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March 29, 2008
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Persuasive Speech on Saving for Retirement
Dateline: 08/17/98
In virtually every business college, you will have to take some form of speech/communication class. Here's a persuasive speech with a format that Business Majors Guest Writer Allen Yamazaki used for his Speech 251 class. You can also learn about saving for retirement at the same time.
Saving for Retirement
General Purpose: To persuade
Specific Purpose: To persuade the audience to start saving for their retirement
Central Idea: Starting early to save for retirement has many benefits over Social Security
Introduction:
I. (Attention Getter) Only 2 people out of the 19 responses I got from the survey have started saving for their retirement.
A. This is understandable because most of us
probably think that retirement is something
that is eons away.
B. Because we are college students, our school
schedule only allows us to work part time.
C. Between the 2 people that has started saving
for their retirement, one person currently
works full time. And this person also is
participating in their employer's profit sharing
program or 401K plan. And this person
also owns stocks. This person already has a
good start.
II. (Credibility Statement) I myself have started saving for my retirement by starting an IRA.
III. (Reveal Topic) You simply cannot rely on Social Security to support you in your Golden Years. You can never start too early to save for your retirement. In fact, the earlier, the better.
IV. (Preview) Today I will discuss Social Security and why the current system is not working, ways that you can start saving for your retirement, and the benefits of saving for your retirement instead of relying on Social Security.
(Transition: So let me start by discussing Social Security and why it is does not work)
Body:
I. Need Step
A. First I will explain what Social Security is.
1. Social Security is a Federal program where
they take a percentage from all of the wages
earned by workers in this country.
2. The money that is collected is put in a trust
fund that provides a monthly income for
retired workers
.
3. These benefits are also partially available to
the spouse of the deceased beneficiary, and
it provides benefits for disabled workers.
B. According to the article from The Heritage
Foundation Issues 98: The Candidate's
Briefing Book, there are several problems to
the current Social Security system.
1. Social Security gives a poor rate of return.
The rate of return varies from person to
person. For instance, for the best case
scenario, a married couple with two
children and a single earner receives only
4.74 percent if the earner was born in
1932. However, most of us were not
born in 1932 so that percentage
decreases to less than 2.6 percent for
those born in 1976. Single men do the
worst when they only have a rate of
return of less than half a percent.
2. People are becoming more dependent on
Social Security. Today, Social Security
benefits are the primary source of income
for almost two thirds of all retirees.
3. People don't know their rate of return on
their Social Security taxes. A worker has
no clear understanding of the yield on his
or her investment in the Social
Security program.
4. The trust fund is running out of money.
By 2012, the Social Security trust funds
are expected to start paying out more in
benefits than it collects from taxes. Why?
Because people are living longer, more
people are retiring early, and women of
today are having less children. Which
means that there will be less people in
the workforce to pay for the increasing
number of retirees.
(Transition: So now we know that it is not wise to depend just on Social Security when we retire. There are, however, other things you can do to better prepare yourself for retirement. I will focus on investing your money in private investments-particularly IRAs and Stocks)
II. Satisfaction Step
A. The IRA
1. Only 6 people of the 19 surveyed knew
what an IRA was.
2. IRA stands for Individual Retirement
Account
3. Basically, what you can do with this
type of an account is deposit a maximum
of $2000 every year and you will
earn interest on it. The earnings are also
tax deferred, which means that you
won't be taxed on the earnings until
you withdraw it after you're 59 1/2
years old.*
4. This is a long-term investment so you
will be penalized if you take your money
out before you are 59 1/2.*
B. Stocks
1. 5 people of the 19 surveyed own stock
2. According to Bill Staton of the Staton
Institue, Inc., The annual rate of return
of the finest companies are about 13-15%.
This is the rate that these companies
have appreciated since World War II.
3. The old belief is that only millionaires
invested in stock. But now more and
more people are investing in stocks
because they see the great rate of return.
4. To make things even easier, people can
buy and sell stocks by going on the
Internet. The commission rates are
relatively cheaper than hiring a real
broker. You can also get investing tips
from these online brokers.
(Transition: These are just some of the things you can do to start saving for your retirement. Just opening an IRA account or investing in stocks is a good start. Or you can do both. Now I will illustrate how saving for retirement is beneficial)
III. Visualization Step
A. The key here is the earlier you start, the better off you are.
1. Suppose that you made an investment
of $1000 per year in stocks and other
investments at the age of 25.
2. And suppose your friend did the
same thing but he started at age 35.
3. You stop investing after 10 years and
your friend continues to invest until
30 years.
4. Assume that there is an annual
return rate of 8%
5. At age 65, the account value of your
investment will be $170,030 and
only $122,346 for your friend.
6. You'll make $47,684 more than your
friend even when he invested the
same amount of money 20
more years than you.
B. This is called compounding, the more
time you give your investment to grow,
the bigger it will get.
C. With the earnings you make, you will
be able to pay for your child's education.
You can even start saving now to pay
for a future child.
(Transition: So, compared to Social Security, putting your money in stocks and other investments for retirement is the much better deal.)
Conclusion:
I. Action Step
A. Today I have talked about Social
Security and its problems, other ways
of investing your money for
retirement, and the benefits of
investing your money early for
retirement.
B. Whenever your retirement will be,
starting to save now for your
retirement will have big
benefits in the long run.
C. Don't start next year,
don't start next month,
start now.
Word Count: 1266
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