Team 4401KProfit SharingAssumptionsScenarioLifestyle of LivingComparisonSensitivity AnalysisSensitivity AnalysisConclusionResourcesTeam 4Team 4Personal Retirement Personal Retirement 401K vs Profit Sharing401K vs Profit SharingBryant Borbon - TechieBryant Borbon - TechieKatherine Kelley - OrganizerKatherine Kelley - OrganizerVictor Nogin - SummarizerVictor Nogin - SummarizerTrent Thompson - SummarizerTrent Thompson - Summarizer401K401KCompany MatchingCompany MatchingTaxes are Deferred Taxes are Deferred Ability to Roll-OverAbility to Roll-OverEasy to ManageEasy to ManageControl of Control of InvestmentsInvestmentsProtected by Pension Protected by Pension LawsLawsProfit Sharing Know Amount you ReceiveEmployees Focus on Success Supplemental to SalaryProfits could be Volatile Focus on Profit could Compromise QualityHard to Manage Finances with Profit SwingsAssumptionsSame Starting Salary of $62,000ROR on Investment – 8.0%Number of Years Worked – 35 YearsAnnual Raise of 4.0%Both Plans will be Tax Deferred Company Matches 5% of 401KConstant Profit PercentageScenarioScenario25 year old Cal Poly Graduate25 year old Cal Poly GraduateTwo similar job offers with equal benefitsTwo similar job offers with equal benefitsBorley Inc. – 401k PlanBorley Inc. – 401k PlanNogson Co. – Profit SharingNogson Co. – Profit SharingWhich offer is more beneficial?Which offer is more beneficial?Lifestyle of LivingAmount needed at retirement for various lifestylesComparisonSensitivity AnalysisSensitivity AnalysisConclusionBorley’s 401K is a better retirement optionRate of Return prevails in Sensitivity Analysis % Contributed by P.S. does not yield as muchResourcesResourcesWebsitesWebsites http://www.nfib.com/object/3518245.htmlhttp://www.nfib.com/object/3518245.html http://www.irs.gov/retirement/article/0,,id=http://www.irs.gov/retirement/article/0,,id= 108948,00.html108948,00.htmlEngineering Economic AnalysisEngineering Economic Analysis, Donald G. , Donald G. Newnan, Oxford University Press, USA; 10th Newnan, Oxford University Press, USA; 10th edition (2009)edition (2009) Personal ExperiencePersonal ExperienceHomework and Lecture NotesHomework and Lecture
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