Final answer:
Bobby will have to wait 3.5 years to withdraw money from his IRA without penalty, as the eligible age for penalty-free withdrawal is 59.5 years old.
Step-by-step explanation:
The question pertains to when an individual can withdraw funds from an Individual Retirement Account (IRA). Specifically, it asks how many years Bobby will have to wait to withdraw money without penalty, given that he has just turned 56 years old. The correct answer is that he will have to wait 3.5 years, as the age at which one can withdraw funds from an IRA without penalty is 59.5 years old.
Through this example, we can understand that financial planning for retirement is a process of saving and investing over an individual's working life in anticipation of future consumption after retirement. By understanding concepts such as compound interest and analyzing personal savings goals, someone can effectively prepare for their non-working years.