Jacqueline Strauss, a 25-year-old personal loan officer at Second National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,000 per year for her retirement fund and assumes that shell retire at age 65.
How much will she have accumulated when she turns 65 if she invests in equities and earns 8 percent on average?
Jacqueline is urging her friend, Mike Goodman, to start his plan right away, too, because has 35. What would his nest egg amount to if he invested in the same manner as Jacqueline and he, too, retires at age 65? Comment on your findings.