Ask Question
BusinessBusiness
27 January, 16:21

You have set a goal of saving $4,000 every year, beginning the year you finish school and start working and lasting until you retire. You are considering these three investment instruments: an IRA, stocks, and certificates of deposit. Which will likely produce the best long-term returns? Explain your answer.

+4
Answers (1)
  1. 27 January, 17:16
    0
    IRA (Individual retirement account)

    Explanation:

    An IRA is a type of account set up purposely to encourage savings towards retirement, and as a result some benefits are inculcated into it.

    One key advantage of IRA over the other options of savings is that it has a higher rate compared to the certificate of deposit, meanwhile the effect of the macro economic factors on the stocks could lead to its instability. This interest can even be be compounded over the savings period, yielding a cumulatively higher interest.

    Another benefit of IRA is that the interest earned until retirement are exempted from taxes.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You have set a goal of saving $4,000 every year, beginning the year you finish school and start working and lasting until you retire. You ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Describe how form utility is not explicitly related to marketing
Answers (1)
Based on the following passage, why might a demolition team wish to measure the success of a demolition?
Answers (1)
The successful conveyance of real estate depends on a well-formed contract for sale since the contract dictates the rights and type of deed involved, as well as choreographs the entire transaction.
Answers (1)
Amanda wants to start a business to sell handmade jewelry. She is very competent at making the jewelry and teaching others to make it, and she has saved a reasonable amount of money to start the business.
Answers (2)
The forecast for the third quarter is 2,000 units; the seasonal index for the quarter is 1.18. What are the seasonally adjusted sales for the quarter?
Answers (1)
New Questions in Business
According to the presentation, the first step in making a major purchase is: A. choosing a salesperson B. determining the features C. you want to do your research D. finding out what the taxes will be
Answers (1)
Bank Corp.'s voting stock is owned by the following individuals: Farber, 25%; Farber's mother, 15%; Farber's father, 40%; and Grosset, an unrelated person, 20%. Farber's sister sold equipment to Bank at a loss.
Answers (1)
A financial analyst is presented with information on the past records of 60 start-up companies and told that in fact only 3 of them have managed to become highly successful. He selected 3 companies from this group as the candidates for success.
Answers (1)
Sal, a production manager, knows that some of his employees are upset with a new corporate policy that eliminates a tuition reimbursement program. As a result, some of these employees are participating in soldiering.
Answers (1)
An investment project provides cash inflows of $1,275 per year for eight years. a. What is the project payback period if the initial cost is $4,100? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) b.
Answers (1)
Home » Business » You have set a goal of saving $4,000 every year, beginning the year you finish school and start working and lasting until you retire. You are considering these three investment instruments: an IRA, stocks, and certificates of deposit.
Sign Up Forgot Password?