401k vs. Investing in a House

1
401k vs. Investing in a House

• EGR 403
• Team 3

2
Team Members

• James Coats Summarizer
• Melanie Marin - Techie
• Chris Mui - Organizer

3
Type of project

• Personal Investment
• Find future worth
• Fixed Input

4
Scenario

• A 25-year old engineer plans to invest 5 of his
  salary over the next 40 years
• Assume a 2 promotion every 10 ten years

5
Personal Investing

• Option 1 invest in a 401k
• Option 2 invest in a secondary house to rent out

vs
6
Resources

• Base salary for an average 25 year old Engineer
• Internet
• Class resources
• Current 401k plans