Financial Literacy Education Series · Session 5
Retirement Basics and Long-Term Financial Planning · Apex Learn × House of Friendship
Most people need all three sources together. Fill in what you know; the blanks are your homework. What applies to you depends on your work history and status — ssa.gov and a free counselor can say.
1 · Social Security
I have a free account at ssa.gov/myaccount
Credits so far:
Earnings listed correctly? Yes Not sure
My question for SSA or a counselor:
Never answer a call about Social Security that threatens you or asks for gift cards (Session 3).
2 · A plan at work
Plan? Yes No I will ask on
Match: % of pay (how: )
Vesting schedule:
I put in: % · pre-tax Roth
What is inside:
3 · My own accounts
IRA? Yes No Ask a counselor
Kind: traditional Roth
Savings set aside for later: $
Other (home, business):
The account is the box; choose what goes inside — many companies, low fees, long time.
Start now vs. later — $150 a month, illustration at 7% (not a prediction)
| Years until work income stops | 10 | 20 | 30 | 40 |
|---|---|---|---|---|
| Your money in | $18,000 | $36,000 | $54,000 | $72,000 |
| Value at the end (illustration) | $26,000 | $78,000 | $183,000 | $394,000 |
Real results differ every year; some years lose money. The pattern is the lesson: each ten years of waiting costs more than the money you would have put in. Cashing out $10,000 at 30 gives up about $76,000 at 60.
My contribution ladder
Now: % → the full match: % → +1% each year / each raise → long-term target 10–15% including the match
Any percent beats zero. Someone starting at 50 may aim higher; someone paying down 24% debt may pause at the match.
Financial Literacy Education Series · Session 5
Beneficiaries · insurance · documents · the list of every plan. Keep this page with your important papers.
Every account and policy — and who is named on it
| Account or policy | Where it is (company, phone) | Beneficiary named | Done |
|---|---|---|---|
| Plan at work (current job) | |||
| Plan from a previous job | |||
| Plan from a previous job | |||
| IRA | |||
| Bank / savings account | |||
| Life insurance policy | |||
Changing jobs: do not cash out. Leave it, move it to the new plan, or move it to an IRA (a rollover). Your own money is always yours; the employer’s part depends on vesting.
Insurance check
One question for a counselor:
Documents in one place
The folder is at:
The person who knows:
Ten-minute family talk
“If something happened to me tomorrow, this is where the money is, this is who to call, and this is what I want.” Date we talked:
Financial Literacy Education Series · Session 5
A fictional family. Work through it with your table.
Amara, 36, and Daniel, 38, have been in the U.S. for five years with two children. Daniel drives for a hospital transport service — $36,000 a year. His job offers a plan that matches 50% of what he puts in, up to 6% of pay. He put in 0%: “I did not understand the form.” Amara runs a small cleaning business — no plan at work. They send $150 a month to Amara’s parents. Emergency fund: $1,200. Credit card: $2,400 at 24%. Room each month: $200.
1 · The match, in numbers
6% of $36,000 = $ a year = $ a month before tax
The hospital adds 50% = $ a month
From take-home, Daniel feels about $150. Total into the account each month: $
2 · $200 a month of room. What first?
Why:
3 · Trade-offs
| Option | What is good about it | What it costs or delays |
|---|---|---|
| A · Match first, rest to the card | ||
| B · Card first, then the plan | ||
| C · Amara’s IRA first | ||
| D · College first |
4 · Amara has no plan at work. What is her box?
Who can tell her which kind fits her tax situation?
5 · Daniel changes jobs in two years. What happens to the money?
His own contributions:
The hospital’s part: depends on
What he should not do: