make_your_money_grow8.07 - Make Your Money Grow Directions Assume each person is following Daves advice of investing 15 of his or her annual household

make_your_money_grow8.07 - Make Your Money Grow Directions...

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Make Your Money Grow Directions: 1. Assume each person is following Dave’s advice of investing 15% of his or her annual household income. 2. Follow the sequence of contributions recommended in the lesson. Always take advantage of a match and fund 401(k). a. Above the match, fund Roth IRAs. b. If there is no match, start with Roth IRAs. 3. Complete 15% of income by going back to your 401(k) or other company plans. 4. Carefully review each investor's information prior to completing the chart. 5. You will need a calculator to complete this activity. Investors: Joe will take advantage of the company match (5% of salary) then put the rest in a Roth IRA. Melissa will fund the 401(k) up to the match and put the remainder in her Roth. Tyler and Megan can each fund a Roth then put the remainder in the 401(k). With no match, fund the Roth first (based on 2013 contribution of $5,500 per individual). Adrian is not eligible to open a Roth IRA because he makes too much money. He will put his entire 15% into

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