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Table: Midcareer


Cover Story

TABLE: Midcareer

Age Retirement Age Current Income

45 66 $100,000

Employee makes a 6% contribution and has $40,000 in the 401(k), with money

split 50-50 between stocks and bonds. It's a moderate-risk strategy with an

expected 9.7% total return.

SUGGESTED ALLOCATION

INTERNATIONAL STOCKS Risk level

20% High

SMALL-COMPANY STOCKS Expected return

20% 12%

LARGE-COMPANY STOCKS Value at retirement

23% $1.2 million

BONDS

37%

If employee boosts his contribution to 8% of income, the final value grows to

$1.5 million.


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