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Instructions: Answer the questions below, based on the following information provided: - You are single, age 25 - You want to retire at age 55

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Instructions: Answer the questions below, based on the following information provided: - You are single, age 25 - You want to retire at age 55 - Your employer offers a 401(k) retirement plan; your maximum contribution is 10%, which your employer matches 50% - Your 401(k) limestment options are as follows (average rates of return and beta shown in parenthesis): - U.S. Treasury bond fund (expected average annual return - 3 3s; beta = 0) - Corporate bond fund (expected average annual return = 6\%; beta = .5) - S\&P SOO index fund (expected average annual retum = 12\%; beta = 1); assume fund loses 15% every 10 years - Emerging market stock fund (expected annual average return = 18\%; beta = 1.5); assume fund loses 25% every 10 years - Your annual average salary until retirement is $120,000 A. 401(k) Retirement Plan 1. What do you want your contribution percentage to be? 2. What is your total annual contribution to the plan? 3. Enter your 401(k) contribution allocation percentages in the table below (must a 100m ). Bs you hive exough te retive at age sst toplin vear anwes If antwer te a is 707, whit poittle adjutrents can wes mais te peath your goal? Instructions: Answer the questions below, based on the following information provided: - You are single, age 25 - You want to retire at age 55 - Your employer offers a 401(k) retirement plan; your maximum contribution is 10%, which your employer matches 50% - Your 401(k) limestment options are as follows (average rates of return and beta shown in parenthesis): - U.S. Treasury bond fund (expected average annual return - 3 3s; beta = 0) - Corporate bond fund (expected average annual return = 6\%; beta = .5) - S\&P SOO index fund (expected average annual retum = 12\%; beta = 1); assume fund loses 15% every 10 years - Emerging market stock fund (expected annual average return = 18\%; beta = 1.5); assume fund loses 25% every 10 years - Your annual average salary until retirement is $120,000 A. 401(k) Retirement Plan 1. What do you want your contribution percentage to be? 2. What is your total annual contribution to the plan? 3. Enter your 401(k) contribution allocation percentages in the table below (must a 100m ). Bs you hive exough te retive at age sst toplin vear anwes If antwer te a is 707, whit poittle adjutrents can wes mais te peath your goal

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