Table: An Early Course Correction
Age Retirement Age Current Income 35 67 $70,000 Employee contributes 6% of his income to 401(k) and has so far amassed $15,000; $10,000 in a bond fund and $5,000 in a large-company stock fund. It's a low-risk strategy with an expected annual return of 8.4%. SUGGESTED ALLOCATION LARGE COMPANY STOCKS Risk level 67% High BONDS Expected return 33% 11% Value at retirement $2.2 million 0R INTERNATIONAL STOCKS Risk level 25% High SMALL-COMPANY STOCKS Expected return 20% 13.3% LARGE-COMPANY STOCKS Value at retirement 23% $3.5 million BONDS 27%
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