Financial Planning Essay

To inform the audience slightly how small sacrifices today can result in huge dividends in retreat. Thesis Today I will inform the audience of the military unit of salve small bars of money for the future and how compound amuse whole kit and caboodle in their favor when they start deliverance as soon as possible. Organizational Pattern Topical Introduction A. Attention Getter Who wants to be a millionaire? You can beSocial Security will very probable NOT be available to people currently younger than 40 and if it does survive will not be a significant amount to live on. How we prepargon NOW can determine whether we are knowledge base travelers or Walmart greeters. C. Credibility My father impressed upon me the need for financial planning. I began saving when I first started working at 17 and generate benefitted greatly. D. Thesis Today I will show how anyone can birth a rewarding future by making small and lots unnoticed sacrifices currently. E.Preview Specifically, I will talk over retirement saving strategies including 401K matching programs from employees and IRAs. Transition First I will discuss the expediency of saving at an proterozoic age. I. Body A. When to start saving for retirement? 1. The earlier the better. Due to the exponential nature of compound interest the long-dated the money remains the more significant the growth 2. Its never too late to start saving for retirement. The problem is the longer you wait the more impact on your budget collectible to having to keep back a higher percentage of your current income.If you start saving early your impact is minimized greatly. Transition Next, I will discuss the unlike ways to save for retirement. 1. 401K plans offer you the chance to deduct monies from your paycheck both before appraisees are deducted or afterward. Each option has tax 2. advantages save their impact is geared toward current tax savings or tax savings during retirement. The real opportunity in 401K is the employee m atch program where your employer invests the corresponding amount into your account, usually up to a certain percentage. .Individual seclusion Accounts (IRAs) are another way to save for retirement. They can be utilise independently or in conjunction with a 401K plan. Funds are deposited after taxes have been withheld so there is no tax due upon withdrawal in retirement. IRA contributions can be withdrawn without penalty if you face a financial hardship such as losing your al-Qaida or significant medical bills. Transition My final point is a strategy that can meet your goal while minimizing impact on your current lifestyle. 1.Many of you are working toward new careers and excited approximately that first REAL paycheck. 2. If you forget or so the percentage of your check that is tone ending into the 401K and structure your budget on the remaining amount you will come saving easy and rewarding. 3. Begin with 3% of your pay going into retirement savings. Each raise/promotion y ou get increase it by 1% until you have reached your employers maximum match rate. Then add the 1% into an IRA until you have reached the percentage that results in your desired retirement account.I have discussed when to start saving for retirement, various ways to save as well as methods for minimizing the impact on your current budget. B. I believe that now you are more informed about the rewards available in the future when you start saving now and have obtained information about ways to achieve your goals. References Ira online resource guide.