Table: An Early Course Correction

Cover Story

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%