| Show COMMUNITY COUNSELING Play Pion Now For Retirement Days Doys Sponsored by South Davis First National Bank Dank in cooperation cooperation cooperation coop coop- with the Davis County County Coun Coun- ty Clipper Please address your question to the South Davis First National Bank Dank 1606 So Main St. St Bountiful Utah or to this paper QUESTION I am still young But I can foresee problems ahead during a period of forced retirement after I reach age 65 n as s my social security and retirement re- re pay will not meet the cost of living Can you offer some some suggestions to help secure my financial position after I reach each 65 ANSWER You are interested interest interest- ed d in a preparation f for r living plan It It is wise that you are facing acing up to this problem while still at an age that you can really do something about it One answer is a program of sound investments BY DY SUGGESTING this as as' as a course of f action we automatically automatically automat automat- cally reject the idea that investments investments in in- vestments are for the rich only Also dont don't interpret this to mean that you should engage in n a and highly speculative program in an attempt to o b become come wealthy fast It is just the reverse that is proposed A CAREFUL well conceived program under the direction of ofa a good financial counselor is the he route to t tali taK Th The hot tip method is the way to financial ruin uin Saving is the necessary prerequisite pre pree requisite essential to any in in vestment or other financial program SUCCESS in a financial way is not measured by what a man earns but by what he can save Investments in c com common o m m o 0 n stocks for example should be made from the resources of a savings account and not by cheating on a grocery bill or a deserving creditor Reserves are also necessary to take full advantage of market trends THE TIlE SAVINGS account is your margin of safety always there to meet emergencies or provide cash for something worthwhile To be on the safe s1 side it should remain It must also be kept in mind that a savings sayings account itself a form of investment is a good working king partner for you TO ILLUSTRATE a penny saved and drawing annually 4 per cent interest compounded semi annually this is the current current current cur cur- rent bank interest rate at the birth of our Savior would now amount to over today Savings accounts can not be ignored as good investment themselves as they not only earn substantial interest but they are the safest and most readily available source of interest interest in in- terest bearing revenue WITH AN adequate savings account you are then prepared to enter the common stock ins in in investment vestment field again with the aid of an advisor Here the po return is greater but so sois sois sois is the risk For instance invested in inI I IBM M in 1921 would have yielded yield ed only 23 years later of life But losses on some other other oth oth- er stocks were almost able I HOWEVER the avera g e over all yield as reported by bythe bythe bythe the New York Stock Exchange over the past 80 years period is over over 9 per percent cent Again the question is such a program within the realm o othe of the average or moderate income income income in in- come individual YOU BET DET it is a year invested start starting starting ing at age 25 and averaging 8 per cent interest would become I nearly by retirement age a healthy sum to fall back on CONSIDER too that only a portion of this would be withdrawn withdrawn withdrawn with with- drawn each year during the retirement The balance would keep right on earning In fact the interest at 8 per cent annually annually an an- on this principal sum sum would provide 2240 each year on its own 25 saved each month would provide a retirement fund on the same basis People do live longer now I and longevity will probably to increase Thus we should prepare to provide for ourselves for at least 15 years after our regular income ceas ceas- es Add to this the fact that we seem to be on a steady path o of increased cost of living and we find ourselves confronted with witha a serious problem if we fall fail to program for the future |
