274: Compound Interest & The Rule of 72

274: Compound Interest & The Rule of 72

The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, you can know how many years it will take for your investment to double. The rule of 72 with compound interest was great back when interest rates were higher. If you gave 100K to Bank of America today, it would take 72 years for your money to double. In Japan, it costs you money to keep money in the bank. You need a new vehicle that allows you to:

1. Protect your capital
2. Give you at least a 6-10% return
3. Gives you the possibility of appreciation in the future
4. Gives you tax advantages

The bank is for people who don't trust in themselves. You need to be doubling your money quicker than what the banks will give you. The house is about protecting money, but it doesn't give a return or a tax advantage.

I'm seeing doubles in 3 years, 4 years, and 5 years investing in multi-family apartment buildings. This is the new compound interest. Don't wait until you are 90 years old for your money to double!

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The Entire Planet has 1930 Depression Once Interest Rates Hit This Level

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The Cardone Zone Episode 311  "That will never work" Couldn't think of a better title for this episode than to quote Marc Randoph's book title: "That will never work", because that is the essence of t...

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What does it take to become a household name, stay at the top of your game, and negotiate your way through decades of success? In this star-powered episode of The Cardone Zone, Grant Cardone is joined...

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Grant Cardone has a chat with 35,000 of his closest friends

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Welcome to the 10X Growth Conference at Marlins Stadium in Miami, the legendary event that ignited ambition, transformed lives, and brought together entrepreneurs, sales professionals, business owners...

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