I wrote last week about How to Double your Money Every 7 Years, here’s more evidence of how and why.
Golden Rule of 72
There is the rule called the Golden Rule of 72 I want to introduce to you. It explains how investing money can and will double in value from the original amount. This rule is directly related to the rate of return the investment yields. In the previous article, since we know the standard stock market rate of return of 11%, we take the golden rule of 72 and divide it by 11 and that yields an answer of 6.5455. Basically, this tells us that the original money investment will double every 6.5 years according to the rule. Basically, take your return and divide it by 11 and you will see how long it will take for your investment to double. Continue reading