A good gardener knows about how long it takes his prized tomato
to double in size.
Do you know how long it may take for your investments
to double in value?
The rule of 72 is a quick way to figure it out.
By dividing 72 by the annual rate of return,
you can come up with a rough estimate of how many years
it's expected to take for your investment to double in value.
For example, if Jan invests $50,000 in a mutual fund that
has a hypothetical 6% rate of return,
she can expect her investment to be worth $100,000 in roughly
12 years.
The rule of 72 also can help calculate
the effect of inflation.
If Justin has $100,000, a hypothetical inflation rate
of 3% would be projected to reduce his purchasing
power by 50% in 24 years.
The rule of 72 is a shortcut to help
you measure the effect of compound interest
on your investment dollars.
Call today, and let's discuss your outlook
for your investments.