SAVING FOR RETIREMENT Adam Breister Taylor Montgomery Luke Sebald Maggie Smith

“A growing percentage of middle-class Americans say they have saved so little for retirement that they expect to work into their 80s or even until they either get too sick or die, according to a recent survey.” - CNN MONEY

Nearly half of middle-class workers said they are not confident that they will be able to save enough to retire comfortably, according to a Wells Fargo survey of 1,000 workers between the ages of 25 and 75, with household incomes between $25,000 and $100,000. -Melanie Hicken

According to Boomers and Retirement, a new survey by TD Ameritrade, the average Baby Boomer is about a half-million dollars short on retirement savings. And 74% of Boomers in the survey say they will have to rely heavily on Social Security in retirement. (The average Social Security check, by the way, is $1,230 a month.) - USA TODAY

“Saving early is key! I’m telling you, starting to save early in life is one of the best things you can do for yourself” JENNI RIEDEMAN - FINANCIAL ADVISOR RJFS

OVERVIEW TRADITIONAL & ROTH IRAs MUTUAL FUNDS & STOCKS COMPOUND INTEREST (ACTIVITY) 401K PENSION SOCIAL SECURITY

HISTORY OF TRADITIONAL IRA 1974 – EMPLOYEE RETIREMENT INCOME SECURITY ACT ◦PROVIDED TAX ADVANTAGE RETIREMENT PLAN TO EMPLOYEES WITH NO PENSION ◦PERSERVED RETIREMENT ASSESTS AT EMPLOYEE TERMINATION OR LAY-OFF ◦BECAME UNIVERSALLY AVAILABLE IN 1981

TRADITIONAL IRA EARNED INCOME – NO INCOME RESTRICTIONS UNDER 70 ½ NO MORE THAN $5500 A YEAR UNDER 50 TAX DEDUCTIBLE TAXES PAID ON EARNINGS WHEN WITHDRAWN START TAKING OUT AT 59 ½ MUST START TAKING OUT BY 70 ½

HISTORY OR ROTH IRA

ROTH IRA

MUTUAL FUNDS

COMPOUND INTEREST Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Compound interest can be thought of as “interest on interest,” and will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount. - INVESTOPEDIA

ACTIVITY

401K