The Twilight Zone Love Your Money

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

Penny Wise (about $38.50/wk)

Ruby Highlife

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