ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When you get married
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When you get your first job
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When you reach age 50
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When you reach age 65
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Detailed explanation-1: -The answer is simple: as soon as you can. Ideally, you’d start saving in your 20s, when you first leave school and begin earning paychecks. That’s because the sooner you begin saving, the more time your money has to grow.
Detailed explanation-2: -By starting early with saving and investing in a retirement account, you’ll likely become self-sufficient and have more control over your life. You don’t want to depend on Social Security, Medicare, Medicaid, or even relatives to take care of you in retirement.
Detailed explanation-3: -An IRA is a good first choice An IRA is an Individual Retirement Account that you open in your own name. Like a 401(k), savings grow tax-deferred, which means you don’t pay income taxes on the earnings as long as the money is in the account.
Detailed explanation-4: -Compound interest is likely the most significant benefit of investing early in retirement. Though there’s no guaranteed set rate of return, when you start saving for retirement earlier, you’ll end up with more money with a smaller capital investment than if you wait until later in your career.