Assume you start saving for retirement today.Which one of these is most apt to decrease the amount you have saved by the day you retire?

Question

Quizplus · Accepted Answer

Delaying any additions to your savings by one year means that you will miss out on compounding interest for that year, which could decrease the amount you have saved by the time you retire. A one-year delay in retirement (choice A) would actually allow you to save more money and benefit from an extra year of compounding interest. Increasing your investment's average rate of return (choice B) or selecting an investment that compounds continuously (choice D) would both lead to an increase in the amount you have saved at retirement. Increasing the amount you save each year (choice C) would also lead to a higher overall amount saved at retirement.

Assume You Start Saving for Retirement Today