Automatic Investment Plan - AIP

  

It's hard for most people to plan for the long term. If she has money, the average Josie spends it. Even if she saves, that money is likely to get used eventually for something fun: vacations, new cars, lottery tickets, cases of Reese's Peanut Butter Cups. This typical spending pattern means bad news for retirement, since none of that peanut butter cup money is going away for investment.
An automatic investment plan circumvents this tendency, short-cutting people's natural instinct to spend everything they earn. The AIP automatically takes money out of a person's paycheck and puts it into a retirement account.
Basically, the deposit into the retirement account comes out like taxes or social security. It becomes just another withdrawal, and never becomes part of a person's take-home pay. This allows the retirement account to build up without a person having to make the conscious decision to save on a regular basis.

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another state employees pension that's backed up by a state that's going

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bankrupt. Hi, California, Hi Illinois. well we're looking at you. all right people

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a pension is that the employer essentially forces you to put away money

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how nice. or at least be sure you invest it well on a salary of 75 grand a state [gambling table shown]

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employed ditch-digger might get a contribution of say 10 grand a year into

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she you know digs ditches for the state. and in some states where the unions are

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