• 53 minutes

Lesson Prep

  • Note most members will not be ready to start investing
  • Bring a calculator


  • Welcome to Lesson 7! In this lesson, we’ll take a deep dive into investing so you’re ready when the time comes for you to start investing.
  • Review the Baby Steps
  • Do a budget checkup
    • Everyone should have a fun money line item in their budget each month. This is money to use however you want. How has this helped you stick to your budget?
  • Instruct everyone to turn to page 105 in their Member Workbook
  • Take attendance and watch the video
  • Look for your coordinator cue before the One-Minute Takeaway to get ready for the Activity


  • When you follow the baby steps and invest 15% of your income over time, you will become a baby steps millionaire!
  • Lower your risk by diversifying your investments across four types of mutual funds
  • Keep it simple and never invest in things you do not understand

Tax Plans

  • Tax deferred plans
    • 401(k)
    • IRA
    • 403(b)
    • 457
  • After tax plans that grow tax free
    • Roth 401(k)
    • Roth IRA
    • Roth 403(b)
    • Roth 457
  • Diversify across 4 types of mutual funds
    • Growth and income
    • Growth
    • International
    • Aggressive growth

How to Invest 15% of your income?

  • If your company offers a Roth 401(k) with a match and good mutual fund options:
    • Invest the entire 15% in that plan.
  • If your company offers a traditional 401(k) with a match:
    • Invest an amount equal to the match.
    • Next, invest up to the limit in a Roth IRA.
    • If you have a higher income and hit the Roth IRA limit before you’ve invested 15% of your income, go back to the 401(k) and finish your investing there.


  • Everyone turn to page 111 and take a few minutes to work through the Activity. Married couples, work on this together. I’ll be walking around the room if you need help.

Discussion Questions

  1. Are you on track or off track to reach your retirement goals? How has this lesson helped you feel more confident in your future?

  2. Which tax-advantaged plans are available to you today? What’s the fi rst step you’re going to take to figure out where and how you need to invest?

  3. Building wealth is the key to creating a legacy that will outlive you. What comes to mind when you think about the kind of legacy you want to leave?

  4. After watching this lesson, do you believe that investing in mutual funds over a long period of time is the best way to build wealth?

Wrap Up

  • Go to page 113 and read through the action steps
  • Keep working on your budget
    • You need to be aware of how much you have spent on certain categories
    • You need to make a monthly budget
    • You need to be having Budget Committee Meetings