What is the Rule of 72? And How Will It Help You Become Wealthy??

what is the rule of 72

“Derek, I’m in trouble. I’m 50 years old and we’ve only got $300,000 saved for retirement. There’s no way we can survive on that! It’ll only last us 10 years before it’s all gone!!”

I’m approached with the terror above quite a bit. People have been saving their entire lives, they hit the magic age of 50 where everyone seems to freak out a bit, and they suddenly look at their retirement account with extreme apprehension.

So how do they typically respond? One of two ways:

They start investing much differently than they had before – in high-risk, high-reward stocks, or They keep their head down, stay the course, and just hope everything works out.

While I don’t love the “stick your head in the sand approach” of #2, it’s actually the option that I’d recommend (that is, if you’re invested appropriately for your age already).

The reason?

The Rule . . . → Read More: What is the Rule of 72? And How Will It Help You Become Wealthy??