6. Assume you want to retire early at age 53. You plan to save using one of the following two strategies: (1) save $3,000 a year in an IRA beginning when you are 28 and ending when you are 53 (25 years) or (2) wait until you are 38 to start saving and then save $5,000 per year for the next 15 years. Assume you will earn the historic stock market average of 12% per vear. Requirement 1. How much out-of-pocket cash will you invest under the two options? Calculate how much out-of-pocket cash you will invest under the two options. Option 1: Option 2: Requirement 2. How much savings will you have accumulated at age 53 under the two options? Calculate the total amount of savings that you will have accumulated at age 53 under the two options. (Round the savings to the nearest dollar amount.) Option 1: Option 2: (2) later (1) O earlier savings later savings Requirement 3. Explain the results. sooner The strategy involving (1). grows substantially larger over time. This is due to the fact that the savings are invested (2) so time does the work. Requirement 4. If you were to let the savings continue to grow for nine more years (with no further out-of-pocket investments), under each scenario, what will the investment be worth when you are age 62? Calculate the total amount of savings at age 62, with no further out-of-pocket investments, under each scenario. (Round the savings to the nearest dollar amount.) Option 1: Option 2