THE RULE OF 72
Transcription
THE RULE OF 72
THE RULE OF 72 You can calculate the number of years it will take to double your money by dividing 72 by the rate of return you expect on your investment. For example: 72 8 (rate of return your investment is earning) 9 (years to double your money) Or, you can determine the rate of return you would need to double your money by dividing 72 by the number of years you have to invest your money. For example: 72 6 (years to double your money) 12 (rate of return required to reach your goal) Some call it retirement, others think of it as the start of something new. When it comes to preparing for life after work, a Sun Life Financial advisor can help you figure it all out. We’ll work with you to build a plan that suits your life’s goals, and evolve that plan as your needs and situation change. This is your time. Together, we’ll help you get the most out of it. Talk to a Sun Life Financial advisor today! www.sunlife.ca | 1 877 SUN-LIFE (1 877 786-5433) We’re dedicated to helping you achieve lifetime financial security. LIFE’S BRIGHTER under the sun DOUBLE YOUR MONEY A brilliant move Let us show you how to make your investments grow. Using a special mathematical formula (Rule of 72) as a guide, this tool shows how long it will take your investment to double, based on the interest rate it is earning. Choose an annual interest rate by rotating the wheel. The window shows you about how long it would take to double your money. These calculations are for illustrative purposes only. They do not necessarily guarantee how many years it would take to double your investment. A1621-E-11-07 © Sun Life Assurance Company of Canada, 2007. 3.5% 4.0% % 4.5 % rs ea 4y 14. 5.5% 2.0% % 5.0 3.0 2.5% ars ye 24 s year 20.6 18 years 16 y ear s 28.8 year s rs 13.1 yea 36 years 8.5 ye ars 9 yea rs 6.5 % 9.6 years 11 .1 y ear s rs yea 3 . 0 1 9.0% 6.0% 12 years ars 8 ye 8.5 % % 7.0 7.5% 8.0%