• Reach your full potential

    Reach your full potential

  • At the heart of your financial strategies

    At the heart of your financial strategies

  • Secure your financial situation

    Secure your financial situation

  • Reach your financial heights

    Reach your financial heights

  • Your financial

    Your financial "coach"

  • A safekeeper for your assets

    A safekeeper for your assets

The 72 rule

Using this very simple rule, we are able to estimate the amount of time required to "double" your investment savings. The formula is simply to divide 72  by the yield expected on your investments. As an example, if we expect an average return of 10%, we can then estimate that our investment will double every 7.2 years (72/10). Following this small table, we are able to use this rule for various yields:

72 RULE FOR A $50 000 AMOUNT

Will generate an amount of :

Expected return

12%

10%

8%

6%

4%

2%

$100 000

6 years

7.2 years

9 years

12 years

18 years

36 years

$200 000

12 years

14.4 years

18 years

24 years

36 years

72 years

$400 000

18 years

21.6 years

27 years

36 years

54 years

108 years

The above table shows the importance of maximizing the expected return on your investments. It is therefore paramount that, always in keeping with your investor’s profile, one works with professional investment managers who will generally produce higher returns over time, while stabilizing assets during turmoil. This can have a significant impact on your retirement.

   

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