1. Christian Perspective  Ecclesiastes 5:10 Whoever _____ _______ never has ______ enough; whoever _____ ________ is never satisfied with his income. This too is meaningless.  Hebrews 13:5 Keep your lives free from the _____ ___ _______ and be content with what you have…  I Timothy 6:10 For the ____ __ ______ is a root of all kinds of evil.

2. Christian Perspective  I Corinthians 16:2(Paul speaking) On the first day of each week, each one of you should ____ ______ a sum of money in keeping with his income, _______ ___ ___, …  Proverbs 13:11 Dishonest money dwindles away, but he who _______ _______ ________ by _______ makes it grow.  Proverbs 13:22 A good man _______ ___ ______________ for his children's children, …

3. 401K, 403B, 457, SEP Retirement Plans  Company sponsored retirement savings plans (supported by multiple types of mutual funds) –401K offered by ____________________ companies –403B offered by ____________________ companies –457 offered by _______________ _____________ –SEP available for ______________ _____________  In many cases, these retirement savings plans are __________ company sponsored _________ _______

4. 401K, 403B, 457, SEP Retirement Plans (cont’d)  Maximum contribution is ________ % of earned income subject to a maximum amount per year  Tax favored (advantaged) –Additions are made with ________________ dollars –All interest/dividends are _______ _____________  Most companies will match the first _______ % of each employee’s contribution  All balances must be ________ _______ to an IRA when you leave a job (to avoid taxes and _______ tax penalties)

5. Individual Retirement Accounts  Traditional IRA (very similar to a 401K or 403B plan) –All new contributions are made with ______________ dollars –All mutual funds gains are ________ _____________________ –All future withdrawals are _____________ _______________ –You must begin withdrawing money at age ____________ –Main use: __________________________________________  Roth IRA (introduced in 1997) –All new contributions are made with _________ _____ dollars –All mutual fund gains are __________ _______________ –All future withdrawals are __________ _______________ after age _______________ –You do not have to begin withdrawing money at age _________

6. Retirement Savings Strategy  Begin investing ____ % your first day at work –You will never ______ what you never ______ –You will not have to make tough __________ ______  Recommended Investment Strategy –First, invest in a ________ up to the matching pct –Second, invest in a ________ _________ up to the maximum amount allowed per year ($4,000 in 2005). –Third, go back and invest in your _________ up to the maximum amount allowed per year ($14,000 in 2005)

7. Retirement Savings Example  Your first job pays _____________ per year and you get a raise of ______________ per year thereafter  You contribute _________ % each month (Payroll Deduction)  Your employer matches the first _______ % contribution  You contribute _______ % for ________ years (ages 22–67)  Your final retirement “nest egg” will be: 401K + Roth IRA = Total $_________ + $__________ = $___________ ( 5% - pessimistic) $_________ + $__________ = $___________ ( 6% - conservative) $_________ + $__________ = $___________ ( 8% - avg last 30 yrs) $_________ + $__________ = $___________ ( 10% - optimistic)

8. Summary  Every person is eligible to invest in their future  You will secure your financial future if you just follow one simple rule…. Invest 10% beginning day one of your career  Don’t borrow from your 401K or Roth IRA!  College is still the best option if you want: –More initial career options –Higher starting salary –More career advancement opportunities