Ella just started her first job and wants to be thoughtful about planning for retirement. She visits a financial planner for the first time. What advice is this planner likely to give Ella?

Question

Quizplus · Accepted Answer

A financial planner is likely to suggest investing in mutual funds that invest in a broad range of companies as they allow for diversification, resulting in less risk. Starting early is also a recommended strategy, as it allows for the potential of compounding interest over a longer time period. Waiting until one is more settled in their work life may cause them to miss out on potential investment opportunities. Buying real estate may not be a suitable investment option for someone who has just started their first job, as it can come with significant upfront costs and may not provide the same level of liquidity as other investments. Stick to one kind of asset is not a recommended strategy as it can increase the risk of loss.

Ella Just Started Her First Job and Wants to Be