$30$ LG$9-$Understand how retirement saving arrangements are associated with tax shelters and investment products.

$31$

Q$5$ Application Time! Jessica will take the appropriate risk she needs to prepare for retirement. She has no retirement savings yet. Her employer will match $-$ use the following information to determine the overall retirement saving needs.

$*$Step $1$: Find out how much should be saved each year. For the website link and numbers to input, see the "Info Sheet". Place the $1$st year savings goal in the "Total Amount Saved" box. For $401$k employee and employer contributions, please look at the "Info Sheet" for answers. You will insured the dollar amount, not the percentage in the table below.

$**$Step $2$: How much should be contributed to a $401k,$ based on maxing out the employers match? See "Info Sheet" for the percentage of employee$/$employer match limits$.$ Research a fund analyzer to compare the investment vehicle choices $($DNVYX$,$ JIFIX, JAQAX$)$ within the employer's $401$k plan $($focus on fees, profits$/$losses$).$

$\backslash$table$[[,,,],[$ving $401k$ Investment Vehicle choices:,DNVX$,$MIEIX,JAQAX$]]$

"Step $3$: Pick the most appropriate retirement account choice:

The following Traditional or Roth IRA choices: Target Date Fund Apple Stock $10$ yr$.$ Treasury Note Research own choice

$43$

$44$

$45$

$46$

$32$

$34$

$35$

$37$

$\frac{38}{39}$

$40$

$41$

$42$

$43$

$45$

$4$

$4$

Step $2-$ Choice Explanation $($discuss the amount and reason for investment vehicle choice$)$

$***$Step $3$: Amount to invest in an IRA $($your selection$)$

$\backslash$table$[[$Traditional IRA,$],[$ROTH IRA,$]]$

Sten $3-$ Choire Fxnlanation $($discuss the amount and reason for the retirement account choice$)$