1. You are NEVER too Young
to think about your Retirement
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 Most of you will NEVER have a pension
 Social Security benefits will not be enough to have a
comfortable retirement
 The quality of life you have in retirement depends upon you:
 How much you SAVE and when you begin SAVING
 How well you INVEST that savings
 Take advantage of works retirement savings plans (401k plans,
403b plans, etc.) or open and IRA
 START SAVING FOR RETIREMENT AS SOON AS YOU
START WORKING

2. Retirement Planning:
The Benefits of Starting Early—
You maximize the power of compounding
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Starting Early Procrastinating
Saving Method Invest $3,000 annually for Do not invest in first 8
(30 year time the first 8 years years.
horizon) No additional contributions Invest $3,000 annually
for the next 22 years
Total Amount $3,000 x 8 years= $24,000 $3,000 x 22= $66,000
Saved
Value at the $218,768 $148,268
end of 30 years
% of end value 11% 45%
of Savings
The hypothetical example assumes 8% annual rate of return and does not account for taxes.
Source: Social Security Web Site, www.ssa.gov, Social Security Bulletin vol. 68 No. 2, 2008

3. Every Little Bit Counts!
Saving just a few dollars a day can add up over time
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Who wants to be a millionaire?
Accumulated savings at the age of 65 when the investment begins at:
Savings per day Age 25 Age 35 Age 45
$1.00 ($365/yr) $102,120 $44,656 $18,039
$2.50 ($912/yr) $255,300 $111,641 $45,098
$5.00 ($1,825/yr) $510,600 $223,281 $90,197
$10.00 ($3,650/yr) $1,021,201 $446,562 $180,394
The hypothetical assumes and 8% annual return and does not account for taxes. Source: Goldman Sachs
http://www.bills.com/ways-to-save/

4. The Rule of 72
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 A simple and fairly accurate way to determine how long an
investment will take to double. Divide 72 by the rate of return on
your savings to see how long it will take to double your money:
Rate of Return Year to Double Your Money
2% 36 years
3% 24 years
4% 18 years
6% 12 years
8% 9 years
10% 7.2 years
Rule of 72 works for Inflation as well

5. The benefits of tax-free growth in your
employer’s plan or an IRA
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Total Assets $101,239
More savings
Or 53% more
$300,000
$293,630
$250,000
$192,391
$200,000
Total Assets
$150,000
$100,000 Assumes an 8% annual
return on a $2,400
$50,000 annual investment.
Assumes investor in
taxable account is in
$0 the 28% tax bracket.
Source: Goldman Sachs
Tax-Deferred Taxable

6. What would you say if I could guarantee you
a 100% return on your money?
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 Many corporate retirement plans will match you savings:
Corporate Employee Corporate Total Annual % Return on
Match Plan Savings Match Savings Your Initial
Amount Savings
2 to 1 $1,200 $2,400 $3,600 200%
1 to 1 $1,200 $1,200 $2,400 100%
0.5 to 1 $1,200 $600 $1,800 50%
Would you throw a $20 bill in the garbage?

7. The BEST RETIREMENT ADVICE ever given…
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 When you get a raise put half of it into your
retirement savings
 Increase the payroll deduction for your retirement
plan as soon as you get the raise
 Save the money before you get used to having it
 Last thought—consider at Target Maturity mutual
fund if it is offered—Target Date 2050, 2055 or 2060.

8. Questions?
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 Remember—start saving for retirement early
 The power of Compound Interest
 Take advantage of an employer 401K match
 The power of tax-free investing
 The Rule of 72
 You can be a Millionaire!