Charlie is starting to save for his retirement now at age 20.If inflation averages 4% annually until his retirement age and he earns an annual rate of return of 4% on his investments during this period,then he should be able to enjoy a very comfortable retirement when he is retired.

Question

Quizplus · Accepted Answer

While it is advisable for Charlie to start saving for his retirement at a young age, a 4% rate of return on his investments may not be enough to keep up with inflation. This means that the purchasing power of his savings may be eroded over time, leading to a potentially less comfortable retirement. Charlie may need to consider other investment options or increase his rate of savings to ensure a comfortable retirement.

Charlie Is Starting to Save for His Retirement Now at Age