Recently, I had the privilege of helping a new client retire after dedicating 36 years to a local RGV school district.
Like many educators and school administrators I meet with throughout McAllen, Mission, Edinburg, Weslaco, Harlingen, Brownsville, and the surrounding Rio Grande Valley area, retirement had been on her mind for quite some time.
But this year felt different.
She shared with me that while the financial side of retirement obviously mattered, deep down in her heart she simply knew it was time.
Honestly, I hear that quite often from educators throughout South Texas.
Many teachers, administrators, and school employees eventually reach a point where they feel ready for the next chapter of life.
Of course finances matter — but retirement is also emotional.
After spending decades serving students, families, and their communities, stepping away from a career in education can be one of the biggest transitions a person experiences.
The Challenge: Choosing the “Right” TRS Retirement Option
One of the biggest concerns my client had was deciding which Teacher Retirement System of Texas (TRS) retirement option aligned best with her personal and family situation.
Like many TRS retirees, she had several important choices to evaluate:
- Standard Annuity
- Option 1 (100% Joint & Survivor)
- Option 2 (50% Joint & Survivor)
- Option 3 (60-Month Period Certain)
- Option 4 (120-Month Period Certain)
- Option 5 (75% Joint & Survivor)
- Partial Lump Sum Options (PLSO)
And on top of all that, she was eligible to take either:
- a 12-month lump sum
- a 24-month lump sum
- or a 36-month lump sum
That is A LOT for someone to process while preparing for retirement.
“Why Don’t You Just Fill Out the TRS Paperwork Yourself?”
One comment she shared with me really stood out.
After mentioning to some colleagues that she had begun working with a financial planner, several people asked her:
“Why don’t you just complete the TRS retirement paperwork yourself?”
Others told her:
“Why don’t you just have a TRS benefits counselor help you fill it out?”
And honestly, I completely understand why people ask that question.
But the reality is:
My client did not hire me simply because she needed help filling out paperwork.
She wanted guidance thinking through which option appeared to make the most sense for HER specific financial life, retirement goals, and family situation.
That’s a very different conversation.
Looking Beyond the Numbers
Over the course of several meetings, we carefully reviewed:
- her TRS retirement estimates
- her monthly expenses
- her retirement goals
- her husband’s financial situation
- survivor income considerations
- her comfort level with risk
- and how much monthly income she realistically needed during retirement
After reviewing her overall financial picture, the option she ultimately felt most comfortable selecting was:
TRS Option 1 — the 100% Joint & Survivor Annuity
This helped provide her with comfort knowing that:
- if something happened to her first, her husband would continue receiving the same monthly pension amount from TRS for the rest of his life
- and if her husband passed away before her, her monthly pension would “pop up” back to the higher Standard Annuity amount
That survivor protection and flexibility were extremely important considerations for her.
Why She Also Chose a Partial Lump Sum Option (PLSO)
In addition to selecting the Joint & Survivor option, she also elected to take a 24-month Partial Lump Sum Option (PLSO) and roll those funds into an IRA.
Why?
Because she wanted additional liquidity and flexibility entering retirement.
Like many retirees throughout South Texas, she wanted access to funds she could potentially use to:
- travel
- enjoy retirement
- handle future unexpected expenses
- and simply feel financially comfortable entering this next stage of life
Now yes — taking a PLSO does permanently reduce the monthly TRS pension amount.
However, because we had already taken the time to review her monthly expenses and retirement income needs, she felt comfortable knowing the adjusted pension amount still appeared sufficient for her lifestyle and goals.
Having greater clarity around her retirement income and expenses helped her feel more confident moving forward.
There Is No “Best” TRS Retirement Option for Everybody
One thing I always try to emphasize to retirees is this:
Not all of my clients choose the same TRS option.
And honestly, they shouldn’t.
Every family situation is different.
Some retirees prioritize:
- maximizing monthly income
- protecting a spouse
- maintaining flexibility
- taking a lump sum
- preserving survivor benefits
- or maintaining higher guaranteed income
The important thing is not choosing what “most people do.”
The important thing is understanding what may make the most sense for YOUR financial life and retirement goals.
Because once you choose a TRS retirement option, the decision is generally irrevocable.
How I Help Soon-to-Be TRS Retirees
I know one reason some people hesitate to work with a financial professional is because they are unsure how advisors charge for their services.
So I thought it might be helpful to briefly explain how I personally work with clients approaching retirement throughout the Rio Grande Valley and South Texas.
The first consultation is always complimentary and there is absolutely no obligation to work with me afterward.
If anything, many people leave the first meeting simply feeling more educated and informed about their options.
From there, the way I work with someone depends entirely on their specific situation and the type of help they are looking for.
Some individuals simply want guidance evaluating their TRS retirement options, survivor choices, Partial Lump Sum decisions, health insurance considerations, and retirement paperwork.
Others may want ongoing help with retirement planning, investment management, rollover accounts, IRAs, 403(b) accounts, or broader financial planning needs.
Depending on the situation, services may be provided:
- on a flat-fee basis
- through hourly consultation meetings
- or through an ongoing advisory relationship
The important thing is that retirees understand their options and feel comfortable with whichever path they choose moving forward.
My goal is never to pressure someone into a particular solution, but rather to help provide clarity, education, and guidance during one of the biggest financial transitions of their life.
The Value of Personalized Financial Guidance
TRS benefit counselors are incredibly valuable and can do a great job explaining how the retirement options work.
However, they are generally limited in the individualized financial planning guidance they can provide regarding a retiree’s broader financial picture.
They can help explain the available options.
But many retirees still want help thinking through:
- long-term retirement income needs
- spouse protection considerations
- investment coordination
- Social Security planning
- tax considerations
- healthcare planning
- and how all of these decisions work together within their overall retirement plan
That’s where working with a CERTIFIED FINANCIAL PLANNER™ professional can sometimes provide additional clarity and perspective.
Retirement is one of the biggest financial transitions a person will ever experience.
And when a decision may impact the rest of your life, it can help to have someone experienced helping you carefully think through the options before making a final decision.