2. Meredith Goeken LuAnne Vides Dan Walter CI 752R

4. Never Too Early To Plan Your Retirement If you fail to plan, plan to fail. Individual Retirement Account (IRA) Compound Interest Two plans. Which would you choose?

5. IRA Individual Retirement Account Traditional IRA Tax write-offExample $1,000 invested Government gives you $280 return Roth IRA Tax free at withdrawal Win-win

6. Compound Interest A = P(1+r) t A= amount P= principal r= rate t= time

7. Adam the early bird Starts at age 22 Invests $3000 for 6 years At 11% interest

8. Brenda the procrastinator Starts investing at age 28 Invests $3000 every year thereafter Until age 63 At 11% interest

9. Who retires with the most? Adam? Brenda? And how much difference between the final results?

10. Plan A and B.xls

12. Invests $18,000 Retires at age 63 with $1,128,249 Invests $108,000 Retires at age 63 with $1,265,947

13. Lesson Plan