Learning Goals: Distinguish between the most common banking and investment products and their role in the financial planning process. Explain the importance of retirement planning and demonstrate ability to distinguish among the major retirement savings instruments Janessa is 29 years old and she is about to start her first full-time job. She is currently single, and she is willing to take the appropriate risk she needs to prepare for retirement. Her starting annual salary is $63,000 and she has no retirement savings yet. Her employer will match 100% of her contributions up to the first 4% of her salary to the companys 401(k) account. Use this link to determine his retirement saving needs: What amount do you recommend Janessa should be saving each year? (Use this amount in the Total box in the Table below.) How much of the total annual savings should she be saving in her 401(k), a Traditional IRA, and/or a ROTH IRA? Put these amounts in the table in the Amount column. Why did you pick each amount? Put your explanation in the table next to the amount. Make sure you use concepts from your text, class materials, etc. to justify your position. Janessas employer offers the following 401(k) Investment Vehicle Options: a. Davis New York Venture Fund Class Y [DNVYX] b. Aberdeen Select International Equity Fund Class [JIEIX] c. Janus Asia Equity Fund Class A [JAQAX] You can use FINRAs Fund Analyzer to look up and compare the funds Janessa has to choose from within his employers 401(k) plan. (Keep the defaults and focus on the fees, profits/losses). Using what you are learning in this class fill out the table below to help Janessa understand which options the best are. The information below accompanies the table: Please note that when you finish the table, all the boxes may or may not contain data. It is OK to have N/A or zeros in some of the boxes as long as you provide your rationale as to why you put zero(s). The following Traditional or Roth IRA Option - Use the course materials to determine which IRA option is best for Janessas situation. a. Target Date Fund b. Apple Stock c. 10 Year Treasury Note d. Your own choice (you must explain why) 1. Pick the most appropriate choice from the lists above for the investment vehicles. Then put your choices (a, b, c, d, e, f, and g) in the table. The 401(k) Investment Vehicle Options a. Davis New York Venture Fund Class Y [DNVYX] b. Aberdeen Select International Equity Fund Class [JIEIX] c. Janus Asia Equity Fund Class A [JAQAX] 2. Why did you pick each fund? Put your explanation in the table next to the Investment Vehicle Choice. Make sure you use concepts from your text, class materials, etc. to justify your position.

For explanations, use concepts from course materials! Investment Vehicle Choice | Why did you choose this amount? Account Amount Why did you choose this fund? Employee Contribution: 401(k) Choose an item Employer Contribution: If you decide to invest all or part of the total amount outside the 401(k), choose one of the following Individual Retirement Accounts: Traditionals IRA Choose an item Roth IRA S Choose an item. Total (Should equal #1 above) Add up the 4 boxes directly above this box: S For explanations, use concepts from course materials! Investment Vehicle Choice | Why did you choose this amount? Account Amount Why did you choose this fund? Employee Contribution: 401(k) Choose an item Employer Contribution: If you decide to invest all or part of the total amount outside the 401(k), choose one of the following Individual Retirement Accounts: Traditionals IRA Choose an item Roth IRA S Choose an item. Total (Should equal #1 above) Add up the 4 boxes directly above this box: S