F I N D I N G S O M E T H I N G T H AT C A N ’ T B E S E E N !

UNDERSTANDING THE ATOM

FARMINGTON JR. HIGHMR. PRATT

ONLINE TEXTBOOK: CHAPTER 3Understanding the Atom

Lesson 1: Discovering Parts of an Atom

USOE Objective: Describe the structure of matter in terms of atoms and molecules.

LEARNING OBJECTIVESPeople in their 30s who are finishing student loan and credit card

payments…

People in their 40s who are saving for retirement and planning for education costs…

People in their 50s who are saving for retirement and paying for college…

People in their 60s who are “officially” retiring from work…

Everyone!

Atom

Nucleus

Electrons

ProtonsNeutrons

Electron Cloud

HOW DID WE GET TO OUR CURRENT UNDERSTANDING?

Atomic Theory

Early Atoms

Today’s Model

ASSIGN INVESTMENT GOALS

Pre-Retirement(Phase I)

Accumulation

Long-term growth

Consistent savings

Time to recover

Post-Retirement(Phase II)

Distribution

Current income

NO savings

Lack of recovery time

Written Financial Plan

JOHN DALTON (1766-1844)

One of the first to build on Democritus’ model of matter.

All matter is made of atoms that…Determined atoms cannot be divided, created, or destroyed.

Cannot be converted into atoms of another element.

Are identical to other atoms of the same element.

Are different from atoms of another element.

Combine in specific ratios.

Dalton’s Model

UNDERSTANDING RISK/REWARDRisk Planning

RISK

REWARD

Cash Income Growth

Cash Income Growth

HIG

HLOW

HIERARCHY OF INVESTMENT SAVINGS

Taxable InvestmentsFund brokerage account

Max out 401kMax out 401k

Roth IRAFully fund Roth IRA

Match 401kMatch employer contributions

Emergency Cash Savings3-6 months fixed expenses

Accumulation

YOUR BUCKETS…

Cash• Emergency needs• Sleep-well-at-night cash

Income• Manage volatility• Ensure you are generating

enough income to live on

Growth• Counter inflation and

appreciate capital over time

Bucket Approach

Cash Income Growth

YOUR BUCKETS…

Cash• Emergency needs• Sleep-well-at-night cash

Income• Manage volatility• Ensure you are generating

enough income to live on

Growth• Counter inflation and

appreciate capital over time

Fill Buckets

GrowthIncomeCash

“Know what you have and why you need it…”

IncomeGrowthCash

MANAGE YOUR ALLOCATIONPHASE I

Cash•Emergency needs

•Sleep-well-at-night cash

Income•Ensure you are generating enough income to live on

Growth•Counter inflation and appreciate capital over time

Monitor & Review Your Progress

MANAGE YOUR ALLOCATIONPHASE II

“Know what you have and why you need it…”

IncomeGrowthCash

Cash•Emergency needs

•Sleep-well-at-night cash

Income•Ensure you are generating enough income to live on

Growth•Counter inflation and appreciate capital over time

ECONOMIC/INVESTMENT DATA

Year 1 Year 2 Year 3 Year 401234567 Insert Your Own Timely Data

BondsCashStocks

Retu

rns

SUCCESSFUL RETIREMENT Assess what phases of the investment cycle you have accomplished…

If you’re ready to move forward, you can visit Fidelity, Schwab, Vanguard, or [insert firm name] for help.

Don’t feel comfortable working alone? Visit www.napfa.org to locate a Fee-Only Advisor in your area.

Wes Moss, CFP®Chief Investment StrategistCapital Investment Advisors, Inc.200 Sandy Springs Place, Suite 300Atlanta, GA 30328404-531-0018www.yourwealth.com

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