Question

HELP ASAP !! Matilda just started her first job. She has some difficulty saving money, but she knows she must do it. Which of the following is the best option to start saving for retirement now?

She can choose a low-interest account.
She can contribute to her employer's matching benefit.
She can enroll in a 529 plan.
She can sign up for a pre-paid plan.

Answer 1

Answer: (B) She can contribute to her employer's matching benefit.

Answer 2

She can contribute to her employer's matching benefit.

Step-by-step explanation:

The best way for Matilda to save is to have the amount she intends to save deducted from her basic salary. By doing this, she will not have direct access to the money, so she cannot spend it. If her employer has a savings matching scheme, then Matilda should join it. Her savings account will grow faster due to her employer's contributions.

A low-interest account will discourage her from saving. The 529 schemes are designed to save money to cater to post-secondary education.