Managing a 401 K Fund Report
Table of Contents
Case Background 2
Key Case Findings 2
Recommendations 4
References 8
Exhibits 10
Case Background
This case is regarding a new employee, Emery Matthews, at a company, Hines, who is being offered an opportunity to invest earnings into a 401(k) retirement plan. Being a new employee, completing graduate school with only two years of work experience before this job, retirement was not the main focus on Emery’s mind. He was aware of the tax advantages in starting a 401(k) plan, how after a year work employment, Hines would match the contributions annually up to $2,000, but because of the ten (10) options Hines provided employees, he was unsure of which to select. These plans range from low to high risk, and quick to long-term gains. After reviewing all the options, it can be stated that the selection of the best option for Emery will come forth.
Key Case Findings: Emery Matthews is a new employee at Hines fresh out of college with a MBA/JD from Harvard University with only two years of work experience
It can be assumed that Emery has a substantial amount of student loans considering the cost of a two-year JD program from Harvard costs about $164,000 (Harvard Law School. 2015)
It can be assumed that Emery will be living within traveling distance to Hines central location of New York City. The following are statistical averages for New York City. (Numbeo. 2015)
Average monthly rent for an apartment (1 bedroom) outside of downtown is $1,739.71
Basic utilities (Electricity, Heating, Water, Garbage) for 85m2 Apartment is $115.23
Internet (6 Mbps, Unlimited Data, Cable/ADSL) monthly is $52.07
Monthly Subway Pass (Regular Price) is $112.00
Employees at Hines could contribute between one and fifteen percent of their salary to their 401(K) plans
After completion of the employee’s first year of employment, Hines will match up to $2,000
T. Rowe Price is the investment
Case Background 2
Key Case Findings 2
Recommendations 4
References 8
Exhibits 10
Case Background
This case is regarding a new employee, Emery Matthews, at a company, Hines, who is being offered an opportunity to invest earnings into a 401(k) retirement plan. Being a new employee, completing graduate school with only two years of work experience before this job, retirement was not the main focus on Emery’s mind. He was aware of the tax advantages in starting a 401(k) plan, how after a year work employment, Hines would match the contributions annually up to $2,000, but because of the ten (10) options Hines provided employees, he was unsure of which to select. These plans range from low to high risk, and quick to long-term gains. After reviewing all the options, it can be stated that the selection of the best option for Emery will come forth.
Key Case Findings: Emery Matthews is a new employee at Hines fresh out of college with a MBA/JD from Harvard University with only two years of work experience
It can be assumed that Emery has a substantial amount of student loans considering the cost of a two-year JD program from Harvard costs about $164,000 (Harvard Law School. 2015)
It can be assumed that Emery will be living within traveling distance to Hines central location of New York City. The following are statistical averages for New York City. (Numbeo. 2015)
Average monthly rent for an apartment (1 bedroom) outside of downtown is $1,739.71
Basic utilities (Electricity, Heating, Water, Garbage) for 85m2 Apartment is $115.23
Internet (6 Mbps, Unlimited Data, Cable/ADSL) monthly is $52.07
Monthly Subway Pass (Regular Price) is $112.00
Employees at Hines could contribute between one and fifteen percent of their salary to their 401(K) plans
After completion of the employee’s first year of employment, Hines will match up to $2,000
T. Rowe Price is the investment