The Power of Interest - How Long Will it take My Money to Double?
Have you ever heard of the Rule of 72? How about the Rule of 114? The Rule of 72 is a shortcut to estimate the number of years it takes for an investment to double, while 114 estimates how long it takes to triple. Here's what the rules look like.
Why do you want your investment to double or triple? Does that fit into your overall strategy, or is it just a fun math problem to solve? With saving and growing your money, sometimes hitting singles is a better approach than swinging for a home run.
Rules in Motion
While rules are fun to see, your investment strategy should reflect your goals, time horizon, and risk tolerance.
| Compounded | ||||
|---|---|---|---|---|
| Growth Target | Annually | Monthly | Weekly | Daily |
| Double 2× your investment | 0.0000 years | 0.0000 years | 0.0000 years | 0.0000 years |
| Triple 3× your investment | 0.0000 years | 0.0000 years | 0.0000 years | 0.0000 years |
| 10× Growth 10× your investment | 0.0000 years | 0.0000 years | 0.0000 years | 0.0000 years |
What's Your Time Horizon?
Have A Question About This Topic?
Related Content
The Power of 401k Catch-Ups
See how catch-up contributions after age 50 could significantly boost your retirement balance.
Enjoying Retirement While Staying Aligned with Your Plan
After saving for years, it's time to build confidence to spend. Learn to enjoy retirement without second-guessing purchases.
What You Need to Know about Tax-Loss Harvesting
While tax-loss harvesting won't eliminate your taxes, it may offset what you owe on your taxable investment accounts.