View the step-by-step solution to:

Retirement Strategies Most of you is investing your money today for one basic reason: to be able to retire one day and not have to work past a...

This question was created from document_6 https://www.coursehero.com/file/22248968/document-6/

22248968-303707.jpeg

I'm not seeing the answers for this document

22248968-303707.jpeg

Retirement Strategies
Most of you is investing your money today for one basic reason : to be able to retire one day and not
have to work past a certain age . But to be able to retire , especially given today's economy , You need to
make wide investment choices along the way .
There are three fundamental truths for investing for retirement . Ist you need to have one or more goals
for retirement . Second , successful investment means taking risk . Thirdly , you must diversify .
Retirement Goals
Every investor should have a goal - such as building a new house , sending their children to college ,
taking a long vacation , retiring early , or to start a new business , Goals for retirement generally need to be
long-term goals . Fortunately , time is usually on your side . Time helps you reach your goals , because of
compound interest . This means that you earn interest on the interest already earned . For example , if You
invest $ 10,000 at Ex , the original investment of $ 10,000 grows to $ 14, 700 after five years , $ 31, 700 after
15 years , and $ 60, 000 after 25 years . This is true even if you never add another Dollar to your original
investment !
Taking Risk
Investing for the long term may be risky . Markets sometimes go up , but sometimes they go down as well .
One fact on your side is this ; the more time you have until retirement , the more risk you can afford to
make . The benefits of compound interest outweigh the risk's within the marketplace . While no investor
want to lose money , they still have time to make up for any potential losses that might occur in the
short- term .

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question