This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 2/4/2011 1 Important Course Activities Critique Previous Students Spending Plans The Four Pillars of Investing (Introduction and Chapter 1 (Introduction and Chapter 1 (Introduction and Chapter 1) (Introduction and Chapter 1) First Draft of Spending Plan February 16, 2011 February 16, 2011 Lab Lab Goals for this section of the course are: The importance of putting some money aside money you cannot see Doing it systematically Making it a habit "A penny saved is a penny earned." Ben Franklin If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest " always pays the best interest. Ben Franklin 2/4/2011 2 Beware of little expenses; a small leak will sink a great ship." Ben Franklin Why is it so much easier to talk about saving money than actually doing it? Motivation for Thinking About Saving/Investing Freshman of previous EE 0822 class We do not need to be making a retirement plan or worrying about this yet retirement plan or worrying about this yet. In 2007, Bankrate's Financial Literacy Survey indicated that one in five people expected to work until they died. Retirement Statistics 50% (5 out of 10) of workers in their thirties have workplace retirement plans or individual retirement accounts (IRAs) with a median value of $17,000 . By their forties, 60% (6 out of 10) of Americans have retirement funds, with a median value of $40,000 70% (7 out of 10) of workers age 55 or older have less than 70% (7 out of 10) of workers age 55 or older, have less than $100,000 in their retirement accounts, which is far from adequate ,when experts recommend you draw no more than 4% or 5% a year from your accounts once you quit working.or 5% a year from your accounts once you quit working....
View Full Document
- Spring '11