Step 2: Start Saving Early Instead of Later

What is the amount you will have at age 65 if you invest $100 at age 25 with an 8% compound return?

• $3,192

• $2,172

• $1,478

• $1,006

At what age do you need to invest $9,938 to reach $100,000 by age 65 with an 8% compound return?

• Age 35

• Age 40

• Age 45

• Age 50

At what age do you need to invest $46,319 to reach $100,000 by age 65 with an 8% compound return?

• Age 55

• Age 50

• Age 45

• Age 40

How much would you need to invest at age 20 to reach $300,000 by age 65 with an 8% annualized return?

• $5,000

• $9,399

• $15,000

• $20,000

If the annualized return is 12%, how much would you need to start with at age 20 to reach $300,000 by age 65?

• $1,830

• $3,000

• $5,000

• $9,399

What is the key concept illustrated by the example of saving $5,000 annually from age 21 to 65?

• The importance of high-risk investments

• The impact of inflation on savings

• The value of early savings and compound interest

• The necessity of financial advisors

What percentage of the total savings at age 65 came from the first decade of savings when saving the same amount each year?

• 55.4%

• 25%

• 8%

• 50%

How much does the fourth $50,000 (savings in your 50s) grow to?

• $106,428

• $229,769

• $496,050

• $29,333

What is suggested as a mutually beneficial proposal if parents have low-interest financial assets?

• Offer a lower interest rate

• Propose a higher interest rate for a long-term loan

• Request a gift

• Ask for a short-term loan

What is a key factor in deciding to propose a financial arrangement with parents?

• Personal desires

• Parents' financial assets

• Friends' opinions

• Market predictions