Financial Wellness #1 Why INVEST?

WHY INVEST?

Your retirement income will probably come from one or more of the following sources:

1. Social Security
   a. How much you get depends, in part, on how much you have paid in;
   b. How much you receive depends on several factors;
   c. The maximum benefit in 2016 is $2,639 per month ($31,668 per year)
2. Pensions
   a. Defined benefit plans are rare these days;
   b. Defined contribution plans have contribution limits
3. Investments
   a. Income from your investments;
   b. Sales of your investment
4. Generosity of friends and relatives
5. Continued employment

For many people, the income from the above-mentioned categories will be less than the income they desire to have in retirement.

(data source: thinkadvisor.com)

Successful investing can increase your retirement income beyond what is provided through the above-mentioned categories. Your investing strategies can have a very large influence on your investment results.

To strategize your investment plan, you probably wonder a few concepts: what are the most common investment types? What are the rates of return and risk for these common investments (Note: rates and return and risk can both vary widely from examples provided)? How does the value of money change over time? And how to set up an investment portfolio that is diversified to achieve the two goals of managing risk and outpacing inflation? I will continue these topics in Session #2.

Disclaimer: This material is only for general education or informative purposes only. It is not financial advice or recommendation.