The document discusses several topics related to personal finance including how money works, debt management strategies, the power of compound interest, retirement planning, and social security. It provides examples of how small interest rates can dramatically grow savings over time using the Rule of 72. It also shows how high interest debt can rapidly accumulate if only minimum payments are made each month. The document emphasizes starting financial planning early in life and having specific, written goals to work towards retirement security.
6. Most People Don’t Plan to Fail, They Fail to Plan Today 1. Young children 2. High debt 3. House mortgage Loss of income would be devastating At Retirement 1. Grown children 2. Lower debt 3. Mortgage paid Retirement income needed The Theory of Decreasing Responsibility Over the Years, Your Needs Change. In the early years, you don’t have money... In the later years, you better have money. In the early years, you may need a lot of coverage... In the later years, you may not.
7. Counting on Social Security? If you’re counting on Social Security to fund your retirement, you could be in for a big surprise. The monthly Social Security benefit for the typical retired worker in 2009 is $1,062. – ssa.gov, September 2009 Could you live on $1,062 per month?
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