Directions Complete the investment chart based on the facts given for each situation. Assume each person is following
Daves advice of investing 15% of their annual household income. Remember to follow the sequence of
contributions recommended in the chapter
INVESTMENT
ANNUAL SALARY
COMPANY MATCH
4011K)
ROTH IRA
TOTAL ANNUAL
INVESTMENT
Joe
$40,000
1:1 up to 5%
Melissa
$55,000
1:2 up to 6%
Tyler & Megan
$105,000
No Match
David & Brittany
$150,000
No Match
Brandon
$35,000
2:1 up to 6%
Chelsea
$28,000
No Match
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 IRA.
Tyler and Megan can each fund a Roth IRA then put the remainder in the 401(k), With no match, fund the
Roth first (based on 2013 contribution of $5,500 per individual).
David and Brittany are still within the guidelines for a married couple (based on 2013 contribution of
$5,500 per individual). After maxing out the IRA, they will fund the 401(k).
Brandon will fund his 401(k) up to the match, and then put the remainder in his Roth IRA.
Chelsea will fund her Roth IRA