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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%.
LARGE COMPANY STOCKS Risk level
BONDS Expected return
Value at retirement
INTERNATIONAL STOCKS Risk level
SMALL-COMPANY STOCKS Expected return
LARGE-COMPANY STOCKS Value at retirement
23% $3.5 million