Education Week 2015
“Hope, An Anchor to the Soul”
Preparing for Retirement:
What You Can Do Now to Prepare
August 21, 2015
Bryan Sudweeks, Ph.D., CFA.
From the Marriott School of Management’s
“Personal Finance: Another Perspective” web site at
http://personalfinance.byu.edu
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Abstract
A prophet has counseled “Plan your financial future
early; then follow the plan.” Our goal is to help with that
counsel (and perhaps scare you a bit into action). We
start first with principals of personal finance, then myths,
steps, stages, and asset allocation in retirement, and then
selecting investment vehicles for saving and retirement.
The key is to learn the lessons from our retirement
planning challenges that the Lord wants us to learn and
then to take the steps necessary to get going. God will
help us prepare for retirement if we do our part, do it in
His way, and do it with His help.
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Objectives
• A. Understand key thoughts on personal
finance
• B. Understand some retirement planning myths
• C. Understand retirement planning steps and
stages
• D. Understand how to select investment
vehicles for retirement
• E. Understand how to motivate yourself
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Key Terminology
• Key terminology for this session:
• Asset classes: types of securities (baskets of similar assets)
• Examples: stocks, bonds, cash, international, T bills, gov’t bonds
• Asset allocation: how you invest in different asset classes
(or how you invest in the different baskets)
• Examples: 50% stocks (40% large, 10% small), 50% bonds/cash
• Investment vehicles: tax framework with tax advantages
(shopping carts where you put your assets/groceries)
• Examples: Roth IRA, 401k, Roth 401k, Simple IRA
• Financial assets: publically traded assets (groceries)
• Examples: stocks, bonds, mutual funds, index funds, ETFs
• Retirement Planning Stages: Time periods in planning
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• Examples: Accumulation (before), retirement, distribution4(after)
A. Key Thoughts on Personal Finance
• President Ezra Taft Benson counseled:
• Plan for your financial future. As you move
through life toward retirement and the decades
which follow, we invite all . . . to plan frugally for
the years
following
full-time
employment. Be even
steps
to retirement
planning,
more cautious . . .about “get-rich” schemes,
mortgaging homes, or investing in uncertain
ventures. Proceed cautiously so that the planning of
a lifetime is not disrupted by one or a series of poor
financial decisions. Plan your financial future
early; then follow the plan. (italics added, “To the
Elderly in the Church,” Ensign, Nov. 1989, 4).
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Thoughts on Personal Finance (continued)
• 1. Personal finance is not separate from the
gospel of Jesus Christ--it is part of the gospel
of Jesus Christ
• It encompasses each of the four-fold missions of
the church:
• To perfect the saints
• To preach the gospel
• To redeem the dead (through service)
• To take care of the poor and needy
• It teaches us to plan for the future. “Let the
solemnities of eternity rest on your minds” (D&C
43:34)
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Thoughts on Personal Finance (continued)
• 2. Personal finance is just as much a part of the
gospel as is family history, food storage,
employment, welfare, and other areas
• The responsibility is for us to be wise stewards and
plan for the future:
• For it is expedient that I, the Lord, should make
every man accountable, as a steward over
earthly blessings, which I have made and
prepared for my creatures (D&C 104: 13).
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Thoughts on Personal Finance (continued)
• 3. We must feast upon the words of Christ
which shall tell us and show us all things we
should do
• Be humble. “Let him that is ignorant learn wisdom
by humbling himself and calling upon the Lord”
(D&C 136:32).
• Do your homework. “Study and learn, and become
acquainted with all good books, and with languages,
tongues, and people” (D&C 90:15).
• Listen to the Spirit. “Feast upon the words of Christ,
for behold, the words of Christ will tell you all
things that you should do” (2 Nephi 32:3).
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Thoughts on Personal Finance (continued)
• 4. The only things that are truly ours are our
minds and our will. Elder Neal Maxwell said:
• The submission of one’s will is really the only
uniquely personal thing we have to place on God’s
altar. The many other things we “give,” brothers
and sisters, are actually the things He has already
given or loaned to us. However, when you and I
finally submit ourselves, by letting our individual
wills be swallowed up in God’s will, then we are
really giving something to Him! It is the only
possession which is truly ours to give! (italics
added, “Swallowed Up in the Will of the Father,”
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Ensign, Nov. 1995, 22.)
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B. Myths of Retirement Planning
• There are a number of retirement planning
myths which are very damaging
• In retirement planning, we must do what we can
based on where we are today to prepare for the
future ahead
• Any preparation we do now will help us in the
future
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Myth 1. Retirement Planning is Easy
• It’s not hard to plan for retirement
• They don’t have to do anything
• They just save a little money each year
• Retirement will take care of itself—don’t worry, be
happy
• The reality is different
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Reality 1. Retirement Planning Takes Sacrifice
• To retire at your current level of income will
require a significant level of sacrifice
• You will need to sacrifice what you want now for
something better in retirement
• You need to live on a budget
• You likely need to curtail spending
• You likely need to save a significant portion of
your income for your later years
• Use Learning Tool 6: Retirement Planning Needs
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Myth 2. I can spend my way to retirement
• They can spend our way to a successful
retirement
• Because they pay their tithing, everything else will
work out
• They don’t have to save or budget
• They can continue buying nice cars, big houses,
and spending on expensive things with debt
• They don’t have to get out of debt—they can do
that later, including pay off their houses after
retirement
• The reality is different
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Reality 2. You Must Save (continued)
• The most important things you can do now to
save for retirement is to do the things I have
talked about all this week. They are:
• 1. Determine your goals
• What do you want to accomplish with your life
• What are the things most important to you?
• How do you want to live your life?
• What standard of living do you want?
• Are you willing to work to achieve it?
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Reality 2. You Must Save (continued)
• The most important things you can do now to
save for retirement is to do the things I have
talked about all this week. They are:
• 2. Decide how much you will need
• This will require accountability and planning
• How much have you saved?
• How long until you retire?
• How long will you be in retirement?
• What standard of living will you need?
• How will you invest?
• I recommend using Learning tool 6: Retirement15
Planning Needs
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Reality 2. You Must Save (continued)
• 3. Get on a budget and start saving MORE
• I recommend 20% for young people or more if
you are closer to retirement (20%+)
• Research says student need to save 15% to retire
comfortably (70%, Center for Retirement Research)
• Dave Ramsey recommends a minimum of 15%
plus additional for kid’s education
• 4. Get and stay out of debt
• Reduce your expenditures and get out of debt
• Try to pay off your house before you retire
• Invest wisely—shortcuts do not work
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Reality 2. You Must Save (continued)
• 5. Decide if you will help with your children’s
missions and education
• Do not put your retirement at risk to help with
your children’s education
• Do not borrow against your retirement assets
or your home to help with children’s
education expenses!
• 6. Get serious about retirement planning
• Get the budget in place
• Develop a retirement plan
• Reduce both fixed and variable expenses
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• Save as much as you can
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Myth 3. Social Security is Enough
• Some think that they will be able to continue
their current life style with only Social Security
• They don’t have to get out of debt or prepare for
retirement because the government will do it all
• They feel it is the government’s responsibility, not
theirs, to fund their retirement
• The reality is different
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Reality 3. You are Responsible
• Social security was never intended to be the
entire retirement program for working people
• It was intended to cover about 43% of retirement
needs—not 100% as many people expect
• According to Social Security, the average fully
insured worker, Wanda Worker, at full
retirement age of 67 years, would receive
$18,648 a year
• While this is an estimate, it will be hard to
survive on $18,648 a year
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Myth 4. Social Security is Secure
• Some expect that the benefits promised from
social security are guaranteed and will always
be there
• Every dollar that was promised by the government
is secure and will be there
• After all, it is the government. They can always
print more money
• The reality is different
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Reality 4. Social Security is a Promise
• Social security is a promise
• However, financial realities are making tough
choices (the government is spending 40% more
than taxes bring in)
• Entitlement spending is the fastest growing part
of the governments budget
• The Social Security system was created for a
different time and problem
• Starting in 2015, it will be paying more in
benefits than it collects in taxes
• In 2037, the Social Security Trust Fund will
only be able to pay out about 78 cents for each 21
dollar of scheduled benefits
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Myth 5. My Kids will Take Care of Me
• Some feel that they do not have to prepare for
retirement because their kids will take care of
them
• It is the kids responsibility to care for their parents
• Isn’t that what it means when it says “honor thy
father and thy mother”?
• Kids must give parents all the money they need
for retirement—money the parents were not
willing to sacrifice and save for themselves
when they were in their working years
• The reality is different
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Reality 5. It’s Tough for Your Kids Too
• Your children are living in an environment that
is equally challenging for them
• It will be a challenge for them just to support
themselves and their families
• Economic growth and investment returns will
likely be lower than in previous years
• They are responsible to support their own
families and to prepare for their own retirement
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Myth 6. You Need $2 Million at Retirement
• Some think you need at least $2 million saved
at retirement
• Unless you have that $2 million saved at retirement,
you are going to have to continue to work and never
retire
• The reality is different
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Reality 6. It Depends. . .
• Retirement needs are a function of:
• Your fixed expenses at retirement:
• These are expenses that will not change in the
short-term for health, home, utilities, and debt.
We need to reduce these expenses
• Your variable expenses at retirement
• These expenses are changeable depending on our
wants and needs, for food, gas, phone, etc.
• Other expenses at retirement
• These are optional expenses such as costs for
visiting grandkids, vacations, golf and other
retirement activities
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It Depends (continued)
• What are your goals in retirement?
• Have you thought about them?
• Have you written them down?
• Develop a lifestyle before you retire that you can
continue during retirement
• Have you determined what it would take to
continue this lifestyle every year?
• Have you taken inflation into account? And
earnings on your savings? When will you
retire?
• “I tell you these things because of your prayers;
. . . but if ye are prepared, ye shall not fear
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(D&C 38:30).
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Myth 7. I Will Retire at Age 62
• Some consider that they will retire at age 62,
regardless of their debt situation and how much
money they have saved for retirement
• That is the age the government says they can retire
(i.e. 5 years before full retirement age) and they are
going to retire at that age regardless
• The reality is different
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Reality 7. Are You Prepared to Retire then?
• Yes, you can retire at age 62, five years before
Social Securities’ full retirement age
• However, you will receive 30% less each month for
the rest of your life from Social Security than you
would have had you retired at full retirement age
• Using Wanda Worker as an example, instead of
$18,648 a year, you would receive $13,054
• Can you live on $13,000 a year?
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C. Understand the Steps/Stages of Successful
Retirement Planning
• Step 1. Know yourself and your goals
• Understand your personal and family goals
• Know what you want out of life
• Write down your personal and family goals
• Understand what kind of retirement you want
• Determine the things you want to do in
retirement
• Determine the type of retirement you want
• Be willing to work toward those goals
• Determine how much money you will need each
year in retirement
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Steps and Stages (continued)
• Step 2. Understand the retirement investment
vehicles available and how use them wisely
• Understand and use tax-advantaged retirement
vehicles to your advantage:
• Employer Qualified Plans: 401(k), Roth 401(k),
403(b), Roth 403(b), or 457 retirement plans for
the employee
• Individual and Small Business Plans: IRA’s
(Roth and traditional), Keoghs, SEP’s and
SIMPLE’s for the self-employed
• Government Plans: Social Security
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Steps and Stages (continued)
• Step 3. Choose wisely the financial assets for
those vehicles and invest at a risk level you are
comfortable with
• Determine a risk level you are comfortable with and
invest accordingly
• Choose the financial assets which will earn the
highest after-tax returns to reach your goals
consistent with your tolerance for risk
• Follow the principles of successful investing
• Do not invest beyond your tolerance for risk (see
the Risk Tolerance test from Monday’s class on
Beginning Investing: 10 Steps to a Better Portfolio31
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Steps and Stages (continued)
• Step 4. Determine how much you will need at
retirement
• 1. Estimate how much you need at retirement
before-tax
• 2. Estimate your income at retirement from Social
Security and defined benefit plans
• 3. Determine how much you have accumulated
• 4. Estimate total retirement needs after inflation
• 5. Determine the contribution or reduction to your
retirement plans from your home
• 6. Determine how much you will need to save each
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month and start saving today (see LT 06 )
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Steps and Stages (continued)
• Step 5. Develop a good retirement plan, write
it carefully, and follow it closely
• Live on a budget and save a percentage of your
income for retirement (Dave says 15%, I say 20%)
• Set goals as to the percent of your income you will
save each month for retirement (and increase it!)
• Check yourself regularly to make sure you are on
track with your savings goals
• Monitor performance, rebalance, and re-evaluate
your retirement portfolio as needed consistent with
your level of risk
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Steps and Stages (continued)
• Step 6. Start today!
• Be diligent in following your budget and setting
aside money for retirement
• The longer you wait to start saving for retirement
each month, the more money you will need each
month for the same amount
• Invest wisely and in the most advantageous
retirement investment vehicles
• Have your money earning money to help you reach
your retirement goals
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Steps and Stages (continued)
• There are three stages to retirement planning:
• Stage 1: Accumulation
• This stage begins when you start work and is the
time where you accumulate assets which you
will later use for retirement
• You need to develop a plan for this stage on
how you will save money for retirement in
the years before you retire
• You should get on a budget and save a
percent of your income each month (10%
minimum and 20% recommended)
• But you must start now (or sooner)
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Steps and Stages (continued)
• Accumulation strategies could include:
• Develop and live on a budget and save 15% for
retirement, always getting the company match first
• Save 20% of every dollar you earn, with 15% into
the company 401k (or Roth 401k) before the match,
3% into the taxable account for retirement, and 2%
into children’s mission and education funds
• Save 15% of every dollar, with 10% into the Roth
IRA for both you and your spouse (before the
match), 3% into education IRAs for the children,
and 2% into mission accounts for the children
• Invest in Roth accounts while you are young and 36
when your tax rates are low
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Steps and Stages (continued)
• Stage 2: Retirement or Annuitization
• This stage begins when you retire
• It is your plan on how your assets will be
distributed at retirement
• Your goal is to have sufficient assets for
your lifetime to enable you and your spouse
to live like you planned
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Steps and Stages (continued)
• Retirement strategies might include:
• Calculate a minimum acceptable level of retirement
income, and annuitize that amount (if you have
sufficient assets). The process is to:
• a. Calculate your amounts from Social Security
and any defined benefit plan(s)
• b. Determine your minimum amount needed to
live comfortably, and
• c. Take a percentage of your assets at retirement
(if sufficient) to purchase an immediate annuity
to give you the minimum amount needed (b-a)
to receive your minimum acceptable level of
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income
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Steps and Stages (continued)
• Stage 3: Distribution/disposition/decumulation
• This stage begins after you have retired
• This is your plan as to how best take
distributions from your remaining retirement
and taxable accounts to minimize taxes and
maximize the availability of your assets
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Steps and Stages (continued)
• Distribution strategies might include:
• Set up a framework where you will not outlive your
assets. Recommendations include:
• Take out maximum distribution of 3.6% of total
assets each year, or only take out maximum
earnings from investments of previous year
• During your later years which your income is less,
i.e., during missions, transfer money from your taxdeferred to tax-eliminated accounts
• Use this time to move assets into Roth accounts
with as little tax consequences as possible
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D. Understand Selecting Investment Vehicles
• What is the process of selecting investment
vehicles?
• It is the process of understanding which types of
investment vehicles will help you achieve your
goals the fastest
• Why should we learn it?
• Investment vehicles have different benefits, i.e.,
due to matching (free money), tax avoidance, tax
deferral, or tax-efficient and wise investing
• The wise use of correct investment vehicles will
help you save more money to help you reach your
financial goals faster
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Selecting Investment Vehicles (continued)
• What is the difference between investment
vehicles and financial or investment assets?
• The investment vehicle is the tax-law defined
framework that has specific tax advantages, i.e.,
401k, 403b, Individual Retirement Account (IRA),
SEP IRA, Roth IRA, Roth 401k, etc.
• It is like the shopping cart in the grocery store
• The financial assets are the securities that are
invested in by the vehicles, i.e., stocks, bonds,
mutual funds, REITs, MMMFs, CDs, etc.
• It is like the groceries you put in your shopping
cart
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Selecting Investment Vehicles (continued)
Select Investment Vehicles for 2015 (before catch-up)
TaxTax- Maximum
Plan
deferred eliminated Amount
401-k
Y
$18,000
Roth 401-k
Y
18,000
403-b
Y
18,000
Roth 403-b
Y
18,000
457
Y
18,000
SEP IRA
Y
53,000
SIMPLE IRA Y
12,000
IRA
Y
5,500
Roth IRA
Y
5,500
Education IRA
Y
2,000
529 Plans
Y
>416,000 p.c.
For Employees of:
Businesses w/plans
Businesses w/plans
Non-profit, tax-exempt
Non-profit, tax-exempt
State/municipalities
Small businesses
Small businesses
Individuals
Individuals
Individual Education
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Individual Education
Selecting Investment Vehicles (continued)
• What is the priority of money?
1. Free money
• Matching money that is made available by your
company to encourage participation in company
retirement plans, i.e., 401k, Roth 403b, Keogh, etc.
• Money made available through tax benefits, i.e.
529 plan contributions
 What are the risks?
• You must stay at the company a certain number
of years to become fully vested, i.e., to be able
to take full ownership of these funds, or use the
funds for education expenses for 529 plans
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Selecting Investment Vehicles (continued)
2. Tax-advantaged money
• a. Elimination of all future taxes
• This money can be used at retirement (or for
education) without penalty and without taxes,
i.e., a Roth IRA/410k/403b for retirement, and
529 Funds and Education IRA for education
• In addition, with the Roth, you can take the
principle out without penalty at any time
What are the risks?
• You must be 59½ to receive earnings
• 529 Funds, Education IRA, and EE/I bonds
must be for qualified expenses to be tax-free45
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Selecting Investment Vehicles (continued)
b. Tax-deferred money
• This money has the ability to be invested beforetax, with principle and earnings taxed only at
retirement (IRA, SEP IRA, etc.)
 What are the risks?
• You must be 59½ to take distributions. If you
take the funds out before retirement, there is a
10% penalty and funds are taxed at your ordinary
income tax rate for both federal and state
• This money converts long-term capital gains into
short-term income for tax purposes
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Selecting Investment Vehicles (continued)
3. Tax-efficient and wise investments
• This is money that is invested tax-efficiently and
wisely, consistent with the investment principles
discussed earlier
• What are the risks?
• Earnings are taxed consistent with the assets
invested in
• You need to take into account the tax and
transaction cost implications of whatever you
invest in
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Selecting Investment Vehicles (continued)
• How do you invest tax efficiently?
• 1. Know the impact of taxes
• 2. Look to Capital Gains—defer earnings and
taxes to the future
• 3. Minimize Turnover and Taxable Distributions
• 4. Replace interest income with stock dividends
• 5. Invest tax-free
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Selecting Investment Vehicles (continued)
• How do you prioritize investment vehicle
choice?
• Some investment vehicles are higher on the priority
list than others, but they also have lower
contribution amounts (i.e., $5,500 for the Roth in
2015 versus $18,000 for the 401k). What should
you do?
• Use the highest priority money first, and then
next highest, etc. until you have utilized all your
available investment funds
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Selecting Investment Vehicles (continued)
• Where should you put different types of
financial assets?
• Retirement Accounts: 401k, IRA’s, 529 Funds, etc.
• Financial assets in which you trade actively
• Taxable bonds, and high turnover funds
• You do not pay taxes until you take out
funds
• Taxable Accounts: investment portfolios
• Stocks and mutual funds with a buy and hold
strategy
• Tax-free bonds and tax-efficient index funds
• You pay taxes on fund distributions yearly
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E. Understand How to Motivate Yourself
• It is easier to understand what we should do to
prepare for retirement—it is much harder to do
it.
• Following are few ideas to help live the gospel and
save for your children’s education and missions
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Live It (continued)
• 1. Understand doctrines
• Elder Packer said:
• True doctrine, understood, changes attitudes
and behavior. The study of the doctrines of
the gospel will improve behavior quicker
than a study of behavior will improve
behavior (Boyd K. Packer, “Little Children,”
Ensign, Nov. 1986, 16).
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Live It (continued)
• The doctrine is that we have been
commanded to live on a budget, save for a
time of need, and take care of ourselves and
our families
• Living wisely and preparing are simply part of
the gospel of Jesus Christ
• Obeying is no longer a question of money, but a
question of faith and duty
• These are not temporal commandments (D&C
29:35)
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Live it (continued)
• 2. Catch the vision
• A. Of who you are
• You are a child of God with great potential (Gal.
3:26). As such, you can do what is necessary
• “No doctrine is more basic, no doctrine
embraces a greater incentive to personal
righteousness . . . as does the wondrous
concept that man can be as his Maker”
(Bruce R. McConkie, The Promised
Messiah: The First Coming of Christ (Salt
Lake City: Deseret Book, 1978), 133).
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Live it (continued)
• B. Of what you want
• Do you know what you want?
• Have you written down your personal and
family goals?
• How much do you want to save before you
retire?
• Will you contribute to your children’s
missions and education? If so, how much?
• How much will you need to save each month
to do these things?
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Live it (continued)
• C. Of what you can do
• “With increased vision comes increased
motivation” (Ted R. Callister, “The Power in the
Priesthood in the Boy,” Ensign, May 2013).
• “Once a person is determined to help
themselves, there is nothing that can stop them “
(Nelson Mandela).
• Whatever the mind of man can
conceive, and believe, it can
achieve (anonymous).
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Live it (continued)
• 3. Decide to decide
• Make the decisions now and commit to them!
• Decide now what you will and will not do to
prepare for retirement, and then do it and be done
with decision once and for all
• Follow a prophet who said to “decide to
decide”
• Seek the Lord’s help in making these decisions
• There is no one who loves you more
• Commit and follow through
• “Commit thy way unto the Lord; trust also in
him; and he shall bring it to pass” (Psalms 57
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Live it (continued)
• President Spencer W. Kimball said:
• We hope we can help our young men and young
women to realize, even sooner than they do now,
that they need to make certain decisions only once.
. . . We can push some things away from us once
and have done with them! We can make a single
decision about certain things that we will
incorporate in our lives and then make them ours—
without having to brood and re-decide a hundred
times what it is we will do and what we will not do.
. . . My young brothers [and sisters], if you have not
done so yet, decide to decide! (Spencer W.
Kimball, “Boys Need Heroes Close By,” Ensign, 58
May 1976, 45).
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Live it (continued)
• 4. Do it willingly (because we have to)
• The prophet Joseph Smith, on his way to Carthage,
knew that he would not return. ”I am going like a
lamb to the slaughter, but I am calm as a summer’s
morning; I have a conscience void of offense
towards God, and towards all men. . . . And it shall
yet be said of me—he was murdered in cold blood
(D&C 135:4).
• He brought his will in subjection to the will
of Heavenly Father
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Live It (continued)
• Isn’t that a purpose of life, to bring our wills in
line with the will of the Father?
• We will either “bend the knee” willingly of our
own free will and choice, or we will be compelled
to do it when He comes again (Mosiah 27:31)
• Either way, we will come to recognize Christ
• How much better it is to do these things
willingly because we have faith in Christ and are
seeking to obey His commandments
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Live it (continued)
• 5. Share your goals with your children (and
others)
• Let others know what you are doing
• Embarrassment sometimes is more powerful
than guilt in motivating us to accomplish more
• Share your retirement and savings goals with
family and friends
• Let them know of your successes and
failures
• As we let others know what we desire to
accomplish, they can help us to accomplish
our goals
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Live it (continued)
• 6. Remember the promised blessings:
• The Lord will stand by you (D&C 68:6)
• None shall stay you (D&C 1:5)
• The Savior will go with you and be in your midst
(D&C 49:27)
• Nothing shall prevail against you (D&C 32:3)
• Power shall rest upon you (D&C 39:21)
• He will uphold you (D&C 93:51)
• You shall have greater treasures than the treasures
of the earth (D&C 19:37-38)
• He will take care of your flocks (D&C 88:72)
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Summary
• A. Understand four key thoughts on personal
finance
1. Personal finance is not separate from the gospel
of Christ—it is the gospel
2. Personal finance is just as much a part of the
gospel as family history, food storage, etc.
3. We must feast on the words of Christ and live
worthy of the Holy Ghost who will help us
with our personal finances
4. The only things that are truly ours are out
minds and our wills
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Summary (continued)
• B. Understand the myths of retirement
planning
•
•
•
•
•
•
•
1. Retirement planning is easy—its not
2. I can spend my way to retirement—you can’t
3. Social Security is enough—likely not
4. Social Security is secure—it’s a promise
5. My kids will take care of me—really?
6. You need $2 million saved at retirement--really?
7. I will retire at age 62—really?
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Summary (continued)
• C. Know the steps and stages of successful
retirement planning
•
•
•
•
•
•
•
1. Know yourself (your budget, goals)
2. Understand the retirement vehicles available
3. Choose wisely the assets for those vehicles
4. Know the retirement planning steps
5. Develop a good retirement plan and follow it
6. Start today
Stages of retirement
• Accumulation stage, retirement stage, and
accumulation state
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Summary (continued)
• D. Understand how to select investment
vehicles for saving and retirement
• 1. Free money
• Matching money from your employer or from
tax benefits
• 2. Tax advantaged money
• A. Tax eliminated money (i.e., Roth vehicles)
• B. Tax deferred money (traditional IRA/401k)
• 3. Tax efficient and wise investing
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Summary (continued)
• E. Understand how to motivate yourself
• 1. Learn doctrine
• 2. Catch the vision
• a. Of who you are
• b. Of what you want
• c. Of what you can do
• 3. Decide to decide
• 4. Do it willingly, because you want to
• 5. Share your savings goals with your children
• 6. Remember the promised blessings
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Summary (continued)
• Elder M. Russell Ballard said:
• There are no shortcuts to financial security. There
are no get-rich-quick schemes that work. Do not
trust your money to others without a thorough
evaluation of any proposed investment. Our people
have lost far too much money by trusting their
assets to others. In my judgment, we never will
have balance in our lives unless our finances are
securely under control (“Keeping Life’s Demands
in Balance,” Ensign, May 1987, 13.)
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