Not sure why, but people seem to be afraid of stocks. From 1926-2000, the DJIA averaged a 10.7% annualized return. What does this mean? There is a formula referred to as The Rule of 72. Simply put, you divide the interest rate into the number 72 and it tells you how many years it would take your investment to double. There is even a calculator to help you. The RULE OF 72 CALCULATOR At 10.7%, it would take 6.82 years to double your money. That means that if you invested $1,000.00 in the DJIA at the age of 25 that $1,000.00 becomes $32,000.00 when you turned 59. Imagine investing more than that and doing it regularly, how much money you might have when you get ready to retire. |