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Please Do Now…

On a Word document, write a 1-page paper on what “investing” is. Think about the following questions.

1.What does “Investing” mean to you?

2.Why should people invest?

3.Who should invest?

4.What should you invest in?

5.At what age should you start?

6.How much money do you think you need to retire at age 65?

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WHY INVEST?

Question:According to Robert Kiyosaki, what is the difference between the rich and the poor?

Answer:The poor work for their money. The rich make their money work for them.

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WHY INVEST?

#1: You should invest to…

There are 5 basic reasons to invest.

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WHY INVEST?

#2: You should invest to…

5

WHY INVEST?

#3: You should invest to…

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WHY INVEST?

#4: You should invest to…

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WHY INVEST?

#5: You should invest to…

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WHY INVEST?

For Retirement: You’ll need 80% of your

earnings for when you retire.

CURRENT INCOME

PROJECTED NEEDX =80

%

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WHY INVEST?

For Retirement: The burden of planning

for retirement has shifted from the employers to the individual. (You can’t rely on Social Security and pensions).

Because Americans are living longer, there’s a good chance your retirement will last years or longer.

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WHY INVEST?

For Retirement: The burden of planning

for retirement has shifted from the employers to the individual. (You can’t rely on Social Security and pensions).

Because Americans are living longer, there’s a good chance your retirement will last 20 years or longer.

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WHEN SHOULD I START?

ADDING IT ALL UP

STARTING AGE

PERCENT SAVED

SALARY REPLACED

30 10% 70%

40 21% 70%

50 48% 70%

60 84% 70%

For each year you delay, you’ll have to save more of your yearly earnings to build up the same reserves.

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WHY INVEST?

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WHY INVEST?

Another Extraordinary Expense… a College Education!

• Private college tuition increases 5-13% per year!

• The cost of a public college education rose 6.5% from last year.

• Federal financial aid continues to decrease each year .

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WHY INVEST?

Average Annual Cost of a Public College Education

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WHY INVEST?

Average Annual Cost of a Private College Education

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CAN I AFFORD TO INVEST?

Investing is NOT only for rich people!Mutual funds can be purchased for as

little as $25 at a time.Invest 5% of your earnings to get

started.

At $40,000 per year income, that’s only $5.50/day. That’s enough to invest in a $2,000 IRA .

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CAN I AFFORD TO INVEST?

Five Tips to Reach Your Goals

2. Pay off your credit card balance. Then, put the monthly interest amount into a new investment account.

1. Put as much $ as you can into your retirement plan at work, or into an IRA.

3. Arrange to have a % of your paycheck invested automatically for you.

4. Invest any extra $ from gifts, bonuses or freelance jobs that come your way unexpectedly. 5. Reinvest any money you make from investments instead of spending it.

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QUESTIONS???