Age      Retirement Age   Current Income
      55             65             $125,000 
      
      Employee makes the maximum contribution of $9,240 and has $200,000 in plan, 
      with a low-risk allocation: 75% in bonds and 25% in large-company stocks. The 
      expected return is 8.8%.
      
      SUGGESTED ALLOCATION
      
      INTERNATIONAL STOCKS                                     Risk level
            20%                                                 Moderate
      
      SMALL-COMPANY STOCKS                                   Expected return
            20%                                                  11.1%
      
      LARGE-COMPANY STOCKS                                  Value at retirement
            11%                                                 $800,000
      
           BONDS
            49%
      
      
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