L 3 Investing and Retirement The PayOff

Poll

Which investment did you select?

• Peach Orchard Small Cap Mutual Fund

• Peach Orchard Total World Stock ETF

Open Ended

Which investment did you select, and why?

Open Ended

If selecting an investment that you will not need for 40 years, and given a choice, would you choose stocks, bonds, or a savings account? Why?

Open Ended

Assume your employer offers you a dollar-for-dollar match of 6% on your $50,000 annual salary in their 401k plan and that you are wise, and take full advantage of it. Calculate the anticipated return of the Peach Orchard Small Cap Mutual Fund and Peach Orchard World Stock ETF using the following assumptions and financial calculator for assistance.

Enter the after fee investment value for both options.

https://www.practicalmoneyskills.com/resources/financial_calculators/savings_investment/savings_grow

Open Ended

What surprised you most about the projections? Please elaborate.

https://www.practicalmoneyskills.com/resources/financial_calculators/savings_investment/savings_grow

Open Ended

Fees clearly erode investment returns. Repeat the process using the same numbers, except assume the investor waits until the age of 40 to begin investing for retirement, entering 20 years.

Enter the after fee investment value for both options.

https://www.practicalmoneyskills.com/resources/financial_calculators/savings_investment/savings_grow

Open Ended

How does time impact retirement savings?

Open Ended

Investment returns are a significant factor in your score when playing The Payoff. How will this lesson influence your choice when you play?

Open Ended

Explain why failing to fully take advantage of your employer’s match in a retirement plan is a bad idea

Open Ended

Summarize two lessons you have learned that you plan to apply in your own life when you are old enough to invest for retirement