You are 25 years old and plan to retire at age 65

Your starting salary is $60,000 per year

You expect to receive annual increases of 3%

Assume all 401k contributions are done once per year on January

• You have the following fund available to you in your 401k plan: Vanguard Total Stock Market Index VTSAX
  • Assume you contribute 10% of your salary every year. Assume you have an average annual investment return of 6.5%. What will be the balance in your 401k plan at age 65?
  • Assume you contribute 10% of your salary every year. Assume you have an average annual investment return of 6.5%. Assume your employer matches your contribution on a dollar for dollar basis each year up to a maximum of 6% of your salary. What will be the balance in your 401k plan at age 65?
  • Assume that you allocate a consistent 25% to each available fund. Based on historical performance for eacxh fund (use Inception to Date), what will be your balance at age 65? Assume no company match.
  • Assume that you allocate 100% to VTSAX until age 40. Then you allocate 50% to VTSAX and 50% to VBTLX until age 65. Based on historical performance for eacxh fund (use Inception to Date), what will be your balance at age 65? Assume no company match.
  • Assume that you allocate 100% to VTSAX until age 40. Then you allocate 50% to VTSAX and 50% to VBTLX until age 50. Then you allocate 100% to VBTLX until age 65. Based on historical performance for eacxh fund (use Inception to Date), what will be your balance at age 65? Assume no company match.