You have just graduated USC and are starting you new job as financial analyst. Here are a few details:

• 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 1
• You have the following funds available to you in your 401k plan:
  1. Vanguard Total Stock Market Index VTSAX
  2. Vanguard Total International Stock VTIAX
  3. Vanguard Total Bond VBTLX
  4. Vanguard Total Global Bond VGCIX

Please answer the following questions:

1. 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?
2. 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
3. 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.
4. 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.
5. 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.