The Rule of 72
By Christopher L. Hudson, Financial Advisor, CIMA
The Rule of 72 shows the number of years it takes to double your money at a given, annualized, rate of return.
Years to Double Your Money = 72 / Rate of Return
Annualized Rate |
# of Years to Double Your Money |
| 2% | 36 years |
| 4% (approximate CD rate) | 18 years |
| 6% | 12 years |
| 10% | 7.2 years |
| 12% | 6 years |
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Any opinions are those of Christopher Hudson and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
This is an illustration and is not intended to reflect the actual performance of any particular security. Future performance cannot be guaranteed and investment yields will fluctuate with market conditions. Holding investments for the long term does not insure a profitable outcome.
