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Latoya and Sam want your help with retirement and investing. Latoya and Sam both have 401k plans at work. They are currently saving 2% out of their $115,000 combined salaries and their employers match $1 per $1 up to 5% (100% match). Their December 31st combined balance was $4,000. Latoya has figured out they want to have $5,000,000 by the time they retire. They are currently 27 and plan to retire at age 69. The expected investment return is 8%.
FINA 2770 - Family Financial Plan Project - Part 3 - Retirement and Investments (50 Points) Latoya and Sam want your help with retirement and investing. Latoya and Sam both have 401k plans at work. They are currently saving 2% out of their $115,000 combined salaries and their employers match $1 per $1 up to 4% ( 100% match). Their December 31st combined balance was $4,000. Latoya has figured out they want to have $5,000,000 by the time they retire. They are currently 27 and plan to retire at age 69 . The expected investment return is 8%. Use the table below to calculate the % they need to contribute from their paychecks moving forward. Sequence of investing: Use this table to determine the sequence, account type (401k, IRA, Roth IRA), and the dollar amount to save in each account per year from Sam and Latoya's budget (not including ER contributions). The following are their investment options in their 401ks : PXSCX, PRSVX, OLVAX, PGSYX, SBUX, FKRCX, SWISX, SWYOX, PARMX, TRBUX Address these questions on Canvas (and in your presentation) - Which investment option is best for Socially Responsible investing? - Which investment option has the lowest expense ratio? - Which investment option has the largest expense ratio? - Which investment option offers the most access to international investments? - Which investment option is the simplest or easiest? In your presentation only: - What is your investment choice or choices recommendation and why? (Provide justification for your investment choices.) Be sure to check your answers in Canvas. FINA 2770 - Family Financial Plan Project - Part 3 - Retirement and Investments (50 Points) Latoya and Sam want your help with retirement and investing. Latoya and Sam both have 401k plans at work. They are currently saving 2% out of their $115,000 combined salaries and their employers match $1 per $1 up to 4% ( 100% match). Their December 31st combined balance was $4,000. Latoya has figured out they want to have $5,000,000 by the time they retire. They are currently 27 and plan to retire at age 69 . The expected investment return is 8%. Use the table below to calculate the % they need to contribute from their paychecks moving forward. Sequence of investing: Use this table to determine the sequence, account type (401k, IRA, Roth IRA), and the dollar amount to save in each account per year from Sam and Latoya's budget (not including ER contributions). The following are their investment options in their 401ks : PXSCX, PRSVX, OLVAX, PGSYX, SBUX, FKRCX, SWISX, SWYOX, PARMX, TRBUX Address these questions on Canvas (and in your presentation) - Which investment option is best for Socially Responsible investing? - Which investment option has the lowest expense ratio? - Which investment option has the largest expense ratio? - Which investment option offers the most access to international investments? - Which investment option is the simplest or easiest? In your presentation only: - What is your investment choice or choices recommendation and why? (Provide justification for your investment choices.) Be sure to check your answers in Canvas
