Question

When evaluating a savings plan, name your top three of the important considerations outlined in the text. Briefly explain why each of these are important when you are considering your savings options.

Answer 1

Hi, I do not see any kind of text here.

But, I am giving the answer from the problem mentioned.

The saving plan is essential for every individual. Every individual wants to save so that his or her financial poston will be strong. The consideration can be;

1. Amount of saving - The amount of saving is the primary factor in the plan. How much have to save depends upon several factors such as income level, expenditure, etc. If the saving is high there will be enough funds at the end of the period.

2. Investment of savings - Only saving will not help but those needs to be invested in the risk-free securities. The money we saved should earn money and in order to do that it should be invested.

3. Time period - The period in whole saving is important as it should be in association with financial objective. For example, if we want to butya house in 10 years then the saving period should be related with that time period to help acheive the objectives.