“One of the biggest mistakes people make in retirement planning is waiting too long to begin."...

“One of the biggest mistakes people make in retirement planning is waiting too long to begin." What’s the hurry? Why not wait until you’re in your mid 40’s to plan for your retirement? please be detailed.

Expert Solution

One of the biggest mistake people will be making in retirement planning is starting too late or waiting too long to begin so that they have very less time in order to compound their savings and they will be having a lesser Corpus when they will be retiring so it is best to start early when you are trying to save for retirement.

when there are more time periods it will mean that there is a higher probability of earning higher corpus because it will be offering me with higher rate of compounding and it will also be offering me with higher risk bearing capability due to longest time on hands.

when you are starting a plan in your 40, it will mean that you will have a very lesser amount of time to compound your money and it will be meaning that you will have very low probability of making a higher rate of return once you retire, so it is better to start early and save more and apply higher rate of compounding in order to help yourself with a higher amount of Corpus at retirement.

jeff jeffy answered 2 years ago

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