Financial Literacy Month: Fact: Did You Know?

The Rule of 72 is a simple way to estimate how long it will take for your investment to double. Just divide 72 by your annual return rate.

Fact!

It’s simple math—but the lesson is big: the sooner you start, the more time compounding has to work for you.

For example, with a 6% return, your money doubles every 12 years (e.g., 72 ÷ 6 = 12 years for a 6% return).
If you invest $20,000 at age 25, it could grow to roughly $160,000 by age 61 (doubling 3 times). But if you wait until age 37, that same $20,000 will grow to around $80,000 by 61.

You don’t need to time the market. You need time in the market.

LeTort Trust does not provide tax or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.