TEMPLE UNIVERSITY COLLEGE OF ENGINEERING ECE 0822INVE$TING FOR THE FUTUREMR. LAVIOLA COMPUTER EXERCISE 3 1.Which investor had the highest balance when they turned 65 in this example? Chris had the highest balance when they turned 65. At the age of 65, Chris's retirement account balance was around $782,454.93, which was greater than Susan and Bill's amounts. 2.How are the actions of the three investors similar? How are they different? Every year, Susan, Bill, and Chris each save $5,000 for retirement. However, because everyone begins and save at various times, they end up with different amounts of money for retirement. 3.Susan invested $50,000 and Bill invested $150,000. Why did Susan have a higher balance at the age of 65? Susan had a larger balance at the age of 65 because she began saving at the age of 25 and continued for ten years, giving her investments 40 years to increase. 4.What important piece of information is missing from this graph? An important piece of information that is missing from the graph is what they invested in 5.Using the data above, summarize an argument for why you should start investing when you are young. Investing money when you're young is a great decision because it allows your money to grow for a longer period. In the previous example, Susan, who began investing early, ended up with more money at age 65 than Bill, despite putting in less money each year. This shows that starting to invest early can help you save significantly more for retirement. 6.What percentage of millennials have $100,000 or more invested for retirement? 3.5$ 7.How does the fraction of millennials with at least $100,000 in retirement compared to the portion of millennials who have no retirement savings? They have less things save 8.Summarize how the amount invested for retirement compares across the three age groups. The amount invested in retirement throughout the groups slowly increase. 9.Explain why the percentage of people with $300,000 or more increases so substantially across the age groups.

TEMPLE UNIVERSITY COLLEGE OF ENGINEERING ECE 0822INVE$TING FOR THE FUTUREMR. LAVIOLA COMPUTER EXERCISE 3 It is because over time from the boomers- millennials, the price of things have increase and change to therefore the $300k would be higher for the boomers than the other group 10.72% of millennials have between $0 and $9,999 invested for their retirement so far. Why is this a potential problem? It is a problem because significant portion of this generation is likely to face financial insecurity and a lower standard of living in their retirement years. 11.If you begin investing at age 25 instead of age 20, how much more do you need to invest month to have $1M at retirement? You need to save 140 more per month. 12.Why might some 20-year-olds have difficulty investing $360 per month for retirement? They may be in college and have no income, they may work in a low-paying job, they may work part-time. 13.If you begin investing at age 45 instead of age 40, how much more do you need to invest per month to have $1M at retirement? Why is this amount so much greater than the difference between 20 and 25? You need to save at least $718 because you are older and close to retirement, so you need to spend more. 14.If you wait until you're 45 to begin investing, how much money will you need to invest, just for retirement, per year? Why might this be difficult? at least $2153, because This might be difficult because of living expenses, you may have kids and that will cost a lot of money. 15.Using the data in graphs II and III, how much will most millennials need to begin investing, per month, to have $1M in retirement? Explain your answer. you need to save 500-$600 to reach 1 million in retirement 16.Now that you've analyzed these three graphs, list at least 4 things you have learned about investing for retirement. 1- The more money you save when you're younger the more you gain by retirement 2-be consistent 3- spend less save more 4- invest your money

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