2. SEVEN FAT YEARS According to Social Security records, 85 out of 100 Americans have less than $250 when they reach age 65.

3. SEVEN FAT YEARS Take up the fifth part of the land of Egypt in the seven plenteous years. –Genesis 41:34 That the land perish not through the famine. –Genesis 41:36

4. SEVEN FAT YEARS Joseph Principle: Save during FAT years for lean years

5. SEVEN FAT YEARS Saving vs. Hoarding Genesis 41:46-57 Joseph saved 20% Luke 12:16-21 Rich man had to build bigger barns How are these situations similar? How are they different? Why was God pleased with one, displeased with other?

6. SEVEN FAT YEARS “…thou shalt lend unto many nations, and thou shalt not borrow.” –Deuteronomy 28:12b Biblical definition of investing is to lend.

7. SEVEN FAT YEARS Make Friends with Money “Make to yourselves friends of the mammon of unrighteousness.” –Luke 16:9 Educate yourself in money matters.

8. Generational Numbers 48 Million “Mature” 81 Million “Boomers” 38 Million “X-ers” Previous Generation finances the retirement of present generation. SEVEN FAT YEARS

10. Parents Income rose 524% (age 20-30) 49 workers support 1 retiree Average age at death 63 Peak earnings after kids gone Homes appreciated greatly (Buy Your Second Home First) Paid Debt with inflated $ You 34% 2.7 workers(2018) 90/95 still paying for kids 0-3% per yr. 1998 inflation 1.7%

11. SEVEN FAT YEARS How Much Do I Need? _____ 75% of gross _____ + adjust for inflation 4% per year _____ - subtract Social Security Earnings 1 (800) 772-1213 / www.ssa.gov _____ - Employer - Call Human Resource _____ - Gap Gap x 12 mo. Divided % return = savings needed. $2000 x 12 = 24000 divided 12% = 200,000

12. SEVEN FAT YEARS $200,000 @ 12% 20 years = $911.21 $200,000 divided $911.21 = $219.49 per month amount need to save $200,000 x 12% = $24,000 Not using principal

13. SEVEN FAT YEARS Three plans for making a million by age 65, assuming the money ears 12% a year Age 25, start investing $59 a month Age 40, put $10,000 down AND invest $493 a month Age 50, put $50,000 down AND invest $1,540 a month

14. Three Principles for Lean Years Spend less than you earn - 5 to 20% –Pastor $8000 per year income –$1,663,000 liquid assets Remember the cost of lost opportunity Consider cost of making a mistake

15. SEVEN FAT YEARS 401 (K) - Modern Day Pension 403 (b) Employer Match Move funds if job changes

16. SEVEN FAT YEARS 401(K) 403(b) ROTH IRA-no tax on earnings from IRA IRA-no tax on contribution to IRA Vehicle for investment NOT the investment

17. SEVEN FAT YEARS Current Contributions Pre-Tax Deferral Percent 7% of pay After-Tax Contribution Percent 0% of pay YTD Employee Contributions $3,282.44 YTD Company Contributions $4,274.63

18. SEVEN FAT YEARS Balances as of December 31, 1998 Your Contributions Since 1/1/88 to REVSOP: $20,861.94 Your Total REVSOP Balance: $157,677.55

19. SEVEN FAT YEARS Ways to invest IRA, 401(K), 403(b) Cash- CD, Money Market Annuity - contract with insurance co. Mutual Funds –very conservative - money market –conservative - money market, bonds, stocks –moderate - income producing stocks, large cap stocks –growth - large cap stocks, mid-cap stocks –aggressive - small cap stocks

20. SEVEN FAT YEARS $166 month automatic withdrawal = $2,000 per year $332 month = $4,000 per year for two

21. SEVEN FAT YEARS 98 3yr 5yr 10yr Washington Mutual (5.75%) 18 24 22 18 1-800-421-4120 Am. Century Inc/Grth 27 29 23 1-800-345-2021 Legg-Mason Value 47 41 32 21 1-800-577-8589 Janus Twenty 75 43 30 26 1-800-525-8983

22. Legg-Mason Value $10,000 Grew to $254,865 17yr

23. SEVEN FAT YEARS

24. SEVEN FAT YEARS Understanding Risk

25. SEVEN FAT YEARS $1,000 Deposited Each Year End of Year Values 5 yrs 10 yrs 15 yrs 20 yrs 18% 7,154 23,521 60,965 146,628 20% 7,442 25,959 72,035 186,688 22% 7,740 28,657 85,192 237,989 24% 8,048 31,643 100,815 303,601

26. SEVEN FAT YEARS Rule of 72 Divide 72 by rate of return = # of years to double money 72 divide 18% = 4 years 72 divide 15% = 4.8 years 72 divide 12% = 6 years

27. SEVEN FAT YEARS $130,000 -4 yr 260,000 Age 40 -8 yr 520,000 Age 44 - 12 yr 1,040,000 Age 48 - 16 yr 2,080,000 Age 52 - 20 yr 4,160,000 Age 56 - 24 yr 8,320,000 Age 60 - 28 yr 16,640,000 Age 64

28. SEVEN FAT YEARS BEGIN WITH THE NEXT PAY RAISE