Workshop Thirteen

🧭 Mission Briefing

Objective: Learn how to prepare for retirement using 401(k), IRA, and pensions—and why starting early matters. Social Security alone may not cover all expenses; your own investing and saving strategy fills the gap.

🎯 Target 1: Why Plan?

Retirement planning ensures income after work stops. Early, steady contributions grow through compound growth, creating financial freedom later in life.

🎯 Target 2: 401(k)

• Employer-based plan; often pre-tax contributions.
• Employer match = free money. Contribute at least enough to get the full match.
• Invest inside the account (e.g., index funds/target-date funds) to grow over time.

🎯 Target 3: IRA (Traditional vs. Roth)

• Traditional IRA: Tax-deferred growth; taxes generally paid in retirement.
• Roth IRA: Pay taxes now; potential tax-free withdrawals in retirement (if rules met).
• Choose based on your current vs. expected future tax situation.

🎯 Target 4: Pensions

Employer-provided guaranteed income in retirement (more common in public sector). Consider vesting rules and how the pension works with Social Security.

🎯 Target 5: Strategy & Discipline

• Invest regularly (e.g., monthly) and increase amounts as income grows.
• Diversify using broad funds; align risk with time horizon.
• Avoid early withdrawals—penalties and lost compounding hurt long-term results.

Mission Recap: Start early, capture employer match, pick appropriate accounts (Traditional vs. Roth), diversify, and let time do the heavy lifting.