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Unformatted text preview: 2/4/2011 1 Important Course Activities Critique Previous Student’s 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....
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This note was uploaded on 04/19/2011 for the course EE 0822 taught by Professor Lengkeek during the Spring '11 term at Temple.
- Spring '11