Generate detailed budget using the assumption listed below:

-- Determine the amount you can save and invest

-- Create two investment portfolios

1. 401 K
2. After tax savings

Establish long term return objective levle of risk you wish to accept

design asset. allocation and determine composition of each portfolio

Based on allocation, project forward returns in dollars for the next five years to each portfolio.

Assume your yearly savings are put to work day 1 and add yearly savings to your portfolio on the first day of susequent years.

Situation: 25 year old male scheduled to graduate from college in 3 years with no student loan. Hopes to earn $48,000 a year as graphic designer. wants to contribute $500 a month to 401 K. Monthly expenses are $2,085.