Why do so many 403(b) plans get a bad reputation?

In this episode of the Washington State Retirement Planning Podcast, we break down some of the biggest problems to watch for when choosing a 403(b) plan as a Washington State employee, especially if you're a teacher or work for a school district.

We discuss why some 403(b) plans are built around annuities, how surrender charges can lock up your money for years, and how limited investment choices, proprietary funds, and additional fees can impact your retirement savings. We also explain why simply seeing a provider on your employer's approved list doesn't necessarily tell you whether the plan is a good fit.

Then we shift to the other side of the equation: how to maximize your Plan 3 defined contribution account. We walk through the investment options available, including the Washington State Investment Board funds, self-directed options, cash and bond funds, large-cap, small-cap, and international investments.

Finally, we discuss the importance of balancing growth and protection as you approach retirement—and why taking too much investment risk with money you'll soon depend on for income can have a major impact on your retirement plans.

00:00 Why 403(b) Plans Can Suck

01:53 Common 403(b) Problems

03:41 Annuities & Surrender Charges

05:48 How to Maximize Your Plan 3

07:33 Your Investment Options

09:07 Choosing the Right Funds

12:42 Protecting Your Money Near Retirement

13:18 Final Thoughts

Links

1. ⁠⁠Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

Free Washington Retirement Planning Community and Courses

Should you use a Roth 403(b) instead of a traditional pre-tax 403(b)?

In this episode of the Washington State Retirement Planning Podcast, we break down how a Roth 403(b) works and why it can be one of the most underutilized retirement benefits available to Washington State employees.

We explain the difference between contributing pre-tax and after-tax money, why a Roth 403(b) can provide tax-free growth and tax-free qualified withdrawals, and why it's important to evaluate your tax situation each year instead of automatically choosing pre-tax contributions.

We also cover an important distinction that many employees overlook: the Roth 403(b) is just the account structure - what you invest in inside the account matters too. Different plans can have very different investment choices, fees, annuities, and levels of flexibility.

Later in the episode, we answer a listener question about how many years of service you should have before retiring. We explain why 27 years doesn't automatically qualify you for full benefits, why 30 years can be an important milestone, and the tradeoffs that come with retiring early, including permanent pension reductions, healthcare costs, and the need to make your retirement savings last longer.

If you're a Washington State employee trying to decide between Roth and pre-tax retirement savings or wondering when you can realistically retire, this episode will help you understand the key considerations.

00:00 Roth 403(b) explained

02:14 How a Roth 403(b) works

03:08 Roth 403(b) contribution limits and income rules

04:07 Why the investment inside your Roth 403(b) matters

05:09 Listener question: How many years should you work before retiring?

06:28 The tradeoffs of retiring early

07:29 Why 30 years is an important milestone

08:14 Should you keep working after 30 years?

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🙋🏽‍♀️ Need help? Schedule A Meeting :

https://calendly.com/scenicfinancial

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🎯Get TRS 3, PERS 3 & DCP Investment Advice Here:

💥💥 https://scenicfinancial.net/scenic-plan-confidence1/💥💥

The Only Place To Receive Ongoing, Personalized Investment Advice, So You Can Confidently Invest In Your TRS 3, PERS 3 & DCP Retirement Plans!

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🕸 Visit Us Online:

Scenicfinancial.com

WATRSPERS.com

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DISCLAIMER

**Advisory Services offered through Intirety, LLC a registered investment adviser. Intirety LLC and Scenic Financial are not associated with the Washington State Department of Retirement in any way. Scenic Financial makes content available as a service to its clients and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. 🕸️

Free Washington Retirement Planning Community and Courses

What is a Roth IRA, how does it work, and why might you want one as part of your retirement strategy?

In this episode of the Washington State Retirement Planning Podcast, we break down the Roth concept in simple terms, including how Roth IRAs differ from pretax retirement accounts and why paying taxes today can potentially give you tax-free growth and withdrawals in retirement.

We use a simple example to explain the difference between paying taxes now versus paying them later, then cover Roth IRA contribution limits, Roth conversions, and why having both pretax and Roth money can provide valuable tax diversification in retirement.

We also answer a listener question about whether you should move money out of the market because of concerns about an imminent crash. We discuss why trying to time the market is so difficult, how diversification can help, and why having rules and indicators can be better than making investment decisions based on fear or gut feelings.

Finally, we look at why market risk becomes especially important as you approach retirement and why trying to double your portfolio in your final years before retirement can create unnecessary risk.

00:00 What Is a Roth IRA?

03:08 Roth IRA income limits and Roth conversions

04:06 Why tax diversification matters in retirement

05:01 Should you move your money because of a market crash?

08:16 The danger of taking too much risk before retirement

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🙋🏽‍♀️ Need help? Schedule A Meeting :

https://calendly.com/scenicfinancial

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🎯Get TRS 3, PERS 3 & DCP Investment Advice Here:

💥💥 https://scenicfinancial.net/scenic-plan-confidence1/💥💥

The Only Place To Receive Ongoing, Personalized Investment Advice, So You Can Confidently Invest In Your TRS 3, PERS 3 & DCP Retirement Plans!

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🕸 Visit Us Online:

Scenicfinancial.com

WATRSPERS.com

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

DISCLAIMER

**Advisory Services offered through Intirety, LLC a registered investment adviser. Intirety LLC and Scenic Financial are not associated with the Washington State Department of Retirement in any way. Scenic Financial makes content available as a service to its clients and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. 🕸️

Free Washington Retirement Planning Community and Courses

What is a VEBA account, and how can Washington State employees use it to pay for healthcare in retirement?

In this episode of the WA Retirement Podcast, we break down how VEBA accounts work, including how they can be funded, how unused sick leave can be converted into a VEBA account, and why the account can provide a valuable tax advantage for healthcare expenses.

We explain how VEBA compares to an HSA, how the money can be invested, and how you can use it to pay for expenses such as Medicare and PEBB premiums. We also discuss why moving unused sick leave into VEBA can be more valuable than taking the cash and paying taxes on it.

Then we answer a listener question about whether SEBB or PEBB funds can be withdrawn at age 64. We clarify the difference between healthcare plans and actual retirement accounts, and explain when you can access accounts like Plan 3, DCP, 403(b), and IRAs after separating from service.

If you're a Washington State employee planning for retirement, understanding how VEBA works could help you reduce healthcare costs and make better use of benefits you've already earned.

00:00 What is a VEBA account and how does it work?

01:57 How VEBA works and the triple tax benefit

02:40 Using unused sick leave to fund VEBA

03:49 Can you withdraw SEBB or PEBB funds at 64?

05:15 Should you withdraw money at age 64?

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🙋🏽‍♀️ Need help? Schedule A Meeting :

https://calendly.com/scenicfinancial

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🎯Get TRS 3, PERS 3 & DCP Investment Advice Here:

💥💥 https://scenicfinancial.net/scenic-plan-confidence1/💥💥

The Only Place To Receive Ongoing, Personalized Investment Advice, So You Can Confidently Invest In Your TRS 3, PERS 3 & DCP Retirement Plans!

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🕸 Visit Us Online:

Scenicfinancial.com

WATRSPERS.com

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

DISCLAIMER

**Advisory Services offered through Intirety, LLC a registered investment adviser. Intirety LLC and Scenic Financial are not associated with the Washington State Department of Retirement in any way. Scenic Financial makes content available as a service to its clients and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. 🕸️

Free Washington Retirement Planning Community and Courses

What is the Washington State Long Term Care Tax, what does it actually cover, and can you still opt out?

In this episode of the Washington State Retirement Planning Podcast, we break down the latest updates to Washington's long term care program, including how the payroll tax works, how much you could receive in benefits, who qualifies, and the changes that have been made since the program was introduced.

We also explain whether it's still possible to opt out, what happens if you leave Washington State, how the benefit can be used for home care, assisted living, nursing homes and other qualifying expenses, and why the state benefit may not be enough to fully cover a long term care event.

Then we discuss whether Washington State employees should consider additional private long term care insurance and how existing pension and Social Security income can reduce the amount of private coverage you may actually need.

Finally, we answer a listener question from a teacher and coach about whether coaching income counts toward their pension. We explain why additional compensation can increase your pension benefit and why it's important to verify that all eligible income is being reported correctly.

00:00 Washington Long Term Care Tax explained

01:13 What the long term care tax covers

03:35 Can you still opt out?

04:09 How the benefit has changed

05:14 Who qualifies and how portability works

06:16 Is Washington's coverage enough?

07:40 Should you buy private long term care insurance?

09:28 2026 long term care tax update

09:47 Q: Does coaching pay count toward your pension?

10:41 Why you should verify your pension income

11:23 A real example of missed coaching income

12:00 Final thoughts and resources

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🙋🏽‍♀️ Need help? Schedule A Meeting :

https://calendly.com/scenicfinancial

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

🎯Get TRS 3, PERS 3 & DCP Investment Advice Here:

💥💥 https://scenicfinancial.net/scenic-plan-confidence1/💥💥

The Only Place To Receive Ongoing, Personalized Investment Advice, So You Can Confidently Invest In Your TRS 3, PERS 3 & DCP Retirement Plans!

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

🕸 Visit Us Online:

Scenicfinancial.com

WATRSPERS.com

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

DISCLAIMER

**Advisory Services offered through Intirety, LLC a registered investment adviser. Intirety LLC and Scenic Financial are not associated with the Washington State Department of Retirement in any way. Scenic Financial makes content available as a service to its clients and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. 🕸️

Free Washington Retirement Planning Community and Courses

What exactly is a financial plan, and do you really need one?

In this episode of the Washington Retirement Planning Podcast, Ethan breaks down what a financial plan is, what it should include, and why having a clear roadmap can help you make smarter decisions about retirement, taxes, investing, and long-term financial security. From cash flow projections and retirement income planning to tax strategies and "what-if" scenarios, you'll learn how a comprehensive financial plan can help bring clarity to your future.

Later in the episode, Ethan answers a listener question about one of the biggest concerns facing early retirees: how to pay for healthcare before Medicare begins at age 65. He discusses PEBB retiree coverage, COBRA options, VEBA accounts, retirement savings strategies, and how Washington State annuity options can help create reliable income to cover healthcare expenses.

Whether you're decades away from retirement or preparing to leave work soon, this episode provides practical guidance for building a retirement plan with confidence.

00:00 Introduction

00:20 What is a financial plan?

01:36 Key components of a comprehensive financial plan

03:11 When should you create a financial plan?

03:48 How to find a financial planner

04:45 What financial plans typically cost

06:23 Why financial planning is an ongoing process

06:42 Listener question: Paying for healthcare before age 65

07:46 PEBB retiree coverage vs. COBRA

10:13 How to fund pre-Medicare healthcare costs

11:30 Using VEBA and sick leave benefits

13:43 Using annuities to cover healthcare expenses

17:31 Important annuity deadlines and planning considerations

18:30 Final thoughts on retirement healthcare planning

19:15 Resources and community support

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🙋🏽‍♀️ Need help? Schedule A Meeting :

https://calendly.com/scenicfinancial

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

🎯Get TRS 3, PERS 3 & DCP Investment Advice Here:

💥💥 https://scenicfinancial.net/scenic-plan-confidence1/💥💥

The Only Place To Receive Ongoing, Personalized Investment Advice, So You Can Confidently Invest In Your TRS 3, PERS 3 & DCP Retirement Plans!

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

🕸 Visit Us Online:

Scenicfinancial.com

WATRSPERS.com

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

DISCLAIMER

**Advisory Services offered through Intirety, LLC a registered investment adviser. Intirety LLC and Scenic Financial are not associated with the Washington State Department of Retirement in any way. Scenic Financial makes content available as a service to its clients and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. 🕸️

Free Washington Retirement Planning Community⁠⁠⁠

Should you use the TAP annuity when you retire?

In this episode of the Washington Retirement Planning Podcast, we break down one of the most powerful and misunderstood retirement tools available to Washington State Plan 3 members.

We cover how the TAP annuity works, who can use it, when you can purchase it, and why it may help create more reliable retirement income. We also discuss the guaranteed lifetime income feature, the 3% annual COLA, common myths surrounding TAP, and why many retirees underestimate the value of guaranteed income.

You'll also learn:

• How TAP converts Plan 3 savings into lifetime income
• Why TAP can only be purchased with Plan 3 funds
• The impact of interest rates on TAP payouts
• Why returns and retirement income are not the same thing
• Common mistakes retirees make with Plan 3 accounts
• How TAP can help cover healthcare costs in retirement
• What happens to unused TAP funds when you pass away

In the second half of the episode, we answer a community question about maximizing Washington State retirement benefits and discuss savings strategies, healthcare planning, retirement timing, and survivor benefit decisions.

Whether you're approaching retirement or already separated from service, understanding TAP could have a major impact on your retirement income plan.

00:00 Introduction and today's topics
01:23 What the TAP annuity is and how it works
03:07 TAP eligibility, separation from service, and payout rates
05:31 Why TAP is different from private annuities
07:07 Returns do not equal retirement income
12:17 Common TAP mistakes and beneficiary myths
16:40 Five ways to maximize Washington State retirement benefits
20:59 Understanding retirement timing and pension decisions
23:15 Survivor benefit options explainedLinks:

1. Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

Free Washington Retirement Planning Community and Courses

What should you actually do with your Plan 3 account once you retire?

This is one of the most common questions Washington State employees ask, and the answer isn’t one-size-fits-all.

In this episode, we break down the real options you have after separating from service, including when it makes sense to keep your money in Plan 3, move it out, or use it to create additional guaranteed income.

We also walk through how the TAP annuity works, when it might make sense, and why it can be a powerful tool for covering fixed expenses like healthcare in retirement.

Then we shift into a full update on recent Washington State retirement-related legislation, including what passed, what didn’t, and what it could have meant for your pension.

Topics covered:

- What to do with your Plan 3 account after retirement

- When a TAP annuity makes sense

- Why many people choose to roll funds into an IRA

- Investment flexibility and tax planning opportunities

- Recent Washington State pension and benefits legislation updates

If you're approaching retirement or just planning ahead, this episode will help you think through your next move with your Plan 3 money.

Links:

1. Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

🙋🏽‍♀️ Need help? Schedule A Meeting :

https://calendly.com/scenicfinancial

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

🎯Get TRS 3, PERS 3 & DCP Investment Advice Here:

💥💥 https://scenicfinancial.net/scenic-plan-confidence1/💥💥

The Only Place To Receive Ongoing, Personalized Investment Advice, So You Can Confidently Invest In Your TRS 3, PERS 3 & DCP Retirement Plans!

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

🕸 Visit Us Online:

Scenicfinancial.com

WATRSPERS.com

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

DISCLAIMER

**Advisory Services offered through Intirety, LLC a registered investment adviser. Intirety LLC and Scenic Financial are not associated with the Washington State Department of Retirement in any way. Scenic Financial makes content available as a service to its clients and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. 🕸️