1. Team 7 Personal Investment Michael Dellosa Andrew Nimrod

2. Objectives Scenario Stocks Roth IRA Summary & Assumptions References

3. Scenario You are a 23 year old college graduate that has just started a job paying $55,000 dollars a year and want to invest 10% of your yearly salary in the market,but is not sure on which route to go. So you decide to look at investing your money into stocks or a Roth IRA for a 10 year period in hopes that you will be able to make enough for a nice down payment on a house.

4. Stocks Basics –A stock is a share in the ownership of a company. –Stock represents a claim on the company's assets and earnings. –Investment in stocks has historically had an average return of around 10%-12% –Two types of stock common and preferred www.investopedia.com

5. Stock Analysis

6. Stock Sensitivity

7. Stock Sensitivity Cont.

8. Roth IRA Roth IRA Basics –Can invest up to $4000 a year by using an after tax paycheck –Collect tax free compound interest on growth on whatever you decide to invest in Limitation in this project –First 5 years contributions will not be penalized, but the last 5 years will be penalized 10%

9. Roth IRA Analysis

10. Roth IRA Sensitivity

11. Summary Assumptions Market value always went up Constant salary increase Same employer for the 10 yr. period

12. References 1.www.investopedia.com 2.http://www.fool.com/money/allaboutiras/allaboutiras12. htm 3.http://personal.fidelity.com/products/retirement/getstart /aboutira.shtml.cvsr?banner=12493134&immid=00045 &psite=google&crtype=search&kw=Roth_IRA 4.http://www.dinkytown.net/java/RothIRA.html