Rule of 72

Once the $100,000 is accumulated in the previous article on Saving $100,000 you need to understand the concept of the ‘Rule of 72’. ‘The Rule of 72’ says that what ever is your rate of return, divide it into 72 and that tells you the number of years it takes to double your money.

So for example $100,000 at 12% takes 6 years to double. If you have 36 years to retirement that $100,000 could double 6 times and would become $6.4 million. At 6% the same $100,000 would double just 3 times and become $800,000.

Another way to look at this is for ever $1000 a month you want at retirement you need $200,000 earning 6% in your savings vehicle

If you are already near retirement as I am and you do not have any money saved like me there are other options and all is not lost. The answer lies in a vehicle that produces the necessary monthly income you need to retire comfortably. Click Here! If you are not up for the journey then all is lost.