. This process can be intense, but it doesn’t have to be. Parents often stress they don’t know where to begin when looking for scholarships for their children’s college education, but there are a number of sure resources.

  • It’s always wise to begin with your employer. Often the entities we work for provide scholarships.
  • As a member of Gulf Coast Educators FCU, your child may qualify for our GCEFCU Scholarship.
  • Scholarship search engines, such as Scholarships.com.
  • If you’ve attended college or high school, check with your alumni organization to inquire whether they offer scholarships.
  • Your child’s school counselor can provide them with many scholarship options available. Advisors and counselors and teachers are an excellent resource for insight into the college scholarship application process. Start with the school’s counseling office to get pointed in the right direction.

It may take some time to sift through these, but it’s worth it. Often, the criteria for applying can range from very narrow and specific, to very broad and open. Be sure to take note of any special requirements or specifics during your search. Also, deadlines are important. Keep track of deadlines by keeping a calendar organized specifically to track due dates and timelines for each of your child’s scholarship applications.

 

What Scholarship Committees Look For

Chief decision-making in any scholarship application process lies with the scholarship committee. These committees can range in size and makeup across the wide variety of scholarship applications available, but there are a few general things that most committees look for in the ideal candidate.

  • Attention to detail – This means following application instructions with special care and diligence.
  • Demonstrations of moral integrity – What makes you worthy?
  • Internships or volunteer organizations that your child has taken part in.
  • Organization – Be careful to ensure that your child’s personal statement displays complete thoughts and sound sentence structure. It is wise to have your student’s English teacher proof read their essays before they submit them.

 

From Teacher to Millionaire in 3 Steps

Becoming a millionaire can be more than just a pipedream, even on a teacher’s salary. Some people do have the good fortune to win the lottery; but for most, those chances are slim. If you want to be a millionaire, it really boils down to two things: commitment and strategy.

First, you must transform your perception and redefine your goals. Only with the proper mindset can your aspirations of becoming a millionaire can come to fruition. You’ve got to make it your number one goal and then formulate a plan to make it happen.

Teachers are typically strong in the planning department, but amassing wealth sometimes takes an extra push. After all, if it were easy, then everyone would be a millionaire. Here are three easy steps to get you from teacher to millionaire by retirement.

Invest in 403b

Teachers and other public sector employees are usually given the option to invest in a 403b plan. These are tax-deferred retirement savings plans that employers often match. Some of the biggest benefits of investing in a 403b plan are that the contributions are tax-deductible and the savings grow tax-free.

Since you pay taxes on distributions in retirement, many end up in a lower tax bracket before its time to pay Uncle Sam. For instance, socking away $10,000 per year for 20 years will give you $200,000. However, properly allocated plans tend to generate an average of about 7 percent return annually.

If your employer matches just 3 percent, which many do, you’ll end up with $436,540. That’s almost half a million right there.

Invest in IRAs

The road to wealth is a much shorter trip with multiple savings plans. You can easily get half way to the millionaire mark with your 403b plan. An alternative IRA, specifically a Gulf Coast Educator’s Federal Credit Union’s Premium Market IRA, will take you the rest of the way.

This tax-privileged savings plan earns a higher dividend than other plans and doesn’t charge administrative fees. You can choose from a traditional or a Roth IRA, depending on your specific strategy.

Depositing a little less than $11 per day into an IRA will grow to a million dollars in 40 years. This amounts to little more than a snack and a cup of coffee, and it still doesn’t max out the contribution limit for the year.

Invest Even More!

Compounding interest is a beautiful thing in the world of finance, especially if you’re trying to build wealth. It basically amounts to earning interest on interest. For example, suppose you invest $1,000 into an account earning 10 percent simple interest. At the end of 10 years, that account will be worth $2,000.

However, suppose you invested that same $1,000 into an account earning 10 percent compounding interest. At the end of the same 10 years, that account will be worth $2,594.

When building wealth, you want to opt for investment accounts that offer compounding interest whenever possible. You’ll earn more money in a shorter period of time, meaning you may get to millionaire status even before retirement.

Telemarketers Prey on Seniors

Jamieson Mackay

Jamieson Mackay, Certified Credit Union Financial Counselor

My mother called me recently to tell me that she had signed up for an extended vehicle protection plan that she thought was only $200 (first red flag: if it sounds too good to be true it is). A sales agent had called her and she agreed over the phone and gave her credit card information. She has since come to find out that the plan was $200 a month until it was paid off, totaling about $3,000. She knew better, but said she felt pressured and did it to get off the phone (second red flag: never give your payment information out over the phone unless you initiated the call). This is a common issue we hear about with our senior members and unfortunately sales people prey on the trusting nature of seniors.

The main problem in this case is that my mother had a stroke a year ago and hasn’t been driving, which means she was sold something she didn’t even need. We always reinforce the idea with our team members that we won’t sell something the member doesn’t need and only recommend things that will improve our members’ financial lives (see our service promises). Too many businesses out there don’t adhere to the same ideals and find seniors, such as my mom, an easy sale.

I have a power of attorney for mom to handle certain things for her, so I called the company and was put in touch with a supervisor who gave me cancellation instructions. Hopefully this is the last I write about this specific incident, but there are several take a ways that this example reinforces:

  • We must look out for our senior family members. My mom is a smart lady who I never thought would have done this. She usually calls me to discuss decisions like this. She felt really badly about the whole thing, but I assured her it was ok and that it was taken care of. Basically, we can’t make assumptions that our older family and friends won’t do these types of things.
  • A power of attorney (POA) can be a valuable instrument in helping our aging family members take care of financial and other issues. Without the POA, I would not have been able to help mom in this case. She would have had to deal with the entire issue herself, which would have been even worse and added to the bad feelings she already had from this instance.
  • Never give out payment information over the phone if you didn’t initiate the call. If someone calls you and you are interested in their product or charity, ask where you can pay online or where you can call back after checking into the business or charity further. We’ve seen too many incidents where members have been scammed into giving their payment information over the phone to scammers, businesses and fake charities.

In this case it was a legitimate product that was sold, but in a manner that I find repulsive. The sales person that sold this to my mom is the type that gives sales people a bad name.

Retirement Strategies That Work

Whether you are close to retirement age, or just starting out in your career, having a strong retirement plan is essential to a financially-stable retirement. Let’s review a few key strategies to get your started.
Invest a Consistent Amount Each Month. With this strategy, you may want to consider automatically contributing to your IRA or other retirement account with every paycheck (up to the maximum annual contribution allowed).
Plan for Retirement Adjustments. It is important that you plan for adjustments to your income after retirement. While some of your retirement income will likely be a fixed amount each month, you will also have some retirement accounts that will pay out varying amounts based on market performance. If possible, try to funnel your monthly retirement costs toward the retirement payments that are not variable. This will allow you some flexibility in good times as well as security and peace of mind when times may get rough.
Control Your Plan. Too many people cede control of their entire retirement plan to someone they don’t know really well, and more importantly, who may not know them. Be an active participant in your investment plan. Ask questions. Go to every seminar or webinar you can find, especially if it is tied to your employment. It’s never a bad idea to remain educated.
As you take the time to get involved in your retirement planning and develop strategies that benefit you and your family, you will start to see a brighter future. If you would like to learn more about the different retirement accounts and options available to you at Gulf Coast Educators, you can click here or call 281-487-9333 to speak to one of our financial advisors.
Sources:

  1. http://www.thestreet.com/story/13269223/1/here-are-the-3-most-effective-retirement-strategies.html
  2. http://www.investopedia.com/articles/retirement/09/counterintuitive-retirement-strategies.asp?header_alt=c

 

Cyber Security Awareness

October is National Cyber Security Awareness Month.

No such thing as too much security when it comes to online

Michael Barry GCEFCU Security Officer

Michael Barry
GCEFCU Security Officer

“Why do we have to have all those security questions and passwords on our accounts?” A question we get asked all the time. “It’s so time consuming and we have so many passwords to remember.” Yes, we know. “What’s the big deal?”

Well, you may think it’s all a hassle… until you get hacked. If you aren’t utilizing all the security features available and don’t keep your anti-virus software up to date, then you may be a prime target for attackers. And these “hackers” may not be in some foreign country across the world. They might be as close as a next door neighbor, or even a relative.

How many of you have a wireless network at home that isn’t password protected? Not sure? I bet your neighbors know. It’s so easy for someone to drive by and see what wireless signals that can be picked up and accessed. Check with your Internet Service Provider to make sure that your internet router is password protected so hackers can’t tap into your home network and access your personal files.

So your internet is secure, now what? Do you have an antivirus program on your desktop or laptop? And more importantly, is it up to date? Hackers can put all sorts of Trojans and viruses on your computer to capture data while you are typing and send it to a third party. Make sure you have an anti-virus program and malware program that can prevent, detect and eliminate any threats. Don’t have money to buy a program? Search online, there are many free anti-virus programs and malware programs available.

So, internet secure, anti-virus program up and running, what’s next? What about your passwords? Are those secure? Make sure you aren’t using easily identifiable information (birthdays, anniversaries, pets name, the word “password”) These passwords are the first guessed, along with any other information you may have in a public profile on a social website account. Choose phrases that don’t go together, like “dog sleep loud date.” Add spaces, uppercase letters and special characters. Secure, for example could become “S3cuR3.” Pick a long phrase and choose the first letter of every word. The cow jumped over the moon and the dish ran away with the spoon could become a password of “Tcj0tmatDrawtS.” Change passwords regularly and don’t increment the last character or number by 1. I know that’s easy to do, but if it’s easy for you, it’s easy for a hacker.

Setup login notifications. Did you know that the credit union can alert you to over 15 different events? (And that’s just events, by the way, I didn’t include account specific alerts or reminders) We can tell you if your account has been locked out, your PIN changed, you logged in outside the US, a specific state, city or even if you log in from another IP Address. Check out all the alerts we can send you through text, email and secure messages from online banking. After logging in, choose Accounts, then Account Alerts from the drop down menu. Perhaps you want to create an alternate login for your account, so you aren’t typing in your member number. You can do that by selecting Member Info under Options. Want to change your authentication questions, maybe create your own? Try Options, then Authentication Questions.

Some other easy things to remember… don’t share your password… to anyone, kids included. I know we all think our kids can do no harm, but it turns out a lot of fraud is initiated by someone you know. Be very careful when using Internet cafes or public internet access. None of that is secure, and if you start logging into your account, someone could easily be “watching” everything you do. If you must use one of these free internet services (hotel, airport, restaurants) don’t do anything you wouldn’t want someone else to see. Make sure you log out of any account you are logged into and close all your browser windows. Don’t have your browser remember any account passwords for you. It may be easy for you, but it’s also easy for anyone that may get a hold of your laptop, tablet or desktop.

With so many new technologies available, security is something that we should all be concerned with. I don’t want to scare you away from anything, but you should always make sure you are staying up to date with security and using any security features that are available to you. If you would like help setting up additional security on your online credit union account, give us a call, we’d be happy to help!