Your 21-year old niece, who is graduating from college next month, asked for your advice – should she:
Invest $5,000 per year into her retirement fund (9 payments) from age 22 – 30?
Or wait until she turns 31 and invest $5,000 every year through age 65 (35 payments)?
- Share your niece’s age 65 balance from part A. for both scenarios with the class. What did you find?
- Share your findings from part B. What did you find?
- Discuss the implications for her goal of becoming financially independent.
- Share any additional advice you have?