1. MANAGING MONEY INVESTMENTS & RETIREMENT SENIOR ADVISORY March, 2014

2. WAYS TO SAVE & INVEST Savings for Future (money for future needs) Investing for Future (long term savings with a financial return) Investing in Stocks Investing in Bonds Investing in Mutual Funds, Real Estate and Other Retirement

3. SAVINGS ACCOUNT This is a specified account at a bank where you place your money for future use. The bank pays you for putting your money in an account with them (interest). Its not easy to save. We usually have money for needs but not for wants. Savings goals are both short-term (prom) and long-term (college/car).

4. STEPS FOR A SAVINGS PROGRAM Pay Yourself First 10% of your paycheck going into your savings account is a good goal to maintain. Break Costly Habits Example: Coffee - $3 per day/5 times a week = $15 per week = $780 year Put gifts right into bank

5. TYPES OF SAVINGS ACCOUNTS Simple Savings You can take it out anytime Money Market (savings for future) Usually requires minimum deposit But has higher interest rate Certificates of Deposits (CDs) Deposit for fixed period of time Will have fee for taking it out early Usually has a higher interest rate than a simple savings account Most CDs dont allow you to add to your account until the period of time on the CD has expired

6. INTEREST Money you earn on deposited money in an account APR - (Annual Percentage Rate) percent you earn if money is in the account for a year Usually calculated on a monthly basis Example You deposit $200 into a savings account with 3% APR Each month you will receive approximately $.50

7. INVESTING Use of money to create more money Things to Consider Return – what you receive from your money Risk – chance of loss Liquidity – how fast you can get your cash back It is recommended that you have 2-6 months of take home pay saved before you invest

8. DIFFERENT TYPES OF INVESTMENTS Common Stock – a share of ownership in a large company Mutual Fund – people pool their money for a variety of investments in multiple companies Bonds – IOUs issued by the government or companies to raise money for operations Real Estate – purchasing real estate which can include land and buildings The purpose of these investments is to get back more than you put in when you choose to sell.

9. RETIREMENT You will need money to live once you are not working. Some jobs offer some type of retirement benefit. Pension: When you retire, your employer will pay you a percentage of your salary based on the number of years you worked and the age at which you retire. 401K: This is a retirement account that you and your employer contribute to every month. Most 401Ks have penalties if you withdraw money from the account before you are 59 ½ years of age. 403B: This is another type of retirement account where money comes directly out of your paycheck and goes into a retirement investment account for you to use after you retire. IRA: Individualized Retirement Account – most banks and financial investment brokers offer these.

10. RETIREMENT (CONT.) The main trick to retirement savings is saving early and for a longer period of time! The earlier you begin saving money and the longer you keep your money untouched, the more you will have when you are ready to retire. Lets exam how this works. Can you be a millionaire? Go to the savings calculator below and experiment with different amounts and ages. http://www.aarp.org/money/investing/millionaire_calculator/ Saving money for your future, whether it be two months from now or thirty years from now, is a good habit to create. Being financially responsible for yourself and planning for your future, is a huge ADULT responsibility. You are almost there!