Chapter 6 ( planning for retirement)

In the beginning they are discussing various things of insurance and wills, but then they get to the lesson which is how to save for retirement. roy says they need to plan for prosperity in the future without having to sacrifice too much in the present. roy assures them that there ten percent fun is for buying the extravagant things and that they will also be able to save properly. he also tells them they will be able to save 10% and save for retirement. he also tells them they wont need as much of an income during retirement because their expenses will be lower. he tells them they must work hard now in order to have a productive retirement. he tells them that is some way the government can be their friend with retirement. social security is a government program to help retirees. but he tells them it should just supplement their retirement plan not BE there retirement plan. he suggest they contact someone at social security office to get information. he says even someone with a good pension plan should still have a separate account to save for retirement. he first tells them of the best known plans: the IRA( individual retirement account). but it has a max of $2000 dollars a year, so it might not always be practical. these are good because they can grow tax free and may be tax deductible. he has advice with IRA's make contributions as early in the year as possible and once you are married add your spouse as a beneficiary on your IRA. he also says to start contributing young to the fund! he also tells them how there are many places to purchase IRA's and to pick the one best for them. another idea is a Keoghs plan which allows far more than $2000 dollars a year. then he goes on to explain the best choice for retirement for most americans is a 401(k) , this in many cases involves employers matching you r contributions to it. the limit on a 401(k) is $9500. he says the 401(k) is the best option for most americans.