“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

What is the biggest mistake that people make when selecting a target market?

What is the biggest mistake that people make when selecting a target market? Explain why it’s important to collect competitive intelligence, and describe some of the techniques that are used to collect it.

Mr. and Mrs. Smith are planning for retirement which they hope to begin five years from...

Mr. and Mrs. Smith are planning for retirement which they hope to begin five years from today. They expect that retirement will last for 25 years. During each of the years in retirement the Smith's want to withdraw $120,000 annually from their retirement investment portfolio. When the Smith’s retire they will naturally become more cautious and the plan is to move the portfolio investments to less volatile investments with an average annual compounded expected rate of return of 4%. Prior...

Problem 2. Mr. and Mrs. Smith are planning for retirement which they hope to begin five...

Problem 2. Mr. and Mrs. Smith are planning for retirement which they hope to begin five years from today. They expect that retirement will last for 25 years. During each of the years in retirement the Smith's want to withdraw $90,000 annually from their retirement investment portfolio. When the Smith’s retire they will naturally become more cautious and the plan is to move the portfolio investments to less volatile investments with an average annual compounded expected rate of return of...

List the six most frequent mistakes that people make in applying utilitarianism, giving an example of...

List the six most frequent mistakes that people make in applying utilitarianism, giving an example of each.

Macon would like to begin planning for retirement. He has as of his 60th birthday collected...

Macon would like to begin planning for retirement. He has as of his 60th birthday collected $150,000 which he plans to deposit in a bank account earning 4.5% per year compounded yearly. Macon is also willing to begin saving an amount on his 61st birthday, and increase that amount by 3.5% every year. He would like to avail $45,000 on his 70th birthday and keep getting an amount greater than that by 6% every year till his 75th birthday. How...

6. One morning while waiting for class to begin, you are reading a newspaper article about...

6. One morning while waiting for class to begin, you are reading a newspaper article about airplane safety. This article emphasizes the role of metal fatigue in recent accidents. Metal fatigue results from the flexing of airframe parts in response to the forces on the plane especially during take off and landings. As an example, the reporter uses a plane with a take off weight of 200,000 lbs and take off speed of 200 mph which climbs at an angle...

You begin making contributions to a new retirement account on your thirtieth birthday. You make a...

You begin making contributions to a new retirement account on your thirtieth birthday. You make a contribution of $4000 at the beginning of each year through your sixty-fourth birthday. Starting at age sixty-five and continuing through your eightieth birthday, you made a level withdrawal on your birthday. Find the amount of these withdrawals if they completely exhaust the balance in your account and the annual effective rate is 6% until you are sixty-five and 5% thereafter.

What are 5 reasons that psychologists tend to make mistakes when making predictions about complex people?...

What are 5 reasons that psychologists tend to make mistakes when making predictions about complex people? In your analysis, name the mistake or bias, define it in your own words and then provide an example to show how a psychologist might accidentally think in a biased manner and make an inaccurate judgment. (at least 1 page)

You are planning to make monthly deposits of $120 into a retirement account that pays 9...

You are planning to make monthly deposits of $120 into a retirement account that pays 9 percent annual interest (APR), compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 19 years? rev: 09_17_2012 Multiple Choice $71,900.73 $75,495.77 $66,266.58 $68,305.69 $862,808.76

You are planning to make monthly deposits of $170 into a retirement account that pays 8...

You are planning to make monthly deposits of $170 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 21 years?

Question