Christian Perspective

Ecclesiastes 5:10Whoever _____ _______ never has ______ enough; whoever _____ ________ is never satisfied with his income. This too is meaningless.

Hebrews 13:5Keep your lives free from the _____ ___ _______ and be content with what you have…

I Timothy 6:10For the ____ __ ______ is a root of all kinds of evil.

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 13:11Dishonest money dwindles away, but he who _______ _______ ________ by _______ makes it grow.

Proverbs 13:22A good man _______ ___ ______________ for his children's children, …

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 _________ _______

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)

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 _________

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)

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)

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