Your 21-year old niece, who is graduating from college next month, asked for your advice - should she:

Invest $5,000 per year into her retirement fund(9 payments) from age 22 - 30?

Or wait until she turns 31 and invest $5,000 every year through age 65 (35 payments)?

Directions:

1. Use the link below to select a stock fund's 10 year return as an investment return (as you did for the TVM return thoughts on risk and return). Pick the riskier/higher return fund and calculate her investment balance at the end of age 65 for BOTH scenarios, assuming annual compounding.
2. Vanguard Mutual Funds
3. Now, take that money and spend it down to 0, assuming she'll live 30 more years to age 95. How much money can she spend per month (hint: monthly compounding). Assume she puts her money into a fund earning 5%.