Joe decides that he will contribute $5,000 a year to his 401(k) plan when he starts saving for retirement. What is the best action Joe can take to ensure that his money will grow the most before he retires?

Select the best answer from the choices provided.
Choose risky stocks with a high return.
Put the money in an IRA instead.
Invest the funds as early as possible.
Use the money to pay down his mortgage instead.

Question

Joe decides that he will contribute $5,000 a year to his 401(k) plan when he starts saving for retirement. What is the best action Joe can take to ensure that his money will grow the most before he retires?


Select the best answer from the choices provided.
Choose risky stocks with a high return.
Put the money in an IRA instead.
Invest the funds as early as possible.
Use the money to pay down his mortgage instead.

anonymous · Answer

@JoannaBlackwelder

joannablackwelder · Answer

Invest as early as possible to take advantage o compounding interest.