1. Project Overview Retirement Project Computing Environments--Friday Diane Camaioni April 5, 2002

2. Project Goals Show why it is better to start early. Show three investments that can help earnings grow. Show a plan to save for retirement.

3. Entering the Job Market Starting a career in business as a MIS specialist is a highly desirable field. The starting salary for someone with a Business degree and an MIS specialization averages $30,000. (This is also a very conservative estimate for the South Jersey area.) FOR MORE INFO... http://www.HotJobs.com

4. Salary Increases The expected salary increase is estimated at 4% per year. The 4% is representative of cost of living increases as well as potential bonuses and merit-based salary increases.

5. Saving Early To begin saving…..start with a 5% salary investment. Increase the percentage every 5 years by 1% until 10% is reached. In this way, you can analyze your financial situation and adjust your investments with what is comfortable during that stage of life.

6. Investment Analysis 1 AMERICAN FUNDS AMCAP A Provides long-term growth of capital.

7. Strengths Special emphasis to companies with rapid growth potential in expanding sectors of the U.S. economy. Invests in established growth companies with proven records of steady above- average earnings and a growth rate faster than that of the general market.

8. Weakness 73.51% of asset allocation is in U.S. Stocks.

9. Investment Analysis 2 AMERICAN CENTURY VALUE INV Seeks long-term capital growth first, with income as a secondary objective. FOR MORE INFO... on all investments…….http://www.quicken.com

10. Strengths Invests in medium- to large-sized companies for long-term capital growth with less volatility than more aggressive funds. Moderate risk and moderate return potential with moderate price fluctuation.

11. Weakness 84.02% asset allocation is in U.S. Stocks.

12. Investment Analysis 3 Fidelity Select Health Care Offers broad health-care exposure, with drug firms being its largest position and the drivers of its performance.

13. Strengths Competitive long- term returns with relatively modest volatility. Invests at least 80% of assets in equity securities of companies in the health-care industry that include companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine.

14. Weakness Below average risk but below average return.

15. True Value of Compound Interest Compound Interest shows geometric growth in savings. Save early at modest safe return rates.

16. How Saving Early Helps 40 Years Saving from the first year on a job can amount to significant savings.

17. How Saving Early Helps 30 Years Beginning to save in the 10 th year of a job accumulates to considerable savings.

18. How Saving Early Helps 25 Years Even starting to save in the 15 th year of employment adds up.

19. In Summary…..Save Early, Retire As a Millionaire!