SAVING FOR RETIREMENT

Adam BreisterTaylor Montgomery

Luke SebaldMaggie Smith

“A growing percentage of middle-class Americans say they have saved so little for retirement that they expect to work into their 80s or even until they either get too sick or die, according to a recent survey.”

- CNN MONEY

Nearly half of middle-class workers said they are not confident that they will be able

to save enough to retire comfortably, according to a Wells Fargo survey of 1,000 workers between the ages of 25 and 75,

with household incomes between $25,000 and $100,000.

-Melanie Hicken

According to Boomers and Retirement, a new survey by TD Ameritrade, the average Baby Boomer is about a half-million dollars

short on retirement savings.And 74% of Boomers in the survey say they will have to rely heavily on Social Security in retirement. (The average Social Security

check, by the way, is $1,230 a month.)

- USA TODAY

“Saving early is key! I’m telling you, starting to save early in life is one of the

best things you can do for yourself”

JENNI RIEDEMAN - FINANCIAL ADVISOR RJFS

OVERVIEW

TRADITIONAL & ROTH IRAs

MUTUAL FUNDS & STOCKS

COMPOUND INTEREST (ACTIVITY)

401K

PENSION

SOCIAL SECURITY

HISTORY OF TRADITIONAL IRA

1974 – EMPLOYEE RETIREMENT INCOME SECURITY ACT◦PROVIDED TAX ADVANTAGE RETIREMENT PLAN

TO EMPLOYEES WITH NO PENSION

◦PERSERVED RETIREMENT ASSESTS AT EMPLOYEE TERMINATION OR LAY-OFF

◦BECAME UNIVERSALLY AVAILABLE IN 1981

TRADITIONAL IRA

EARNED INCOME – NO INCOME RESTRICTIONS

UNDER 70 ½

NO MORE THAN $5500 A YEAR UNDER 50

TAX DEDUCTIBLE

TAXES PAID ON EARNINGS WHEN WITHDRAWN

START TAKING OUT AT 59 ½

MUST START TAKING OUT BY 70 ½

HISTORY OR ROTH IRA

ROTH IRA

MUTUAL FUNDS

COMPOUND INTEREST

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a

deposit or loan. Compound interest can be thought of as “interest on interest,” and will make a deposit or

loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount.

- INVESTOPEDIA

ACTIVITY

401K

TO SAVE!!!!!!