How to Avoid the Biggest Mistakes 251 Answer:Your homework assignment is to reread Chapter 23, "Social Security and Medicare." The average monthly check that a Social Security recipient will receive for 2001 is $845, and for couples it is $1,410. Can you live on that? Most people can't. Social Security is also struggling with some major dollar problems and is in need of an overhaul. Younger taxpayers will be the hardest hit for they will be paying into a system that may not give them much in return at retirement. Savings Question #4:I know I can never afford to retire; why should I live for tomorrow when I can enjoy it today? Answer:What if you can't work any longer? What if you become old and feeble? Who will care for you? Social Security probably isn't going to be able to. There is a new slogan you ought to adopt, "Save Now, Play Later." When you're young it doesn't take much of a sacrifice to start saving for your future, especially if you have a 401(k) plan available to you. And if there is a company match, you are walking away from free money if you don't contribute. Savings Question #5:If I don't expect to be at this company very long, it doesn't make much sense saving in the 401(k), right? Answer:Yes it does! 401(k) plans are portable. You can take the money with you. You will be able to roll it into another 401(k) plan at your new job (if they have a 401(k) plan that allows rollovers), or you can roll it into an IRA (see Chapters 9, "IRAs Versus 401[k]s--Which Is Better?" and 21, "No 401[k]? No Problem!"). You will also be putting that money away pre-tax, so you will save on your income taxes as well. It always makes sense to contribute to your 401(k). Savings Question #6:I buy U.S. Savings Bonds where I work. They are safe, and I won't have to pay taxes on the interest if I use them for the kids' education. Is this wrong? Answer:Not really wrong, but not the best investment for the kids' education. The Savings Bond program you are referring to requires that the bonds be in the parent's name, and the bonds can be