biz buds et al-Hi Brandi! There are NO stupid questions. The Rule of 72 is very easy to understand. Every investor uses it to make a quick calculation in their heads. The Rule of 72 basically tells you how long it will take to double your money. All you have to do is divide 72 by the rate of return you are earning and that is how long it will take to double your money. That is it! If you have a mutual fund that is earning you 8% and you want to know how long till you double your money, apply The Rule of 72! 72 divided by 8 equals 9. It will take you 9 years to double your money at an 8% return. This assumes that you earn 8% each of those 9 years and therein lies the rub....
Posted on: Wed, 05 Mar 2014 06:10:26 +0000
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