Project OverviewProject Overview

Retirement Project

Computing Environments--Friday

Diane Camaioni

April 5, 2002

Project GoalsProject Goals

Show why it is better to start early.Show three investments that can

help earnings grow.Show a plan to save for retirement.

Entering the Job MarketEntering the Job Market

Starting a career in business as a MIS specialist is a highly desirable field.

The starting salary for someone with a Business degree and an MIS specialization averages $30,000. (This is also a very conservative estimate for the South Jersey area.)

FOR MORE INFO...

http://www.HotJobs.com

Salary IncreasesSalary Increases

The expected salary increase is estimated at 4% per year. The 4% is representative of cost of living increases as well as potential bonuses and merit-based salary increases.

Saving EarlySaving Early

To begin saving…..start with a 5% salary investment. Increase the percentage every 5 years by 1% until 10% is reached.

In this way, you can analyze your financial situation and adjust your investments with what is comfortable during that stage of life.

Investment Analysis 1Investment Analysis 1

AMERICAN FUNDS AMCAP A

Provides long-term growth of capital.

StrengthsStrengths

Special emphasis to companies with rapid growth potential in expanding sectors of the U.S. economy.

Invests in established growth companies with proven records of steady above-average earnings and a growth rate faster than that of the general market.

WeaknessWeakness

73.51% of asset allocation is in U.S. Stocks.

Investment Analysis 2Investment Analysis 2

AMERICAN CENTURY VALUE INV

Seeks long-term capital growth first, with income as a secondary objective.

FOR MORE INFO...

on all investments…….http://www.quicken.com

StrengthsStrengths

Invests in medium- to large-sized companies for long-term capital growth with less volatility than more aggressive funds.

Moderate risk and moderate return potential with moderate price fluctuation.

WeaknessWeakness

84.02% asset allocation is in U.S. Stocks.

Investment Analysis 3Investment Analysis 3

Fidelity Select Health Care

Offers broad health-care exposure, with drug firms being its largest position and the drivers of its performance.

StrengthsStrengths

Competitive long-term returns with relatively modest volatility.

Invests at least 80% of assets in equity securities of companies in the health-care industry that include companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine.

WeaknessWeakness

Below average risk but below average return.

True Value of Compound InterestTrue Value of Compound Interest

Compound Interest shows geometric growth in savings.

Save early at modest safe return rates.

How Saving Early HelpsHow Saving Early Helps

40 Years

Saving from the first year on a job can amount to significant savings. $0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

1st Y

ear

10 Y

ear

20 Y

ear

30 Y

ear

40 y

ear

Invest 1Invest 2Invest 3

How Saving Early HelpsHow Saving Early Helps

30 Years

Beginning to save in the 10th year of a job accumulates to considerable savings.

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

10Year

20Year

30Year

40Year

Invest 1Invest 2

Invest 3

How Saving Early HelpsHow Saving Early Helps

25 Years

Even starting to save in the 15th year of employment adds up.

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

15Year

20Year

30Year

40Year

Invest1Invest2Invest3

In Summary…..Save Early, In Summary…..Save Early, Retire As a Millionaire!Retire As a Millionaire!

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

1stYear

10thYear

20thYear

30thYear

40thYear

Total InvestmetSavings