1. Retirement Savings and Borrowing Money
Vehicles, interest, and not being poor when you are old

2. Retirement savings Average American lives to be about 79 years old
Average retirement age is 63
Need to live for at least 16 years, if not more 

3. Social Security From Investopidia:
Social Security benefits are calculated by combining your 35 highest-paid working years. First, all wages are indexed to account for inflation. Wages from previous years are multiplied by a factor, based on the years in which each salary was earned and the year in which the claimant reaches age 60, to give an amount comparable in buying power based on the current value of the dollar.

4. Social Security Payouts
The maximum monthly Social Security benefit payment for a person retiring in at full retirement age is $2,639.
The estimated average monthly benefit for "all retired workers" in 2016 is $1,341.
A good thing to support your retirement, but usually not enough to be your only hope.

5. Pensions Per Google: Defined benefit
A regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed during their working life.
Defined benefit
Rare in private sector, becoming rare in public sector

6. Pension Calculations & Pros/Cons
Pension works on a simple formula:
Salary X # years worked x multiplier
Pro
Guaranteed income for life
No worry about market fluctuations
Con
No personal control over your money
Some uncertainty in the future

7. 401k/403B/457 Sponsored by employer – 57% of Americans
Only 39% use them per BLS
Define contribution plan
Money put in by yourself
Can be matched by your employer
Maximum personal contribution - $18,000
Maximum total contribution - $53,000

8. IRA Individual Retirement Account Not tied to an employer
Must have “earned income”
Limit of $5,500 a year

9. Flavors of IRA/401K Traditional Roth Put pre-tax money in
Some get tax deduction, full for 401K or partial for IRA (under $71,000 is single, or $118,000 married)
Taxes paid when money is withdrawn
Roth
Post tax money
Income limits (Phase-out starts at $117,000 single, $184,000 married)
Money is withdrawn tax free (for now)

10. Pros/Cons of IRA/401K Pro Con Money grows tax free
Traditional – lowers taxes now
Roth – tax free income in the future
Different ways to use the money other than retirement
Con
Money is often tied up until 59 and ½
Can lose value over time
Need to save it for it to work 

11. Where to put accounts Savings accounts Mutual funds Individual stocks
Broker Load
No load – self run
Individual stocks

12. Power of compound interest
As a saver
Lets say you place $2,000 a year into your Roth IRA every year from 25 to 65 when you retire. If you reinvest the dividends and assume a 6% interest rate, what do you get when you retire?
$328,000

13. Power of compound interest
Lets say you save the limit each year instead of just $2,000.
You place $5,500 from 23 to 67 (full retirement 6%
$1,164,500 – WOW!

14. Loans and interest
While savings can be great, interest on loans can also be harmful if not taken into account.
Most common loans
Student
Mortgage
Business

15. Mortgage length and interest rate
Most common lengths for mortgages are 15 and 30 years
15 year mortgage has a lower interest rate, why?
Same loan amount: $200,000
Same interest rate: 4%
Different amounts paid in interest:
30 year mortgage - $143,739.01
15 year mortgage - $66,287.65
What's the catch with a 15 year mortgage?

16. Extra Mortgage payment
If you were to pay $100 a month on your 30 year mortgage, you could save almost 5 years off your mortgage – a savings of almost $27,000 in interest
If you have a 15 year mortgage, it shortens it by 15 months – a savings of $6,000
Why is it less of a good deal for a 15 year mortgage?

17. Student loans
Average graduate in 2016 had $31,400 upon graduation -
What do you think the average interest rate is for student loans?
6.8%!!!!

18. Student loan payments You will pay 26,041.67 in interest!!
Standard repayment term is 20 years
You payment would be about $240 a month for 20 years
You will pay 26, in interest!!