Janessa is 29 years old and she is about to start her first full-time job. She is currently single and she is willing to take the appropriate risk she needs to prepare for retirement. Her starting annual salary is $63,000 and she has no retirement savings yet. Her employer will match 100% of her contributions up to the first 4% of her salary to the company's 401 (K) account.
Question:
1. What amount should Janessa should be saving each year?
2. How much of the total annual savings should she be saving in her 401 (K), a Traditional IRA, and a ROTH IRA?
3. Why did you pick each amount?