You have just graduated USC and are starting you new job as financial analyst. Here...
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Finance
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:
Vanguard Total Stock Market Index VTSAX
Vanguard Total International Stock VTIAX
Vanguard Total Bond VBTLX
Vanguard Total Global Bond VGCIX
Please answer the following questions:
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.
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