High Balance at Age 65: Susan vs Bill

What factors could have contributed to Susan having a higher balance at age 65 compared to Bill?

1. Susan invested $5000 and Bill invested $1500. Why did Susan have a higher balance at the age of 65?

Answer:

There could be a number of reasons why Susan had a higher balance at the age of 65 compared to Bill:

1. Investment Amount: One possible reason is that Susan initially invested a larger amount of money compared to Bill. This initial investment could have grown over time through compounding.

2. Investment Strategy: Susan may have employed a more aggressive investment strategy, leading to higher returns on her investments. On the other hand, Bill may have opted for a more conservative approach, resulting in lower returns.

3. Additional Contributions: Susan might have continued to contribute additional funds to her investment over the years, increasing the overall balance. Bill, on the other hand, may not have made additional contributions.

4. Income Disparities: Susan may have had a higher income than Bill, allowing her to invest more money or make larger contributions to her investment account.

5. Investment Performance: The investment vehicles chosen by Susan and Bill could have performed differently over time. If Susan's investments had higher returns or lower fees, it could have contributed to her higher balance.