25
QuizMultiple Choice

Retirement Planning — Test

Question 25 • Advanced Financial Algebra

Which recommendation would best help people ages 18–29 get their retirement savings on track?

Answer
A
Focus primarily on paying off student loans.
B
Delay retirement planning until income stabilizes.
C
Increase spending on lifestyle needs.
D
Start investing early in low-cost index funds.

Explanation

Starting to invest early gives savings more time to grow through compound returns. Low-cost index funds can provide broad diversification while keeping fees down, which helps preserve more of the investment’s growth. Delaying planning or focusing only on debt can mean missing valuable years of potential investment growth.

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