401k vs. Investing in a House

EGR 403

Team 3

Team Members

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

Type of project

Personal Investment Find future worth Fixed Input

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

Personal Investing

Option 1: invest in a 401k Option 2: invest in a secondary house to

rent out

Resources

Base salary for an average 25 year old Engineer

Internet Class resources Current 401k plans