Budget Project Topic 2

WELCOME AND OVERVIEW

You should find the following items in this Topic, and we suggest you go through them as outlined below.  This is an important topic and we cover a lot of ground.

1. Watch the P1 - Intro - First Day at Work video (23:29) which outlines some important questions most people are asked on their first day at work, discusses insurance that is often times part of employer benefits, and provides the definition of retirement that is the basis for Topic 2.
2. Complete the insurance costs estimate based on the presentation and update your downloaded copy of the After Graduation Budget Spreadsheet with that information.
3. Watch the P2 - First Key - Retirement Plan - An Example video (19:56) which walks through an example retirement plan meant to help answer the key retirement plan questions that are often asked on the first day of work.
4. Watch the P3 - Creating Your Own Retirement Plan video (31:58) which walks through how you can develop a high-level retirement game plan based on your priorities and circumstances.
5. Watch the P4 - Second Key - Start Early - How Early and Why video (25:50) which discusses a common mistake people make when saving for retirement, discusses how to avoid it, and walks through the High-Level Retirement Game Plan Activity.
6. Download and complete the High-Level Retirement Game Plan Activity – How Much document.  You may want to complete more than one High-Level Retirement Game Plan Activity – How Much document to experiment with different ages for reaching financial independence/ retirement.
7. Using the results from the High-Level Retirement Game Plan Activity – How Much document that reflects the retirement plan/age you want to include in your budget, calculate the retirement plan contribution you intend to make in terms of (a) Percent of gross annual salary; (b) Annual retirement contribution dollar amount; (c) Percent of gross monthly salary; (d) Monthly retirement contribution dollar amount.
8. Watch the P5 - 401K vs IRA and Standard vs. Roth video (19:21) which describes the 401K and IRA, Standard and Roth, and walks through questions to help you decide which one is best for you.
9. Watch the P6 - Deciding Where to Put My Contribution video (20:04) which explains employer 401K matching, and walks through an example of deciding whether to use the 401K or IRA or both,
10. Download and complete the 401K vs IRA and Standard vs Roth Activity - Where to Put It document. 
11. Update your downloaded copy of the After Graduation Budget Spreadsheet with your calculated Monthly Retirement Contribution amount in the proper place in the spreadsheet based on which retirement plan option(s) you plan to use.
12. Consider watching the P7 - 401K and IRA Decision-Making video (12:51) which goes through a more involved decision-making process for using the 401K, IRA, or both.
13. Consider watching the P8 - Roth in Retirement video (12:30) which compares retiring with a Standard 401K and a Roth 401K to show the differences.  This video can be helpful for those who are not sure if having less income now to have a Roth 401K or IRA is worth it.
14. Consider watching the P9 - Reaching Financial Independence Early video (31:37) which walks through important considerations for those who may want to achieve financial independence/ retirement early

This material is for educational purposes and is not intended as financial advice.