Jake is looking forward to retirement and hopes to be able to retire (stop working) when he is 65. In order to maintain his desired standard of living, Jake estimates that he will need to save $1,200,000. 1. Help Jake see the value of using his employer's 401(k) plan. To do this, estimate what monthly contribution he needs to reach his goal if he does NOT use the 401(k) and get the match. Use a 9.5% rate of return and $0 current balance for 41 years. Can he afford to invest this amount each month on his current budget? 2. Next, factor in how much less he must contribute each month if he can claim the employer match of 50% that ends at 6% of his salary. To do this, take your calculated monthly contribution from #1 and divide it by 1.5. Discuss how much easier his savings goal will be with this free money from his employer