Why is investing earlier in life preferable?
A) You can avoid any financial risks that the future market conditions might bring..
B) Your compounding effect becomes more powerful.
C) You become richer quicker, as investors younger than 25 enjoy tax benefits.
D) You can retire when you're 40 years old.

Question

Quizplus · Accepted Answer

The earlier you invest, the more time your investments have to grow and benefit from compounding. This means that you can earn money on your initial investment as well as the returns generated by that investment. This can make a huge difference in the long run and can result in significantly higher returns.

Why Is Investing Earlier in Life Preferable