How Sagewell Helped a Teacher Plan for a Large Retirement Expense

by: Jocelyn | in 403(b), Education, Retirement, Teachers

Julie*, 60, a former teacher from Nashville, retired last year after hitting her savings goal of $300,000 in her 403(b).

Since retiring, Julie has been living comfortably off her Social Security payments along with a $1,000 monthly withdrawal from her 403(b).

Preparing for a large medical expense

While Julie felt confident she had what she needed to retire early, she started to talk with friends and family who had retired and quickly realized she was not prepared for a large unexpected medical expense. Her friends told her horror stories of medical expenses of $100k or more, and Julie wanted to make sure she was prepared. 

Julie’s 403(b) plan would be out of money earlier than she expected

So, she began to work through the numbers. Looking into her current 403(b) plan Julie quickly realized she was not as prepared as she thought she was.

With her current 403(b) charging her a 3% fee monthly, factoring in annual inflation and her monthly $1,000 withdrawals to help with expenses, she would be out of money at an earlier age than she expected, especially if she had a large medical expense like her friends were warning her about.

That’s where Sagewell came in

That’s where Sagewell came in. With Sagewell’s much lower monthly fee and savings program, Julie realized she would be in a much better situation. With a fee of only .5% with a Sagewell IRA vs the 3% she was paying now on her 403(b), she would be in a drastically better position. 

A free Sagewell Retirement Advocate mapped out two scenarios, one with Sagewell vs. one without, helping her see what it would look like if she had her normal monthly withdrawal, and 26 years from now if she were hit that big $100k medical expense she was worried about. 

The results were striking. Leveraging Sagewell for monthly savings of $100 from cashback, renegotiated monthly bills and more plus drastically reduced fees made a difference that really compounded. Additionally, Sagewell helps its members negotiate large medical bills with an average reduction of 65%. So that added in another reduction, from $100k to $50k for that one time medical expense. 

With all the figures in, and assuming 6% market returns, with Sagewell Julie still had $410k in her 403(b) – it had actually grown! – but with her current plan she faced a $129k debt. She couldn’t believe the difference.

Helping teachers like Julie is why we built Sagewell – reach out today for a free consultation with one of our Retirement Advocates. We are passionate about helping teachers just like you!

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*Julie’s story is an amalgamation of stories from Sagewell members. We have thousands of members just like you, who are retired and looking to ensure financial security while retired.

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