Congratulations on your graduation, you are finally an engineer!! You also landed a new job at one of the well-known engineering firms in Fresno and they are offering you two different retirement plans and you need to select one plan today. Please use the following assumptions to explain what plan you would choose and why: . You are 22 years old as of today . You plan to withdraw money at 62 (40 years from now), otherwise you will incur in substantial financial penalties. Firm matches 4% of your annual compensation Your salary is $55.000 Salary increase is estimated to be 5% annually Deposits are tax-deferred on both plans Plan 1: This plan is managed by a committee of employees in the firm. The portfolio includes a mix of stocks (including the firm's own stock, technology, healthcare, etc.) Based on past performance, the investment portfolio increases 6% compounded annually Plan 2: You can manage the portfolio. However, you need to pay an annual deposit management fee of 1.5% You can make riskier choices under this plan Based on past performance, the investment portfolio has earned between 2% and 12% annually. Congratulations on your graduation, you are finally an engineer!! You also landed a new job at one of the well-known engineering firms in Fresno and they are offering you two different retirement plans and you need to select one plan today. Please use the following assumptions to explain what plan you would choose and why: . You are 22 years old as of today . You plan to withdraw money at 62 (40 years from now), otherwise you will incur in substantial financial penalties. Firm matches 4% of your annual compensation Your salary is $55.000 Salary increase is estimated to be 5% annually Deposits are tax-deferred on both plans Plan 1: This plan is managed by a committee of employees in the firm. The portfolio includes a mix of stocks (including the firm's own stock, technology, healthcare, etc.) Based on past performance, the investment portfolio increases 6% compounded annually Plan 2: You can manage the portfolio. However, you need to pay an annual deposit management fee of 1.5% You can make riskier choices under this plan Based on past performance, the investment portfolio has earned between 2% and 12% annually