In Your 30s: Building momentum. Don't waste it.

Your 30s are when the financial decisions start mattering in a more tangible way. Salary is growing, pension is accumulating, and the habits you build now will compound for another 30 years. Good habits or bad ones. Pick one.

Contribute what you can. Do not stress about maxing it.

Teachers do not have unlimited disposable income. We know this. The goal is not to max your 403(b) this year. The goal is to contribute consistently, increase it when you get a raise, and not leave your money sitting in a bad product that charges you 1.5% a year to underperform.

A realistic target for most teachers in their 30s is somewhere between 6% and 10% of income going into the 403(b). If you can do more, great. If you cannot, do not let perfect be the enemy of good. The contribution you actually make beats the theoretical maximum you never hit.

Vanguard: How America Saves → TIAA: Are Public Sector Workers Saving Enough? →

Your 403(b) provider deserves a second look

By your 30s you probably have some real money accumulated in your 403(b). If you have never looked at what you are actually paying in fees, now is the time.

Call your provider and ask them to send you a full fee disclosure. Look for a number called the expense ratio or the total annual fund operating expense. If you are in a variable annuity product the all-in cost might be 1.5% or higher annually. That is a meaningful drag on your long-term returns.

The good news is that most districts have multiple 403(b) vendors on their approved list and many of them offer low-cost index fund options. You are not locked into a bad product. You just might have to ask the right questions to get out of one.

Know your pension thresholds

If you were hired before January 1, 2013 two numbers matter more than anything else in your CalSTRS planning: 25 and 30.

At 25 years of service your final compensation calculation switches from a three-year average to your single highest year of earnings. For teachers whose salary has grown significantly over their career this can meaningfully increase the pension benefit.

At 30 years you pick up a career factor enhancement that adds an additional percentage to your benefit calculation. The difference in lifetime pension income between retiring at 29 years versus 30 years can be significant.

Know where you are relative to these thresholds. If you are at 22 years and thinking about retiring at 54 the calculus changes if you understand what 25 and 30 years actually unlocks.

Term Life Insurance Is Cheaper Now Than It Will Ever Be Again

Getting a term life policy in your 30s, while you're young and healthy, locks in a rate that only gets more expensive with age. It's worth having regardless of your retirement plans, and it also keeps pension maximization on the table down the road if you decide it fits your situation.

Think about a Roth IRA if you do not have one

If you are not already contributing to a Roth IRA outside of your 403(b) it is worth considering. Your tax rate in your 30s is likely lower than it will be in your peak earning years and lower than the rate you might face in retirement if you have significant pre-tax savings being forced out as required minimum distributions.

Roth contributions grow tax-free and come out tax-free in retirement. There are income limits to be aware of so whether this makes sense depends on your specific situation. But for most teachers in their 30s it is worth at least exploring.

A mid-30s financial review typically surfaces two or three things most people did not know they were missing. Let's find yours.