Question
Milo has just become eligible for his employer-sponsored matching 401 K retirement plan. Milo is 35 and plans to retire at 65. Milo calculates that
Milo has just become eligible for his employer-sponsored matching 401 K retirement plan. Milo is 35 and plans to retire at 65. Milo calculates that he can contribute $4,800 per year to his plan. Milo's employer will match this amount. If Vidar can earn a 5 percent return on his investment, how much will he have at retirement?
How much would Milo have at retirement if he had started to contribute to this plan at age 50?
How much would Milo have if he could earn a 10 percent return on his investment beginning at age 35?
According to 2015 tax rules, 401K plans can contribute $18,000 per year. How much could Milo accumulate in his 401 K if he took advantange of this option and invested $9,000 per year, assuming his employer would match the contribution for the same 30 year period at 8%.
If the 401K plan has a 2% program maintenance fee which decreased annual returns by 2% each year, how much would the fee have cost him in total?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started