Posts Tagged With: retirement planning

Stock Investing at Lower Risk: A Guide for Beginners

Posted on April 20, 2014 by Melissa Hart

Here’s a simple breakdown of key points for investing in stocks

For the beginner, stock investing can seem like an uncharted mine field because of terms, regulations, and fear. This article provides five important pieces of information that can help students understand stocks and become better investors. Here goes:

Owning stock is owning a company. As an owner, you have rights and responsibilities.
Stocks grow two ways because they can increase in value and they pay dividends.
Stocks rise and fall in value. Keep in mind what goes up can come down.
You will pay taxes unless your stocks are held inside some type of tax deferred retirement account.
Stocks can be volatile. Volatility is different than the typical rise and fall in price described above because volatility occurs when an investment has major price swings in a short period of time.

For more information go to

http://www.forbes.com/sites/mitchelltuchman/2013/08/09/stock-investing-at-lower-risk-a-guide-for-beginners/

Teaching Suggestions

You may want to use the information in this blog post and the original article to

Provide basic information to students who are studying stock for the first time.
Help students understand the process of stock investing.
Compare stocks with savings accounts, certificates of deposit, bonds, mutual funds, and other investment alternatives.

Discussion Questions

How can you profit from a stock investment?
What are the risks associated with stock investments?
How can you avoid paying taxes on stock and other investment alternatives?

Categories: Chapter_12, Chapter_14, Investments, Retirement Planning | Tags: investments, retirement planning, stocks | Leave a comment

Do You Need the Retirement Estimator?

Posted on April 16, 2014 by Melissa Hart

Are you saving enough for your retirement? The Retirement Estimator gives you an estimate based on your Social Security earnings. However, be aware that it is only an estimate since your earnings may increase or decrease in the future. Moreover, your benefit amount may be affected by military service, railroad employment or pensions earned through work on which you did not pay Social Security tax. Remember, your estimated benefits are based on current law and the law may change because by 2033, the payroll taxes collected will be enough to pay only 77 cents for each dollar of scheduled benefits.

For additional information about who can use Retirement Estimator and how you can estimate your retirement benefits go to http://www.socialsecuirity.gov/estimator/.

Discussion Questions

How do you decide which calculator to choose?
What are some other possible sources of income for retirees?
How can the Internet assist you in your retirement?

Teaching Suggestions

You may want to use the information in this blog post and the original resource to discuss

What are the two primary reasons for increasing the normal retirement age?
What are some factors that may, or may not, affect your retirement benefits?

Categories: Chapter 1, Chapter 3, Chapter_14, Retirement Planning, Taxes | Tags: calculator, estimator, retirement planning, Taxes | Leave a comment

Can the Government Get Us to Save More for Retirement?

Posted on April 2, 2014 by Melissa Hart

Millions of Americans aren’t saving enough for retirement. Now the President is getting involved and has proposed a new way to help workers save more!

According to a survey by the Employee Benefit Research Institute, 46 percent of American workers had less than $10,000 saved for retirement. The survey also revealed that half of all workers and the majority of part-time workers didn’t receive any retirement benefits from their employer.

To encourage workers to save more, President Obama proposed the “MyRA” plan that allows workers to invest $5,500 a year in government savings bonds that earn 2% to 3% until their balance reaches $15,000. At that point, the money in the account can be rolled over to a private sector Roth IRA, where the money can continue to grow tax-free.

While MyRA accounts are seen as a first step to encourage workers to begin saving, critics argue that the tax-free withdrawals encourage workers to withdraw money before reaching retirement.

For additional statistics on how much Americans save or more information about MyRA accounts, go to http://money.cnn.com/2014/02/11/retirement/retirement-savings/index.html?section=money_pf.

Discussion Questions
1. Many people never begin saving or investing because there is never anything left over at the end of the month. How can you find the money needed to begin saving and investing?
3. Why should you begin to invest money now instead of waiting until later in life?
3. What are the advantages of a MyRA savings plan? of a Roth IRA plan?

Teaching Suggestions
You may want to use the information in this blog post and the original article to discuss
• Why students should develop a long-term financial plan that includes both savings and investments.
• Time Value of Money examples to show how small dollar amounts invested on a regular basic can help achieve long-term financial goals.
• Different types of retirement accounts.