401Ok(403B) Spreadsheet
Studying Targets:
1. Familiarize students with the 401Ok(403B) retirement plan
2. Encourage students to enroll in 401Ok (403B)
three. Decide month-to-month price of enrolling in 401Ok (403B) retirement plan
four. Apply future worth ideas to find out quantity of retirement financial savings
5. Talk about the intent of the 401Ok (403B)retirement account
____________________________________________________________________________
Project: The aim of this paper is to quantify the potential whole retirement financial savings at post-graduation intervals for students.
1. Create a spreadsheet to find out retirement financial savings utilizing the following standards.
Annual Compensation: $60,000 (month-to-month $5,000)
401Ok (403B) Contribution % 6%
Firm match 50% as much as 6% (e.g. three%- 50% x 6%)
Tax Fee 25%
Annual Funding Return Fee eight%
In your spreadsheet, every of those fields needs to be changeable. For instance, if change the base pay to $48,000, your spreadsheet will calculate new retirement quantities. The intent of this train can also be so that you can learn to do what if Assessment for any of the key inputs on retirement financial savings. Please embody your anticipated 401Ok (403B) steadiness at 10 12 months intervals as follows: 10 years, 20 years, 30 years, 40 years. Most of you’ll be 32, 42, 52 and 62 (prepared for retirement) for these intervals.
2. Since 401Ok (403B) contributions are taken out pretax, I would love so that you can calculate the distinction in month-to-month take residence pay below two eventualities:
a. With out 401Ok (403B) contributions
b. With 401Ok (403B) contributions (trace: this quantity will probably be decrease, however will probably be offset by your financial savings web of taxes)
The intent of this calculation is to find out how a lot your take residence (paycheck) will probably be diminished when you enroll in a 401Ok (403B).
Submission:
Your group submission will solely be an excel spreadsheet that you’ll current in the classroom. No powerpoint or phrase doc is required.
Bear in mind, there isn’t a proper or flawed reply. The intent of this project is to encourage you to suppose critically about retirement financial savings when you might have the alternative submit graduation to find out if you wish to enroll in your organization or group’s 401Ok (403B).
File naming conference:
Key phrase: 401Ok
Your file title (excel) needs to be Group#401Ok (e.g. Group1401Ok)
You’ll submit an excel file solely in D2L.
——–
Spreadsheet for 401Ok (403B)
Targets of Studying:
1. Introduce students to the 401Ok(403B) retirement plan.
2. Encourage students to take part in 401Ok plans (403B)
three. Calculate the month-to-month price of becoming a member of a 401Ok (403B) retirement plan.
four. Use future worth ideas to calculate the quantity of retirement financial savings
5. Go over the objective of the 401Ok (403B) retirement account.
The aim of this paper is to quantify students’ potential whole retirement financial savings at post-graduation intervals.
1. Make a spreadsheet to calculate retirement financial savings based mostly on the following standards.
Annual Wage: $60,000 (Month-to-month Wage: $5,000)
401Ok (403B) Contribution Proportion 6%
The corporate will match as much as 6% of your contribution (e.g. three % – 50 % x 6 % )
The tax price is 25%.
Annual Funding Return Fee of eight%
Every of those fields in your spreadsheet needs to be editable. For instance, suppose
