Persuasive Speech On Saving For Retirement Essay, Research Paper
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.