Years to Double = 72 / Interest Rate
For example, if an investor currently has their nest egg invested in certificates of deposit (CDs) yielding 2%, it will take that individual 36 years (72 / 2) to double their retirement account. By comparison, if the person invested in a diversified portfolio earning 8% over time, their funds would double in 9 years (72 / 8)." But don't forget that inflation also eats away at purchasing power; you can estimate the impact of inflation with the same rule. Thanks to the Networth Advisory Group for this info. Read more examples at: http://networthadvice.com/2012/06/28/the-rule-of-72/
Rule of 72
Reviewed by Pisstol Aer
Published :
Rating : 4.5
Published :
Rating : 4.5