Question
You plan to begin contributing each pay period to your employers 401k plan at the beginning of the month in which you turn 25. You
You plan to begin contributing each pay period to your employers 401k plan at the beginning of the month in which you turn 25. You will be paid twice a month. Your salary is $52,800 and your employer will match your contribution up to 4% of your salary. You can contribute more, but your employer stops at 4%. You decide to contribute 6% of your salary, making contributions each pay period that include both your and your employers portions. How much will you have saved for retirement if you earn 6.4% over time and you retire at age 65? Assume the same salary over the years.
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