Question
Your friend needs economics advice. They are 25 now want to be able to retire at 65 years old. Help them to develop a retirement
Your friend needs economics advice. They are 25 now want to be able to retire at 65 years old. Help them to develop a retirement plan by completing the following: 1. Determine what their salary at age 65 will need to be to maintain their current salary of $50,000 at 2% inflation per year. Please show your math 2. Describe what diversification is and how it can help toward retirement 3. Describe the relationship between risk and return and how your friend might manage risk as they get older. Be sure to include risk aversion, adverse selection, and moral hazards in your explanation.
Please help me understand this
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