New Guide: Will You Be Ready for the “Tenure of a Lifetime”?
by Chris Brown, Ph.D., MBA, CFP® and Ron A. Rhoades, JD, CFP®
As professors, we have also been awake late at night, asking ourselves about retirement. Our decades of research and practice have been in service to others – solving complex problems, mentoring the next generation, and providing advice to our communities. But when it comes to our own lives, we face a paradox that haunts thousands of retiring academics.
Research confirms that retirement represents one of life’s most significant transitions, requiring psychological adjustment as profound as any career milestone.1 Unlike corporate executives who may view retirement as a clean break from institutional obligations, professors must navigate shifts in intellectual engagement, professional community, and personal identity that are uniquely intertwined with their sense of self.2
Along with these shifts come financial questions: “Can I afford to retire? Should my TIAA accounts stay where they are? Do I take Social Security now or later? How does the new legislation impact my benefits? How can I guarantee the security of myself, my spouse, and/or my children?”
In our latest guide, Will You Be Ready for the “Tenure of a Lifetime”?, we explore these questions through a hypothetical scenario with Dr. Maragaret Chen – a 62-year-old academic trying to figure out how she and her husband could retire. In a series of meetings with Chris and Ron, we guide Margaret through these concerns with the same intellectual rigor that she spent a lifetime using in her classrooms – alongside the care and compassion of trusted, fiduciary advisors.
The Unique Challenges of Academic Retirement
Our guide addresses a fundamental question: Why do standard financial planning approaches so often fail professors – and what makes academic retirement fundamentally different from corporate retirement?
Academic retirement planning presents a set of structural complexities that differ in meaningful ways from many other retirement paths. Faculty members often accumulate retirement assets across multiple institutions, navigate the unique features of the TIAA Traditional system, and face a compressed savings window resulting from years spent in graduate and postdoctoral training. These factors can create planning considerations that require careful analysis and coordination over time.
There are also critical questions based on the age of retirement, which can sometimes be substantially lower for academics than those in the corporate world:
- Will the “Rule of 55” effect you – and how can this rule allow penalty-free distributions upon “separation from service” when or after you turn 55? (Internal Revenue Code 72(t))
- How will the Social Security Fairness Act of 2025 effect when you should claim benefits? If you have already claimed benefits, is there a retroactive adjustment?
- What happens when you start withdrawing – entering the decumulation phase – and which research-backed strategies can help manage your risk?
- What if you want to leave money to your children? How can you do this without leaving too much, or too little?
- Can the Stoics offer us retirement wisdom and purpose – and how does this integrate into your financial plan?
- How do you choose a financial advisor with your best interests in mind?
About the Authors
Ron A. Rhoades, JD, CFP®
Ron Rhoades is an Associate Professor of Finance at the Gordon Ford College of Business, Western Kentucky University. He also serves as a financial advisor at Scholar Financial, a practice within XY Investment Solutions LLC. With a background as both an attorney and a CERTIFIED FINANCIAL PLANNER™ professional, Ron is a nationally recognized authority on the fiduciary duties of financial advisors.
Chris Brown, Ph.D., CFP®
Chris Brown is a faculty member in the Department of Finance at the Gordon Ford College of Business, Western Kentucky University, and a financial advisor at Scholar Financial, a practice within XY Investment Solutions, LLC. He holds the CERTIFIED FINANCIAL PLANNER™ designation and a Ph.D. in Personal Financial Planning. His research and teaching focus is on behavioral finance, retirement planning, and evidence-based investment strategies.
Disclaimer: This article and the downloadable guide are for educational purposes only. Scenarios and references to client experiences are used solely to illustrate financial planning concepts. Dr. Margaret Chen is a hypothetical client and is not directly representative of any current client of Scholar Financial of XYPN Sapphire. These examples may not apply to your individual circumstances. It should not be construed as financial, legal, tax, or investment advice, nor as a recommendation to implement any specific strategy, product, or investment. As a fiduciary, we provide advice tailored to each client’s goals and financial situation. Consult with a qualified financial professional before making investment decisions.
Advisory services are offered through XYPN Sapphire and its various IAR brands under which it operates. XYPN Sapphire is an SEC registered investment adviser. For additional disclosure and privacy information, please visit XYPNSapphire.com/disclosures.
References
TIAA Institute. (2017). Tax-efficient sequencing of accounts to tap in retirement. TIAA Institute Research Dialogue.
Vanguard. (2022). A ‘BETR’ approach to Roth conversions. Vanguard Research.
