Forrest Private Wealth

How long it will take to double your money in any investment?

The rule of 72 is a simple way to work out how long it will take an investment to double based on the return you are receiving. Simply divide 72 by the return and you’ll know roughly how long it will take.

If you’re investing in a term deposit returning 1.2%, you’ll double your money in about 60 years. However, if you can achieve a 20% return like Buffet is well known for, you’re doubling your money every 3.6 years!

72/20 = 3.6 years to double your money.

Importantly this shows return makes a big difference when it comes to growing wealth.

Are you maximising your return with your current strategy?