Case Study - Savings

• You are a newly hired analyst at a top company
• Your starting salary is $80,000 year
• You are attempting to save about 10% of your income
• You have the following options for savings and investment.

1. A Company 401K Plan that matches the first 6% Pretax Contributions at a 50% Match rate
2. Your own Individual Retirement Account (IRA) with a balance of $5,500.
3. Your own Roth IRA with a balance of $1,250.
4. Your brokerage account with a balance of $2,500

Based on information in the course, how much would you save each year and in which savings options would you put the money?