Below you will see notes from the lesson labeled Dave Ramsey + the Make Your Money Grow worksheet. AssignmentFunding 401(k)s and IRAs: Make Your Money Grow, Year After Year

For this assignment, you will complete an investment chart based on the salary and benefit information of several investors. To complete the activity:

1. Download the Make Your Money Grow document it is below ---- (attached)
2. Assume each person is following Dave?s advice of investing 15% of his or her annual household income.
3. Follow the sequence of contributions recommended in the lesson. Always take advantage of a match and fund 401(k).
   1. Above the match, fund Roth IRAs.
   2. If there is no match, start with Roth IRAs.
   3. Complete 15% of income by going back to your 401(k) or other company plans.
4. Carefully review each investor's information prior to completing the chart.
5. You will need a calculator to complete this activity.

Make Your Money Grow Directions: 1. Assume each person is following Dave's advice of investing 15% of his or her annual household income. 2. Follow the sequence of contributions recommended in the lesson. Always take advantage of a match and fund 401(k). a. Above the match, fund Roth IRAs. b. If there is no match, start with Roth IRAs. 3. Complete 15% of income by going back to your 401(k) or other company plans. 4. Carefully review each investor's information prior to completing the chart. 5. You will need a calculator to complete this activity. Investors: Joe will take advantage of the company match (5% of salary) then put the rest in a Roth IRA. Melissa will fund the 401(k) up to the match and put the remainder in her Roth. Tyler and Megan can each fund a Roth then put the remainder in the 401(k). With no match, fund the Roth first (based on 2013 contribution of $5,500 per individual). Adrian is not eligible to open a Roth IRA because he makes too much money. He will put his entire 15% into his 401(k). David and Britney are still within the guidelines for IRA contributions for a married couple (based on 2013 contribution of $5,500 per individual). After maxing out the IRA, they will fund the 401(k). Brandon will fund his 401(k) up to the match, and then put the remainder in his Roth IRA. Chelsea will fund her Roth IRA. Investment Annual Salary Company Match Joe $40,000 1:1 up to 5% Melissa $55,000 1:2 up to 6% Tyler & Megan $105,000 No Match Adrian $111,000 1:1: up to 3% David & Britney $150,000 No Match Brandon $35,000 2:1 up to 6% Chelsea $28,000 No Match C HAP T E R 8 401(k) Roth IRA Total Annual Investment Foundations in Personal Finance High School Edition