1. Date: Tuesday March 25 th 2014 Aim: How can you prepare for your retirement? Do Now: Why is it important to invest in a retirement fund? When should you start?

2. What are examples of different retirement investment options?  IRAs (Individual Retirement Accounts): Retirement savings plan that allows individuals to set aside up to a specified amount each year and delay paying taxes on it. Tax deferred until you begin withdrawing from it  Roth IRAs: Contributions are taxed but earnings are not. Pay tax on your income before you put it into your account

3. Employee Sponsored Retirement Plans  Defined Benefit Plan-  Company-sponsored retirement plan  Retired employees receive a set monthly amount based on wages earned and number of years of service.  Defined Contribution Plan-  Company-sponsored retirement plan  Employees can receive a periodic or lump-sum payment based on their account balance and performance of the investments in their account  Employer may or may not contribute to the employees account as well  This plan specifies the amount the employer may contribute to their account each year

4.  401(k) Plan-  A defined-contribution plan for employees of companies that operate for a profit  403(b) Plan-  A defined-contribution plan for employees of schools, non-profit organizations, and government units Employee Sponsored Retirement Plans

5. How much income will we need? Many financial advisors suggest you need between 75 and 85% of your preretirement income to live comfortably

6. Activity 1)Make a list of the things you want to do when you retire (ex: travel, own your home, buy a summer house, etc) 2) How much money total do you think you will need to live on if you retire at 62 and live to be 92? 3) Come up with a plan to reach that goal. Let’s say you work for 40 years. Figure out what you need to contribute to retirement each month to reach your goal. ListTotalGoal Calculations

7. Why should you think about retirement when you are just beginning your work career?