saved for retirement by the typical family, counting everyone.
$840
a month. What $252,000 pays at a 4% draw.
Source: Federal Reserve, 2025 Survey of Consumer Finances (released Oct 2026). Medians among families that hold each. Debt includes mortgages, cars, cards, and student loans. Age is head of household.
02 · Inflation
The quiet money leak.
What it is
Prices rise over time. So every dollar buys a little less each year.
Why it matters
Your money has to grow faster than prices, or you go backward. Retirement can last 30 years, and your income has to rise with it.
What $100 buys at 2.5% inflation
$100
Today
$88
Yr 5
$78
Yr 10
$69
Yr 15
$61
Yr 20
$54
Yr 25
Prices double in about 29 years.
What moves it
DemandMore spending chases the same goods.
CostsEnergy, materials, and wages go up.
The FedInterest rates and money supply.
Gov't spendingMore dollars in the system.
ExpectationsExpect higher prices, and they show up.
03 · Compound growth
Time is the multiplier.
Growth earns growth. The earlier you start, the harder it works.
Starts at 25
$787K
Puts in $144,000
Starts at 35
$366K
Puts in $108,000
Waiting 10 years cost $421K.
Hypothetical: $300 a month, 7% a year compounded monthly, to age 65. Not a specific investment. Does not reflect fees or taxes. Rule of 72: at 7%, money doubles about every 10 years.
04 · Dollar cost averaging
Same amount, every month.
Invest the same dollars on a schedule, no matter what the market does. When prices drop, your dollars buy more shares.
You put in
$600
Shares owned
81.7
Average price
$7.83
Your average cost
$7.35
Price ended right where it started. Your $600 is worth $817.
Hypothetical example: $100 a month for 6 months. For illustration only. Dollar cost averaging does not guarantee a profit or protect against loss in a falling market.
05 · Dollar cost averaging, real years
Keep buying through storms.
$500 a month for 25 years
$150,000
put in
Value at end of 2025
$845K
S&P 500, actual returns
Three crashes
0
months skipped
S&P 500 total returns 2001 to 2025, dividends reinvested. Modeled as $6,000 invested at the start of each year. You cannot invest directly in an index. No fees or taxes shown. Past performance does not guarantee future results.
06 · Diversification
Don't bet it all on one thing.
What it means
Spread your money across things that don't move together: stocks and bonds, big and small companies, different industries, the U.S. and the world.
One bad pick can't sink the whole plan.
A smoother ride, so you stay in when it gets rough.
Something is usually working, even in a bad year.
2008: same year, different results
+5.2%
U.S. bonds
-37.0%
U.S. stocks
2000 to 2009, per year
-0.9%U.S. stocks
+6.3%U.S. bonds
U.S. stocks: S&P 500 total return. U.S. bonds: Bloomberg U.S. Aggregate Bond Index. Indexes are unmanaged and cannot be invested in directly. Diversification does not guarantee a profit or protect against loss.
07 · Asset allocation
How you split it.
Asset allocation is your mix of stocks, bonds, and cash. Diversification spreads money inside each one.
Stock
You own a slice of a company.
You share in its growth and its drops. More growth over time, bigger swings.
Bond
You lend money to a company or government.
They pay you interest, then pay you back. Steadier, slower growth.
Cash
Savings, money market, CDs.
Safe and ready to use. Often barely keeps up with inflation.
Sample mixes
StocksBondsCash
GrowthLonger time, more swing
BalancedMiddle of the road
ConservativeShorter time, less swing
Sample mixes are for illustration only, not recommendations. The right mix depends on your goals, time, and risk tolerance.
08 · Risk tolerance
How much swing can you take?
Gut check
Your $100,000 drops to $70,000 in one year. What do you do?
SellHoldBuy more
Willingness
How you feel when the account drops.
Your gut. Your sleep at night.
Ability
How much you can afford to ride out.
Years until you need it, steady income, emergency fund.
ConservativeModerateAggressive
The best plan is the one you'll stick with in a bad year.
09 · Taxes
3 ways your money is taxed.
Tax every year
Taxable
Brokerage accountSavings & CDsMoney market
No limit on how much you put in
Take it out anytime
Lower rates on long-term gains
Interest and dividends taxed each year
Taxes slow the growth
Tax later
Tax deferred
Traditional 401(k)403(b) & 457Traditional IRA
Lower taxes today
Grows with no yearly tax
Employer match
Every dollar out is taxed as income
10% penalty before 59½, most cases
Forced withdrawals start at 73 to 75
Tax free growth
Tax exempt
Roth IRA & Roth 401(k)Tax-free out after 59½No deduction today, income limits
HSAIn, growth, and medical out: tax freeNeeds a high-deductible health plan
Municipal bondsInterest free of federal taxLower interest rates
U.S. TreasuriesInterest free of state & local taxStill taxed federally
General education, not tax advice. Rules and limits change. Talk to a tax professional about your situation.
10 · Sequence of return risk
Order matters.
Same 25 years of real returns. Two different orders.
A
As it happened
2001 → 2025. Starts with two down years.
B
Backward
2025 → 2001. Starts with three great years.
Average return, both
10.4%
Just saving, no withdrawals
$4.14M
Both end the same. Order doesn't matter.
Taking income?
Order is everything.
S&P 500 total returns 2001 to 2025, dividends reinvested. Starting value $500,000 for each. Past performance does not guarantee future results.
11 · Sequence of return risk
Same returns. Different ending.
Both start with $500,000. Both take out $25,000 the first year, raised 2.5% a year for inflation.
AAs it happened
$0 by year 22
Bad years came first, while money was coming out.
BBackward
$2.19M left
Good years came first and built a cushion.
The first 5 to 10 years of retirement carry the most risk. Protect them.
Hypothetical. S&P 500 total returns 2001 to 2025 (A) and the same returns in reverse (B). Withdrawals taken at the start of each year. No fees or taxes. Past performance does not guarantee future results.
12 · Your next step
The value of a plan.
A goal without a plan is just a wish.
Portfolio check up
Let's look at where you stand, side by side.
Which works better for you, this week or next?
Team RISE
Where you stand
What you own, what you owe.
On track?
Your goal, your gap, your timeline.
Mix and risk
Does your allocation fit you?
Tax buckets
Taxable, deferred, and tax free in balance.
Income that lasts
A shield against sequence risk.
Inflation ready
Growth that outpaces rising prices.
For educational purposes only. Not investment, tax, or legal advice, and not a recommendation of any specific product. Examples are hypothetical. Past performance does not guarantee future results. For your situation, talk with a licensed professional.