ib_p03_formatting - Ret ir ement Planning and 401K Plans...

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Unformatted text preview: Ret ir ement Planning and 401K Plans June 13, 2007 John Doe Agenda The I mpor t ance of 401K Plans Benefit s of a 401K Plan Financial Example Next St eps The I mpor t ance of 401K Plans 401K 's ar e an impor t ant par t of r et ir ement planning I t 's never t oo lat e t o st ar t Employer s cont r ibut e mat ching funds M any or ganizat ions allow "acceler at or s" for employees 50 year s of age and over Relax and wat ch your r et ir ement money gr ow! Benefit s of a 401K Your cont r ibut ions ar e pr e-t ax money Your money gr ows t ax-defer r ed You pay less income t axes Your money is pr ofessionally managed Ther e ar e a var iet y of funds t o invest in Financial Example Pr epar ed for John Doe Wit hout 401K cont r ibut ion: Wit h 8% 401K cont r ibut ion: Base: 401K : FI CA: $50,000 $ 4,000 $ 6,750 Base: $50,000 401K : $ 0 FI CA: $ 6,750 Taxes: $ 11,000 (22% t ax br acket ) Taxes: $ 9,200 (20% t ax br acket ) Equals $32,250 annually Equals l $30,050 annually Savings aft er 10 year s at 6% Next St eps Decide how much money you wish t o cont r ibut e Choose fr om t he following funds Magellan Fidelity Dreyfus a Enr oll wit h your employer Set up online access t o your account ...
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This note was uploaded on 04/08/2008 for the course CISC 104 taught by Professor Lynch during the Spring '08 term at Northampton Community College.

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ib_p03_formatting - Ret ir ement Planning and 401K Plans...

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