One of the potential benefits of investing early for retirement is that an investor can receive greater benefits from the compounding of interest.

Question

Quizplus · Accepted Answer

Compounding interest means that the gains made from investing are reinvested, which can lead to exponential growth over time. The earlier an investor starts investing, the more time their investments have to compound, potentially resulting in greater long-term returns.

One of the Potential Benefits of Investing Early for Retirement