1 / 17

Secure Your Future: A Beginner's Guide to Investing in Retirement

Learn about investing for retirement, comparing options like Traditional and Roth IRAs, 401(k)s, and managing risks to maximize returns. Find out how taxes impact investments and where to start your journey to financial security.

brun
Download Presentation

Secure Your Future: A Beginner's Guide to Investing in Retirement

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investing for Beginners Justin Gilly RVA Financial

  2. Now vs Later • Jim invests $100 a month ($1,200/year) at age 25 for 10 years at 10.00% compounded monthly (compounding continues after age 35) • Sam invests $100 a month ($1,200) at age 35 for 30 years at 10.00% compounded monthly Who has more money at age 65?

  3. Time Is Money

  4. Dow Jones Industrial Average

  5. Retirement Social Sec. Personal Pension The 3 Legged Retirement Stool

  6. Where Can You Put Your Money? Debts (a good thing) • Savings • bank holds your money • CDs • bank holds your money, time specified • Money Market • short term • Bonds • “loan”, lower risk (usually)

  7. Where Can You Put your Money? Securities • Stocks • “ownership”, risk varies • Mutual Funds • “pool”, risk varies • ETF’s • “index”, risk varies

  8. What Programs are Available for Retirement Savings? • What are they, how do they work, and what are the underlying investments • Traditional IRA • Roth IRA • 403 (b) • 401 (k)

  9. IRA • After-Tax Investment up to $5,000/year • Account grows tax deferred • Taxes paid once distributions are taken • 10% IRS penalty assessed before age 59 1/2 • Must start distributions at age 70 1/2 • Equal distributions under Rule 72(t) • Some withdrawals allowed

  10. Roth IRA • Tax-free earnings and distributions after five years and age 59½ • Maximum annual contribution of up to $5,000 • Contributions permitted after age 70½ • Distributions not required after age 70½ • Penalty-free withdrawals prior to age 59½ under certain circumstances

  11. 403(b) • Schools, colleges, state agencies • Immediate vesting • 2009 max contribution $15500 • Portable

  12. 401(k) • Employer sponsored • Matching/vesting schedules • 2008 max contribution $15500 • Portable?

  13. How To Manage Risk • Consult an investment professional • Match your investments with your time frame • Pick funds managed by experienced professionals • Invest regularly - in good times and bad • Diversify!

  14. How Do Taxes Affect Investing? • Tax Deductible Investing options • Tax Deferred Investing options • Marginal Tax Brackets

  15. How To Get Started. • Talk to an advisor • Start doing research • Tips to help get started • Begin planning • 401(k) - go to employer • IRA - Bank/ mutual funds/ETFs • do own investments • T. Rowe Price, Vanguard, Fidelity, etc • use a financial advisor

  16. Start Now Where to Invest Retirement Diversify Retirement Taxes How to Get Started Advisor or Not Cost Wrap Up Summary Points

  17. Questions?

More Related