Investing for Retirement

Benefits of starting early

Compounding Interest
The main benefit of starting early is to take advantage of compounding interest. Compounding interest allows you to earn interest on both the principal you invest and the interest you earn – potentially enabling you to turn a small sum into a substantial one over time.

It’s important to understand how building up your assets now will help you cover your expenses and achieve your goals in retirement.


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When saving for retirement, or another future goal, consider using dollar-cost averaging as a strategy – the process of making regular investments on an ongoing basis, regardless of price; for example, buy 100 shares of a mutual fund each month, quarter or year. You are buying more shares of a security when its share price is low, and fewer shares when its price is high. Over time, it’s likely the average cost per share will be lower than the average market price. For many, this is the most realistic way to save toward retirement because these periodic investments come from paycheck as opposed to having a lump-sum of money to invest all at once.