life skills sept 25[1]

8/14/2019 Life skills Sept 25[1]

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Be ll Rin gere ll Rin ger What is the average age for retirement?What is the average age for retirement?


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nswersswersEarningsarningsSta teme ntta teme nt1.1. $167.31$167.31

2.2. 6%6%

3.3. $27.00$27.00

4.4. $15.21$15.215.5. $1521.00$1521.00

6.6. $121.68$121.68

7.7. $91.26$91.26

8.8. $108.64$108.64

9.9. $380.25$380.25

10.10. 83 hrs83 hrs


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Form W-4orm W-4


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An swe r t o W-2n swe r t o W-21.1. $416.38$416.38

2.2. 230-53-2325230-53-2325

3.3. 12%12%

4.4. $861.48$861.485.5. $28,716.00$28,716.00

6.6. 3%3%

7.7. $23,130.74$23,130.74

8.8. $28,176.00$28,176.00

9.9. $3,445.92$3,445.92

10.10. $1,722.96$1,722.96


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Sa vin g f or Retirementa vin g f or Retirement You learned about social security taxesYou learned about social security taxes

and what they pay for.and what they pay for.

It is like having a bank account with theIt is like having a bank account with thegovernmentgovernment

Provides at most a few hundred dollarsProvides at most a few hundred dollars May not be enough to pay all your billsMay not be enough to pay all your bills


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Pla nnin g f orla nnin g f orRe tire mente tire ment Setting money aside now, will ensure youSetting money aside now, will ensure you

have the money to pay bills, as well as tohave the money to pay bills, as well as todo things like travel, take up a hobby, anddo things like travel, take up a hobby, anddo other things you enjoy when you retire.do other things you enjoy when you retire.

There are different ways to save moneyThere are different ways to save moneyfor retirement.for retirement.


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CD sD s Certificate of depositCertificate of deposit

A savings account in which the moneyA savings account in which the money

has to stay in the account for a sethas to stay in the account for a setamount of time.amount of time. Six months up to a yearSix months up to a year

Pays more interest than a regular savingPays more interest than a regular savingaccountaccount


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Sa vin gs Bo ndsa vin gs Bo nds Its like a loan to the government.Its like a loan to the government. Available in amounts such as $25, $50, $100,Available in amounts such as $25, $50, $100,

and $500and $500 You buy the bonds at half the face value: so aYou buy the bonds at half the face value: so a

$50 bond will cost you $25.00$50 bond will cost you $25.00 When the bond matures, in around 10 years,When the bond matures, in around 10 years,

the bond is worth the face value.the bond is worth the face value. So the bond you paid $25 for is worth $50So the bond you paid $25 for is worth $50

If you hold the bond for 30 to 40 years, it canIf you hold the bond for 30 to 40 years, it canbe worth more.be worth more.


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IRA sRA s Is a savings account. The amount youIs a savings account. The amount you

put in is untaxed.put in is untaxed.

You are allowed to put a maximum ofYou are allowed to put a maximum of$2000.00 per year into your account$2000.00 per year into your account

You cannot take the money out until youYou cannot take the money out until you

are 55.5 years oldare 55.5 years old If you do, penalties are chargedIf you do, penalties are charged

You pay taxes when you take the moneyYou pay taxes when you take the money

out.out.


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Ta x-De fe rr ed Sa vi ngsa x-De fe rr ed Sa vi ngsPla nsla ns Also called 401 KAlso called 401 K You put money in through a deduction from paycheckYou put money in through a deduction from paycheck

You agree to have between 1%-15% of your gross incomeYou agree to have between 1%-15% of your gross incomewithheld for this purposewithheld for this purpose

This is done before taxes are deducted, meaning you payThis is done before taxes are deducted, meaning you pay

less taxes.less taxes. Earns interestEarns interest Some employers match the amount you put in, up to a certainSome employers match the amount you put in, up to a certain

amount.amount. You cannot take the money out until you are 59.5 years old.You cannot take the money out until you are 59.5 years old.

If you do, penalties are chargedIf you do, penalties are charged Taxed when money withdrawnTaxed when money withdrawn

If withdrawn before 59.5, regular rate. After you retire, atIf withdrawn before 59.5, regular rate. After you retire, ata lesser rate.a lesser rate.

Withdrawals before 59.5 without penalty sometimes allowedWithdrawals before 59.5 without penalty sometimes allowedfor: purchase of first home, college tuitionfor: purchase of first home, college tuition


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Homeworkomework WorksheetWorksheet

Answer Chapter 6 Lesson 9 reviewAnswer Chapter 6 Lesson 9 review

questionsquestions Quiz coming upQuiz coming up

life skills sept 25[1]

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