2.07: retirement (choose 3 of 11)\nwhich person is more likely to have more wealth upon retirement?\n○ a…

2.07: retirement (choose 3 of 11)\nwhich person is more likely to have more wealth upon retirement?\n○ a person who has invested 5 percent of their income into government bonds beginning at age 22\n○ a professional who bought some of their company’s stock beginning at age 30\n○ a person who has invested 5 percent of their income into an equity mutual fund beginning at age 22\n○ a person who has invested 5 percent of their income into a stock portfolio beginning at age 50

2.07: retirement (choose 3 of 11)\nwhich person is more likely to have more wealth upon retirement?\n○ a person who has invested 5 percent of their income into government bonds beginning at age 22\n○ a professional who bought some of their company’s stock beginning at age 30\n○ a person who has invested 5 percent of their income into an equity mutual fund beginning at age 22\n○ a person who has invested 5 percent of their income into a stock portfolio beginning at age 50

Answer

Brief Explanations:

The earlier one starts investing and the more diversified and potentially higher - returning the investment vehicle, the more wealth is likely to be accumulated by retirement. Investing 5 percent of income into an equity mutual fund starting at age 22 benefits from long - term compounding and equities generally have higher returns over the long run compared to government bonds. Starting at age 22 also gives more time for compounding compared to starting at age 30 or 50. Buying only company stock may be risky if the company underperforms.

Answer:

a person who has invested 5 percent of their income into an equity mutual fund beginning at age 22