Chris and Pat each invest $500 per month in a retirement plan that earns 7% annual yield. Their Contributions: Chris starts making contributions at age 18 and stops at age 28, leaving the money invested. Pat waits until age 38 to start investing and continues making contributions until age 68. The Results: Chris contributed one-third as much as Pat. Yet Chris’s ending balance at age 68 is over twice as great.

AdvantagesDisadvantages You can plan exactly what type you want. Your money is tied up for years without earning interest You can lock in today’s pricesIf you move you may not be able to transfer your funeral arrangements Funeral home may go out of business.

- MONEY - TIME - INTEREST RATE

$50/MONTH$400/MONTH7%7% 33 YEARS $126,398$1,010,928

8 YEARS 31 YEARS AGE 25 – 33 AGE 33 – 65 $2,000/YEAR$2,000/YEAR $18,000 TOTAL INVESTMENT $62,000 TOTAL INVESTMENT $909,280$555,678

SAVINGS ACCOUNT MUTUAL FUND $10,000$10,000 5%14% 20 YEARS $26,533$137,434

NAMEADVANTAGEDISADVANTAGES PASSBOOD ACCOUNT *Few restrictions *Unlimited withdrawals *Low rate of return NOW ACCOUNTS *Checking privileges *High minimum deposit *% rate can drop MONEY MARKET Higher interest rate than savings High minimum deposit Limited # of withdrawals

T-BILLS *Interest tax exempt *Easily sold *High minimum deposit STOCKS *High gains *High risk *Must track daily GOLD & SILVER *Holds value when others don’t *Doesn’t earn interest *Not always liquid MUTUAL FUNDS *Diversified *Professional manager *Easily sold *Risky