Alex is 25 years old and he is about to start his first full-time job. He is currently single and he is willing to take the appropriate risk he needs to prepare for retirement. His starting annual salary is $55,000 and he has no retirement savings yet. His employer will match 100% of his contributions up to the first 3% of his salary to the companys 401(k) account.

1.What amount should Alex should be saving each year?

2.How much of the total annual savings should he be saving in his 401(K), a Traditional IRA, and a ROTH IRA?

3. Why did you pick each amount?