information for Sampsons Case 19 Excel
Dave’s employer offers a 401(k) plan, but Dave has not participated in it up to this point. Now he wants to seriously consider contributing. His employer will allow him to invest about $7,000 of his salary per year and match his contribution up to $3,000, for a total contribution of $10,000 per year.
The retirement funds will be invested in one or more mutual funds. Dave’s best guess is that the retirement fund investments will earn a return of 7% per year.
information for Sampsons Case 20 Excel
Dave and Sharon Sampson want to make sure that their family is properly cared for in the event of their death. They recently purchased term life insurance and want to make sure that the funds are allocated to best serve their children in the long run. Specifically, they have set the following goals: First, they want to make sure that a portion of the insurance proceeds is set aside for the children’s education. Second, they want to make sure that the insurance proceeds are distributed evenly over several years, so that the children do not spend the money too quickly.