How do you feel about your performance in this activity? What did you learn about the stock market or investing? Would you consider using your own money to buy stocks or mutual funds? (10 points)
Extra Credit: Using the S&P 500 data provided in the first assignment and the current value of the S&P 500 index, calculate the positive or negative percentage change in the S&P 500 index. (The change in value statistic is for the day only, it is not a statistic that can be used for this assignment.)
Then, compare the change in the value of the S&P 500 index to your positive or negative percentage change in your account.
Question 3: Using an online retirement calculator, create a personal retirement plan. (5 points)
Here is an online calculator that you may enjoy using http://www.schwab.com/public/schwab/investing/retirement_and_planning/retirement/retirement_calculator (Links to an external site.).
Provide the name or link of the retirement calculator used.
Copy and paste the results of your estimates. You need to include one table or graph estimating the growth of your investments.
This plan must be specific and unique to you. When you create your retirement plan think about what you may want in the future along with your needs. See this assignment as a way for you to prepare for that first job out of college that will most likely include retirement benefits. Your employer will hand you a few options and it will be up to you to decide how you want to invest your contributions. Hopefully, after thinking about what you want in retirement in this assignment, setting up your 401K or IRA will not be stressful.
When thinking about the questions below do not assume that a potential mate or your children will support you in retirement. I am requiring you to support yourself in this assignment. Please keep in mind that life changes and there could be health reasons that someone in your life cannot financially support you. Do not assume any of the preset numbers in the online retirement calculators apply to everyone.
Question 4: Write a plan that matches the data you included in the retirement calculator and answers the questions below. (20 points)
A. At what age will you retire?
B. Estimate how many years you will live off of your retirement account (or how long you plan on living). Basing your estimate on family history or personal habits is a good start or you can find an online calculator. You do not want a situation where you run out of money when you don’t have a job.
C. How much money will you need each year in retirement?
D. When will you begin saving and how much will you save each month? There is no need to start saving while in college, remember this is a plan.
E. What is the total amount you will have in your retirement account on your last day of work? The online calculator will help you estimate this amount.
F. What type of assets (ex: stocks, bonds, mutual funds) will be found in your retirement portfolio and why did you select them?
G. What did you learn in Macroeconomics that will help you in the future?
