6. If you want a financially comfortable retirement, then start saving as soon as possible in order to receive maximum benefit from compound interest.

6. If you want a financially comfortable retirement, then start saving as soon as possible in order to receive maximum benefit from compound interest. Interest is the rate of return earned on an investment. Compound interest, which is interest earned on previously earned interest, is most effective when you have a long time horizon. Regular savings, even when invested at modest rates of return, can result in large sums of money in the future. This concept is explained more fully in Chapter 5 (Personal Investments).