What is one primary benefit of investing early?

Investing early is advantageous primarily because it provides more time for compound interest to grow. The concept of compound interest means that not only do you earn returns on your initial investment, but you also earn returns on the interest that accumulates over time. When you start investing in your early years, even small amounts can grow significantly due to the power of compounding.

For instance, if you invest a certain amount at a fixed interest rate, the interest earned in the first year will itself accrue interest in the subsequent years. Over time, this can result in exponential growth of your investment. The earlier you start, the more time your money has to benefit from this compounding effect, making it one of the most effective strategies for building wealth over the long term.

The other answer choices, while they may contain some truth, do not capture the overarching benefit of investing early as accurately as compound interest does. Lower fees, smaller tax liabilities, and guaranteed higher returns do not inherently result from early investment, but rather depend on specific circumstances and investment choices.