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-You have just graduated and are starting you new job as financial analyst. Here are a few details:

-You are 25 years old and plan to retire at age 65

-Your starting salary is $60,000 per year

-You expect to receive annual increases of 3%

-Assume all 401k contributions are done once per year on January 1

-You have the following funds available to you in your 401k plan:

1.Vanguard Total Stock Market Index VTSAX

2.Vanguard Total International Stock VTIAX

3.Vanguard Total Bond VBTLX

4.Vanguard Total Global Bond VGCIX

Please answer the following:

-Assume you contribute 10% of your salary every year. Assume you have an average annual investment return of 6.5%. What will be the balance in your 401k plan at age 65?

-Assume you contribute 10% of your salary every year. Assume you have an average annual investment return of 6.5%. Assume your employer matches your contribution on a dollar for dollar basis each year up to a maximum of 6% of your salary. What will be the balance in your 401k plan at age 65?

-Assume that you allocate a consistent 25% to each available fund. Based on historical performance for each fund (use Inception to Date), what will be your balance at age 65?

-Assume no company match. Assume that you allocate 100% to VTSAX until age 40. Then you allocate 50% to VTSAX and 50% to VBTLX until age 65. Based on historical performance for each fund (use Inception to Date), what will be your balance at age 65?

-Assume no company match. Assume that you allocate 100% to VTSAX until age 40. Then you allocate 50% to VTSAX and 50% to VBTLX until age 50. Then you allocate 100% to VBTLX until age 65. Based on historical performance for each fund (use Inception to Date), what will be your balance at age 65?

Assume no company match.

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