How well you live in retirement depends in part on how well you run your 401(k) 
      plan. The amounts you and your company contribute are important, but even more 
      critical are the investments you choose. Here are four examples of people at 
      various ages and how they might launch or improve a 401(k) investment program.*
                    JUST STARTING
      Age               Retirement Age         Current Income
      27                     67                    $40,000
      Contributes 5% of income
      SMALL-COMPANY STOCKS                         Risk level
              21%                                     High
      LARGE-COMPANY STOCKS                        Expected return
              35%                                      11.2%
             BONDS                                Value at retirement
              30%                                     $2.2 million
      INTERNATIONAL STOCKS                         Risk level
              44%                                     High
      SMALL-COMPANY STOCKS                        Expected return
              26%                                      13.2%
             BONDS                                Value at retirement
              30%                                     $3.6 million
      If employee boosts his contribution to 6% of income, the final value grows to 
      $4.4 million.
      *These examples were calculated using Prosper by Ernst & Young, a 
      personal-finance software program. It uses the following assumptions: The 
      maximum contribution an employee may make is $9,240--the 1995 limit; the 
      employer puts in $1 for every $4 the employee contributes--up to $5,000; and 
      there are 3% annual increases in income--and thus in contributions and in the 
      employer's maximum match.
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