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Personal Investing Options

Group 9. Personal Investing Options. Summarizer : Ryan Rouse Organizer : Juliet Querido Techies : Andrew Jordan Vincent Phan. Scenario. Age: 25 Occupation: Engineer Schooling: Recent Cal Poly Pomona Graduate Marital Status: Single Retirement Age: 65 years old. Income Scenarios.

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Personal Investing Options

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  1. Group 9 Personal Investing Options • Summarizer: Ryan Rouse • Organizer: Juliet Querido • Techies: Andrew Jordan • Vincent Phan

  2. Scenario Age: 25 Occupation: Engineer Schooling: Recent Cal Poly Pomona Graduate Marital Status: Single Retirement Age: 65 years old

  3. Income Scenarios Higher Salary vs. Stock Options • $55,000/Year • 10% into 401K • 5% Annual Salary Increase • $48,000/Year • 10% into 401K • Stock Options • 4% Annual Salary Increase

  4. Results – Scenario 1 • Assumptions: • 10% ROR on 401K Contributions • No Pension Plan • Results: • Income at Age 65 with 5% = $368,000 • Future Value 401K = $4.2 Million !!! • Total Retirement = $4.2 Million

  5. Sensitivity Analysis Scenario 1 • Results: • Future Value 401K at 6% = $1.8 Million • Future Value 401K at 15% = $14.3 Million • Total Retirement = $4.2 Million

  6. Results – Scenario 2 • Assumptions: • 10% ROR on 401k Contributions • 10% ROR on Boeing Stock Options

  7. Results – Scenario 2 (cont.) • Results: • Income at Age 65 with 4% = $222,000 • Future Value 401K at 10% = $3.2 Million !!! • Future Value Stock Options, Worth 15% of Annual Salary, that are Exercised Every Year = $4.9 Million !!! • Total Retirement = Rich Grandchildren • Total Retirement = $8.1 Million

  8. Sensitivity Analysis Scenario 2 • Results: • Future Value 401K at 6% = $1.3 Million • Future Value 401K at 15% = $11.5 Million • Stock Options: • Option Exercised Every Other Year = $4.8 Million • Aerospace Industry Fluctuation on a 20 Year Cycle = $2.1 Million

  9. Summary Scenario 1 401K: $4.2 Million Total: $4.2 Million Scenario 2 401K: $3.2 Million Stock Opts: $4.9 Million Total: $8.1 Million

  10. Resources Interviews CareerJournal.com JobSearchTech.com Techies.com Private Communication with Dr. Rosenkrantz

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