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Assume you want to retire early at age 53. You plan to save using one of the following two strategies: (1) save $5,100 a year
Assume you want to retire early at age 53. You plan to save using one of the following two strategies: (1) save $5,100 a year in an IRA beginning when you are 28 and ending when you are 53 (25 years) or (2) wait until you are 43to start saving and then save $12,750 per year for the next 10 years. Assume you will earn the historic stock market average of 14% per year.
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.
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