The Twilight Zone
Love Your Money
Jayne McBurney, MSFamily & Consumer Sciences Agent
http://johnston.ces.ncsu.edu/2736 NC Highway 210Smithfield989-5380
ABC’s of my retirement• A - Alaska• B - bake• C - Carmen Ghia• ....• X - eXercise• Y - YAWN...take naps• Z - Zurich
Are you ready?• Over HALF of middle class Americans are not!• 70% of Americans say they will work in
retirement• 34% say their retirement income will be HALF
of what they currently make• (fyi...US HH median income is $50K...
half of that amount is close to poverty level)
Harris Interactive Inc. (2012)
How Much Will You Need?
• 80% of current income, to live as you are living right before retirement
80% of income- Social Security estimate
= what you need to save
What about the Bucket List?
Federal Benefits: Social Security
• Will it be there?
• Can start collecting at 62
• Medicare...starts at 65 (unless disabled)
• Full Retirement age is greater than 66.
• Considerations: time paid in, divorce, health
Employer Benefits
• State/Federal Retirement Programs• Roth IRA• 401K – take advantage of match!!!• 457
At age 65• Penny has $545,344 from the $20,000
she invested• Ruby has $352,427 from the $62,000
she invested• Penny has $192,917 more for
retirement.
NOT too late• If you start investing later in life, it is not
too late, you just need to put more in.• STOP spending your future money by
indebting yourself in current lifestyle• DO NOT borrow against your house,
your car, your 401K
Protect your AssetsThings you own that have value…
• Car, vehicles• bank accounts, CDs , stocks• Retirement plans, 401K,
IRAs• Life Insurance cash values,
Trust funds
• Manage Risk – diversify• Insure• Umbrella Liability Insurancepolicy that adds additional protection to that provided by your homeowner and automotive policies
Get your protection in place!
Long Term Health Needs• Medicare doesn’t cover everything
• Long Term Care policies now meshing with Life Insurance policies
• Living Will• Medical Directives
Fun & Helpful websites• www.bankrate.com• www.AARP.org• www.SSA.gov• Ready.Save.Grow (
www.treasurydirect.gov)• www.choosetosave.org• www.mint.com