Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Recalculate the percentage of your monetary investment which you will direct your employer to deposit into each individual fund, in order for you to obtain

  1. Recalculate the percentage of your monetary investment which you will direct your employer to deposit into each individual fund, in order for you to obtain your desired final personal ownership. (What is the percentage of these contributions which will be allocated to each of the two fund you selected in order to obtain your desired final asset allocation of 70% stocks and 30% bonds?)image text in transcribed
Mutual Fund Personal Asset Allocation for your employer sponsored 401(k) On the first day of your job, your employer has discussed with you the many benefits offered by the employer to you as an employee. One of these benefits is an employer contribution into your 401(k) plan provided by the employer. You have decided your will deposit 10% of your paycheck into your employer's 401(k) plan. Your employer is going to match your contribution up to 5%. Your salary is $60,000. Your employer gave you an extensive list of mutual funds from which you were to select the funds you wish to utilize in your 401(k). From the list of funds provided by your employer, you have selected the following two funds with the percentage of asset classes each fund owns: Stock Growth Fund: Conservative Mix Fund: Cash 2% Cash 3% Stocks 98% Stocks 25% Bond 0% Bonds 72% Total 100% Total 100% Your employer has asked you to tell them what percentage of your contribution and the matching contribution by the employer, will be made into each fund. In taking the Vanguard Asset Allocation preference in Professor Hicks' class, it was determined that your preferred asset allocation based on your risk tolerance was 70% stocks and 30% bonds. Mutual Fund Personal Asset Allocation for your employer sponsored 401(k) On the first day of your job, your employer has discussed with you the many benefits offered by the employer to you as an employee. One of these benefits is an employer contribution into your 401(k) plan provided by the employer. You have decided your will deposit 10% of your paycheck into your employer's 401(k) plan. Your employer is going to match your contribution up to 5%. Your salary is $60,000. Your employer gave you an extensive list of mutual funds from which you were to select the funds you wish to utilize in your 401(k). From the list of funds provided by your employer, you have selected the following two funds with the percentage of asset classes each fund owns: Stock Growth Fund: Conservative Mix Fund: Cash 2% Cash 3% Stocks 98% Stocks 25% Bond 0% Bonds 72% Total 100% Total 100% Your employer has asked you to tell them what percentage of your contribution and the matching contribution by the employer, will be made into each fund. In taking the Vanguard Asset Allocation preference in Professor Hicks' class, it was determined that your preferred asset allocation based on your risk tolerance was 70% stocks and 30% bonds

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Survey Of Financial And Managerial Accounting

Authors: Roger H. Hermanson, Roland F. Salmonson, James D. Edwards

5th Edition

025606976X, 978-0256069761

More Books

Students also viewed these Accounting questions

Question

Stages of a Relationship?

Answered: 1 week ago