Retirement
Planning
Writing Prompt

Write one paragraph about the kind of
lifestyle you would like to have when you
retire. Include ideas on how much you
think it will cost to maintain this lifestyle.
(Do you want to live on the amount of money you have been
used to, more than they are used to, or less then they are used
to?)

Write a second paragraph on where their
income will come from after retirement.
How much money will you
need when you retire?
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Many people stay healthy and
active for 20 years or more after
they retire.
If you start planning and investing
soon enough, you can spend those
years enjoying yourself instead of
worrying about paying the bills.
How much money will you
need when you retire?

One of the basic sources of
retirement income is Social Security.


Social Security Benefits Calculator
Could you live comfortably on Social
Security benefits only?
How much money will you
need when you retire?
How do you react to those you say,
“I’ll just live on Social Security.”

How much money will you
need when you retire?



What are the eligibility requirements
to receive Social Security?
What is the difference between a
traditional IRA and a Roth IRA?
What is the difference between a
401(k) and a 403(b).
Other sources of retirement
income:
Pension plans



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
401(k), 403(b)
Traditional IRA
Roth IRA
Keogh plan
Social Security
Interactive Game
Planning for retirement is
your responsibility!



Traditional employer-funded
retirement plans are disappearing.
Social Security benefits may not
insure a comfortable lifestyle.
Without a retirement plan, you could
face a future of financial
uncertainties and hardships.
Compound Interest

Interest which is calculated not only on
the initial principal, but also the
accumulated interest of prior periods.
Would You Rather Have, A
Million Dollars Today, Or A
Penny That Doubles Every
Day For Thirty Days?
I Hope You Chose The
Penny!
Albert Einstein was so
impressed with the
principle of
compounding that he
said…
“It is the
greatest
mathematical
discovery of
all time.”
IN 2009
$121,96,709,346.21
Figure out Compound Interest
$300, 4% interest, 3 years
How much interest?
Beginning of Year 1
$300
$300
x. 04
+ 12
$12
$312 End of Year 1
Figure out Compound Interest
$300, 4% interest, 3 years
How much interest?
Beginning of Year 2
$312
$312.00
x. 04
+ 12.48
$12.48
$324.48 End of Year 2
Figure out Compound Interest
$300, 4% interest, 3 years
How much interest?
Beginning of Year 3
$324.48
$324.48
x. 04
+ 12.98
$12.98
$337.46 End of Year 3
Figure out Compound Interest
$300, 4% interest, 3 years
How much interest?
Total
$337.46
-Principal
-300.00
Total Interest
Figure out Compound Interest
$100, 2% interest, 3 years – How much interest?
 Year 1: $100 at 2% = $2


Year 2: $102 at 2% = $2.04

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$102 + $2.04 = $104.04
Year 3: $104.04 at 2% = $2.08

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$100 + $2 = $102
$104.04 + $2.08 = $106.12
(Total) $106.12 – (Principal) $100 = (Interest)
$6.12
Rule of 72

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Tells you how long it takes your
money to double in value.
Divide 72 by the interest rate to
determine number of years to
double.
Divide 72 by years to determine
rate needed to double your money
in a given time period.
Try It!
Apply the Rule of 72 to Find the Time or Rate

Assume you can earn 6% on your
money. How long will it take $100
to grow to $200?
72 ÷ 6% =
12 years
Try It!
Apply the Rule of 72 to Find the Time or Rate

If you have $200 today and need
$400 in eight years, what interest
rate do you need to earn?
72 ÷ 8 years =
9% interest
The key
is to
START
EARLY!
Assessment

Create a children’s story promoting
saving.
Assessment
Answer each question then share you answers
with the class in the form of a role play.
1.
Norma is considering buying a certificate of
deposit with the $500 she has in a regular
savings account. Explain to her what factors
she could consider when choosing a certificate
of deposit.
Assessment
Answer each question then share you answers
with the class in the form of a role play.
2.
You were visiting your Grandpa and you
happened to find $5000 stashed in an old shoe
box. He told you that he had been saving this
money for over 20 years.
a.Explain to him other options he has.
b.Explain and demonstrate the principles of
compounding interest.
Assessment
Answer each question then share you answers
with the class in the form of a role play.
3. Your friends, Jim and Joey (16) are twin
brothers and just received a $1000 inheritance
from a wealthy aunt. Jim wants the two of
them to put their money together and buy a 4wheeler. Joey says he wants to put his money
in a savings account. Jim comes to you to ask
you to help persuade Joey to buy the 4wheeler. What is your best financial advice?
Assessment
Answer each question then share their answers
with the class in the form of a role play.
4. You’ve been working for a while, but your
sister just got a job and is excited to have
some of her “own” spending money. Money
burns a hole in her pocket and you need to
give her some ideas on how to save some
money.
Let’s Wrap It All Up and Play
Savings & Investment
Fly Swatter Game
Future
Value
Compounding
Interest
Rule of 72
Certificate of
Deposit
Quarterly
Education
(college)
Interest
True
9 years
False
Principal
Shorter
Savings
Account
12 years
Emergency