1 / 11

Comparison of Various Personal Retirement Investments

Comparison of Various Personal Retirement Investments. EGR 403-01 Summer 2005 Group #8 Members: Jon Kai-Tsun Chan Steven Doyle Simon Margolis Thomas Nance Tal Bezalel Nehmad. Purpose. Research Various Investment Options For Retirement How Do They Compare To Each Other?

odina
Download Presentation

Comparison of Various Personal Retirement Investments

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Comparison of Various Personal Retirement Investments EGR 403-01 Summer 2005 Group #8 Members: Jon Kai-Tsun Chan Steven Doyle Simon Margolis Thomas Nance Tal Bezalel Nehmad

  2. Purpose • Research Various Investment Options For Retirement • How Do They Compare To Each Other? • Which Yields Most Money For Retirement? • Is It Worth The Risk?

  3. Sample Investor Background • Age : 25 Years • Projected Retirement Age : 70 Years • Life Expectancy : 90 Years • College Graduate, Starts Work At Age 22, Starts Saving For Retirement At Age 25 • Starting Salary : $55k/year With $1000 Increase Each Year To Retirement • Savings For Retirement : 10% Of Salary Per Year • Investor Is Married; Accounted For When Filing Taxes

  4. Assumptions • General Average Inflation Rate : 3% • No Massive Inflation/Depression Eras • No Situations Requiring Taking Money Out Of Retirement Fund(s) • Stable Job(s)

  5. Investment Options • IRA Fund - Roth vs. Traditional • Company 401(k) - Personal Contribution Only vs. Company Matching & CD Purchase • Mutual Funds - Domestic vs. International • Annutities - Fixed vs. Variable • IRA, 401(k), Mutual Funds & Stock Market At Various Levels - Risk vs. Reward

  6. Roth vs. Traditional Comparing Earning Power For Each Under Equal Circumstances: - Assume Contributions Are Same For Both IRAs - Taking Into Account Taxes - Not Including Early Withdrawal Penalties For Traditional - Balance Of Saved Salary Will Be Saved In Credit Union At 2% Interest Factors For Consideration: - Traditional Contributions Are Done Pretax & Taxed Upon Withdrawal - Roth Contributions Are After Tax Without Tax Upon Withdrawal - Maximum Yearly Contribution, Raised Upon Age 50 - Age Requirements - Additional Circumstances Set Forth By Investor & Assumptions IRA Account

  7. 401(k) • Comparison Of Two 401(k) Options: - All 10% To 401(k) - Half Of 10% To 401(k) With 50% Company Match - Other Half To CD With 4% Rate; Compounded Monthly • Rate Of Return – 5%

  8. Annuities • Fixed vs. Variable • Comparison Of Earning Power Based On: - Fixed Requires $10k minimum & 5+ Years Time - Variable Requires 10+ Years - Interest Rate - Contribution Amount - Risk Levels - Tax Deferral - Periodic Payment Option & For How Long - Age Requirements

  9. Mutual Funds • Domestic vs. International • Comparison Based On: - Contribution Amount With No Maximum - Domestic Management For International Funds - Potential Currency Fluctuations & Economic Status For International Funds

  10. Diverse Portfolio • IRA, 401(k), Mutual Funds & Stock Market At Various Levels • Professionally Managed vs. Employee-Managed • Profit vs. Risk • It Is Your Money & Your Responsibility

  11. Resources • Vanguard IRAs : Roth vs. Traditional • Fidelity IRA Accounts • Bloomberg 401(k) Calculator • CD Calculator • Fidelity Mutual Funds • The Vanguard Group • Primerica Financial Services • IRS Income Tax Tables • Fidelity

More Related