What every college graduate needs to know to get started saving and investing for retirement when they start their career.

1. Congratulations!
You’re graduating from college.
Now let’s talk about your
retirement.

3. • 4 out of 5 Households have less than 1x their annual
salary saved.
• For 55-64 year olds, 3 out of 8 people have more than
1x their annual salary saved.
• And only 1 out of 25 have more than 4x saved.
• On average they’ll need 22x their annual salary saved.

5. Your greatest asset is time!
Start saving as soon and as much as possible!

6. 401k
• Defined contribution plan
• Your retirement is up to you and how much you save.
• Enroll!
• Increase the amount you save every year.
• Get to your employer’s matching level as quick as possible. It’s free
money!
• “Save More Tomorrow” from Richard Thaler’s book Nudge

7. IRA vs Roth IRA
• IRA (aka Traditional IRA)
• Pre-tax contributions. Used to lower current tax bill.
• No capital gains tax.
• Money must be taken out each year starting at 70.5 years old.
• This is taxed at current income bracket at time of withdrawal
• Roth IRA
• After tax contribution. Does not lower current taxable income.
• No capital gains tax.
• No mandatory withdrawals.
• Money withdrawn is not taxed
• Better option if you want to buy a house

8. Saving Yourself from Yourself

9. The average investor has underperformed every asset class for the last 20 years.
Performance chasing
• Buy what is going up
• Sell what is going down
• Right before reversion to the mean
It looks something like this...

11. The Odds are in Your Favor

12. • Positive returns over any 20yr rolling period.
• The worst 20 year period for total returns was 54%
• The worst 30 year period for total returns was 854%

13. Behavioral Finance Books to Help
• Your Money and Your Brain by Jason Zweig
• Easy to read and it focuses on the physical structures in our brains and how
they lead us to do the wrong thing when it comes to money.
• Thinking, Fast and Slow by Daniel Kahneman.
• The bible of behavioral finance. It gets into the battle between our fast,
reactive system 1 thinking and our slow, rational system 2 thinking. The big
thing affecting us is “Loss Aversion”.

14. Create an Investment Plan
• Technology and competition has made the entrance cost so low
everyone has access to a well diversified portfolio now.
• “Robo-Advisors”
• Goal based investment plan versus risk based.
• Financial Advisors
• I’m always here to help.

15. Stick to the Plan!

16. • Make saving regular and automatic. Pay yourself first.
• Rebalance on a consistent schedule.
• Ignore market news. It’ll trigger emotional decision making.
• Review the plan every few years and at milestones.
• If you can’t, then hire someone.

17. Budget
• Mint
• Level App
• Track your spending. You can’t improve what you don’t measure.

18. Avoid Debt

19. • Saving and investing creates positive compounding effect.
• Wealth building.
• Credit card debt is negative compounding.
• Wealth destroying.
• Pay off student loans as quick as possible.
• Side hustles to make extra money.
• www.budgetsaresexy.com for 60+ list of side hustles

20. I’m always here to help
I’ll help you with anything financial that pops up over your life.
Personal Email: gjbusch@yahoo.com
Work Email: gbusch@amminvest.com
Office Phone: (858) 755-0909
Cell Phone: (858) 945-8092