One potential benefit from starting to invest early for retirement is that the investor can expect greater benefits from the compounding of interest.

Question

Quizplus · Accepted Answer

Compounding interest means that not only does the original investment earn interest, but the interest itself also earns interest over time. Starting to invest early allows for more time for compounding to work its magic, resulting in greater benefits in the long run.

One Potential Benefit from Starting to Invest Early for Retirement