Financial Planning for Faculty at the Claremont Colleges
Faculty members at the Claremont Colleges are known for their academic excellence. But when it comes to financial planning—especially around retirement—many professors and staff may face a challenge. With access to benefits like the Claremont Colleges Academic Retirement Plan (a 403(b) account), along with optional sabbaticals and phased retirement, faculty often ask: Am I making the most of what’s available?
In this guide, we’ll help you make sense of your retirement benefits, avoid costly mistakes, and align your financial decisions with your long-term goals. Whether you teach at Pomona, Pitzer, Scripps, Harvey Mudd, Claremont McKenna, Keck Graduate Institute, or Claremont Graduate University, this article is tailored for you.
Why Faculty Financial Planning Is Different
Retirement planning for higher education professionals isn’t like working in the private sector. For faculty at the Claremont Colleges, here’s what adds complexity:
You participate in a defined contribution 403(b) retirement plan with employer contributions.
Sabbatical planning and academic calendar constraints can affect when and how you retire.
Many faculty members have dual-income households, sometimes with inconsistent income patterns.
You may want to retire in Southern California, where the cost of living and taxes are high.
You’re often mission-driven, which means wealth goals may involve legacy, philanthropy, or second careers.
That’s why a one-size-fits-all financial plan doesn’t cut it.
Understand Your 403(b): The Claremont Colleges Academic Retirement Plan
The Academic Retirement Plan gives eligible employees access to a 403(b) plan, similar to a 401(k) but designed for educators and nonprofit workers. You can contribute pre-tax (or Roth) dollars, and the colleges typically make employer contributions once eligibility requirements are met.
Key considerations:
Are you maximizing your contribution limits each year?
Have you reviewed your investment choices recently?
Do you understand how your 403(b) contributions fit into your broader plan?
A fiduciary advisor can help you map out how much income your retirement assets will generate and whether that aligns with your timeline.
Plan Your Ideal Retirement Timeline
For academics, retirement is not always a single event—it’s a process. You might teach part-time for a few years, take a final sabbatical, or even transition into research or consulting.
The earlier you start planning, the more options you’ll have. Common questions include:
Can I afford to retire at 62, 65, or later?
Should I phase into retirement or stop all at once?
How does retirement timing affect Social Security, required minimum distributions (RMDs), and taxes?
Clarity here helps you feel confident—not rushed—about your future.
Navigate Tax Complexity
Educators in California often face a high marginal tax rate, especially if they are dual-income or nearing retirement. That’s why proactive tax planning is critical:
Should you use Roth or traditional 403(b) contributions?
When is the best time to start drawing down retirement assets?
Are you prepared for the tax impact of RMDs?
Coordinating income sources—403(b), Social Security, brokerage accounts—can lower your lifetime tax burden significantly. And if you’re considering charitable giving, there are smart ways to do so with appreciated assets or qualified charitable distributions (QCDs).
Don’t Overlook Sabbaticals, Student Loans, and Legacy Goals
Claremont Colleges faculty also face situations like:
Sabbatical Leave: Should you save more in advance? How does it affect retirement contributions?
Student Loan Repayment: If you or your partner still carries graduate school debt, have you explored public service loan forgiveness or refinance options?
Legacy and Estate Planning: Do you want to leave a gift to the college, your children, or a cause you care about?
All these pieces should be integrated into your plan, not treated as afterthoughts.
Why Work with a Fiduciary Advisor in Claremont?
Evermont Wealth is based in the heart of Claremont and specializes in working with faculty, staff, and professionals at the Claremont Colleges. As fee-only fiduciaries, we don’t sell products or earn commissions—we work solely in your best interest.
We help faculty:
Maximize their 403(b) and other benefits
Coordinate income and investment plans
Create a step-by-step retirement roadmap
Plan tax-efficient withdrawals and charitable giving
Review insurance, estate plans, and more
Whether you’re decades from retirement or nearing the transition, our approach is personal, thoughtful, and grounded in the community we call home.
Ready to Build Your Financial Game Plan?
You’ve invested your career in helping others grow—we can help you feel confident that your financial future is just as carefully considered.
Schedule a free 30-minute consultation with Evermont Wealth to start:
Clarifying your Claremont Colleges benefits
Understanding your retirement income outlook
Aligning your plan with your lifestyle goals
📍 Based in Claremont. Serving you wherever you are.
📞 Schedule a Call
For personalized advice on long-term financial planning, schedule a call with a fiduciary financial advisor at Evermont Wealth.
This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.