PART 3: Retirement Comparison 401 k investments are expected to earn a 5.99% annual return. Assume that 7% of gross monthly income is to be set aside for 401 k investment. Your future employer will match your 401k investments 50%, but your high school counterpart does not receive help with their retirement plan from their employer. Excel: Use Excel to determine the balance on such a 401 k after 30 years of investment for the high school graduate and for your expected income. Find the absolute and relative difference between those two balances. Experts recommend having 10 times your salary in funds when you retire. Use Excel to determine how many years it would take for the high school graduate and for your expected investment to reach 10 times your income. Paper: Explain in your reflection paper what Excel function was used for these calculations. Your reflection paper should contain at least one statement comparing the value of the 401 k investment of the high school graduate and for your expected salary. Compare how many years it takes for the investments to reach 10 times your salary. Reflect on the values you found, do these values meet your expectations, or will you change your investment strategy? 3 Retirement Comparison 43 44 45 45 APR Years of Investment Do of Monthly Income Your Contribution Employer Contribution Total Contribution Value of 401() at the end of 40 years 48 50 57 52 10 times your yearly income Years to reach 10 times your income Value of 401(k) after that many years PART 3: Retirement Comparison 401 k investments are expected to earn a 5.99% annual return. Assume that 7% of gross monthly income is to be set aside for 401 k investment. Your future employer will match your 401k investments 50%, but your high school counterpart does not receive help with their retirement plan from their employer. Excel: Use Excel to determine the balance on such a 401 k after 30 years of investment for the high school graduate and for your expected income. Find the absolute and relative difference between those two balances. Experts recommend having 10 times your salary in funds when you retire. Use Excel to determine how many years it would take for the high school graduate and for your expected investment to reach 10 times your income. Paper: Explain in your reflection paper what Excel function was used for these calculations. Your reflection paper should contain at least one statement comparing the value of the 401 k investment of the high school graduate and for your expected salary. Compare how many years it takes for the investments to reach 10 times your salary. Reflect on the values you found, do these values meet your expectations, or will you change your investment strategy? 3 Retirement Comparison 43 44 45 45 APR Years of Investment Do of Monthly Income Your Contribution Employer Contribution Total Contribution Value of 401() at the end of 40 years 48 50 57 52 10 times your yearly income Years to reach 10 times your income Value of 401(k) after that many years