1. AIM Why is it important to invest for retirement? DO NOW What are different sources of income we can use for living expenses after retirement? INVESTING FOR RETIREMENT

2.  IRA  401(k)  403(b)  Pensions  Social Security  Annuities SOURCES OF RETIREMENT INCOME

3. What is a “nest egg” when referring to one’s finances?

4.  At what age should you start investing for retirement?  When you are young, how should you approach investing? Are you willing to invest in more risky vehicles?  What types of investments would you make?  As you get older, how should you approach investing?  What types of investments would you make?

5.  With employer retirement plans, you can use “pre- tax” money to make your investments.  Reduces the amount of income tax you pay today  You will have to may taxes when you withdraw the funds in the future PRE-TAX INVESTMENTS PRE TAXAFTER TAX $1,000 income $50 invested in IRA Pay income tax on $950 $1,000 income Pay income tax on $1,000 $50 invested in IRA