Tyler - We All Want to Retire: So When Do We Start?

Thanks for watching my presentation. Here are some things I would like to know from you: Have you given any thought to retirement, yet? If so, what have you considered? If not, do you have any thoughts or questions I can help you with?

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Informative Speech Revised Final Draft, 10/26/2011 

(1.) Tyler Berridge

(2.) We All Want to Retire: So when do we start?

(3.) To inform

(4.) As a result of my presentation, my audience will be able to explain how to save for retirement.

 

INTRODUCTION

[ppt: cover slide] Good morning everyone.  The governmental social security website tells us that the average retirement age in the U.S. is now up to 67.  Meanwhile, according to the smart money advice website, out of every 100 people that start working at age 25, only four of those have adequate funds for retirement when they reach the age of 65. The money watch website, says that 10 to 20% of people nowadays have had to come out of retirement because they didn’t have the funds to stay there. And it projects that 45% of generation x-ers will not have enough saved to stay in retirement. Now, we all want to be able to retire when we get older. The question is, when do you plan to start saving for it?  I feel that, especially with today’s economy, retirement is more important than ever. So I have researched what we can do to start planning to save as soon as possible.  Today, I will be talking to you about how to save money for retirement. [ppt: slide with three points listed]  Ideas to help save for retirement are to set up a 401k, create an individual retirement account, and make smart investments.

BODY

 I. 401k’s

One idea that is good to plan for retirement is setting up a 401k.  401k’s are set up through your employer and put a certain percentage of your income into them. Which businesses offer them and which ones don’t, varies. It is important to look into it when deciding where you want to start your career.

A. Advantages to 401k’s.

[ppt: 401k slide]  Employers can limit how much income is placed in them, but the money is placed in the account before taxes are calculated. It also is saved before you have a chance to use the money for other things. This part is important for people who spend a lot.

B. Employer’s Contributions

Also, the employer lends to the account. This adds that much more money to your retirement funds. For example, the money watch section of CBS tells us that  IBM compensates employees’ contributions dollar for dollar. This is not a practice of a majority of businesses, but there are a few that do. The most common compensation percent is 50%, which is still really good. Once the money is placed in the 401k, it is kept in custodial accounts to protect it in case your employer is forced to declare bankruptcy.

401k’s are, principally, a great thing to use. Another great thing to use for retirement is an IRA.

II. IRA’s

[ppt: IRA slide] Another good way to save for retirement is to start an individual retirement account. IRA’s are accounts that you can put money in, monthly, to assist in building up your funds.

A. General IRA information.

If you are under the age of 50, you can contribute up to 5,000 dollars per year in to an IRA. If you are over the age of 50, you can contribute up to 6,000 dollars per year. There are taxes on the money you put into IRA’s.

B. Roth vs. Traditional

 However, if you choose a traditional IRA, the money will not be taxed when you contribute, only when you withdraw. If you have a good enough income, a Roth IRA is better because the money is taxed when you put it in, rather than when you withdraw. This keeps you out of a higher tax bracket. Also, the money you contribute to your IRA has to come from a job.

 

IRA’s are important for STARTING retirement and help you in retirement. What you can use to help STAY in retirement is investing.

 

III. Investments

[ppt: Investment slide]  A third thing you can do to help save for retirement is to make investments. Investing money in the stock market is a great way to increase your funds.

A. Income after Retirement

Not only does it provide good funds while you are currently employed, it provides funds after you retire as well. So even when you are retired, you are still getting money and can be a little more secure about your expenses once you are no longer working.

B. Mutual funds.

When investing, you buy stocks in whatever it is you so choose. Once you have done that, the amount you gain or lose depends on how the company, corporation, etc. does. If it does well, the stock goes up and your gains increase. If the company does poorly, its stock goes down and you investments decrease. Therefore, it is important to know as much as possible before choosing where you place your investments. One way to avoid to avoid losing a lot of money is to invest in mutual funds. Mutual funds take you r money and place it in stocks of several companies, rather than just one. That way, if one of these goes bad, your losses are minimal. This is the way I would definitely suggest for young people just starting out and learning about investing.

1. You can learn a lot about investing online. There are tons of websites that offer help, tutorials, ideas, etc. about how to begin investing.

2. Another way to help with investment ideas is to use professionals that deal specifically with investing. They are trained to know everything there is to know about the stock market and investing, so getting their help is never a bad idea. You do, however, have to pay them commission on any earnings you make. The percentage of that commission depends on which broker you use.

CONCLUSION

[ppt: conclusion slide]  Retirement is a big step, in life. Many people worry about when or even if they will be able to. There are ways, however, to help plan and save for retirement. Some of these ideas are setting up a 401k, creating an IRA, and investing money. Setting up a 401k is beneficial because it provides a source of funds that is contributed to by not only you, but your employer as well. The money is safe and is put away before taxes can be calculated into your income. Creating an IRA can help because it is an account for saving money specifically for retirement. This can aid tremendously in reserving funds to help you retire on time. Lastly, investing can help you build funds for retirement. It provides income, not only while you’re in the work force, but also when you withdraw from it.  Don’t become one of those people that finally gets to retirement and ends up having to come out of it. I know a retired engineer that still does jobs to keep money coming in. He is technically still retired; however, he needs the jobs to continue to bring in revenue. Find ways, like the engineer, to save up and to keep money coming in after you retire. Income while you are retired is very important to staying that way, after all.
REFERENCES

 Miniter, Paulette. 2009, March 9. The Best 401k’s in the business. Retrieved from

http://moneywatch.bnet.com/retirement-planning/article/check-out-the-best-401ks/277183/.

(n.d.) Retirement Age. Retrieved from http://ssa.gov/pubs/ageincrease.htm.
(n.d.) Top 10 Ways To Prepare for Retirement. Retrieved from      

http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html.

Roth IRA. 2009. Open Roth IRA. Retrieved from: http://www.rothirarules.com/.

Tracey. (n.d.) Can you retire before you die? Retrieved from

http://www.smartmoneyadvice.com/retirement-statistics.html.

 

 

 

 

 

 

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