Want to Retire a Millionaire? Learn These 3 Investment Rules
Here's a secret. You don't have to be an expert investor to retire a millionaire. It does help, though, to master a few simple investment rules. Here are three you can pick up fast. They'll keep your expectations and emotions in check, and your portfolio well-rounded.
The Rule of 72 is a quick formula to estimate how long it will take to double your savings. The math is pretty easy. Divide 72 by the average annual growth rate of your retirement portfolio. The answer is your portfolio's doubling time, in years. Most novice investors can use a growth rate of 6% or 7%, which is in line with the stock market's long-term average annual growth after inflation. Divide 72 by six and seven and you'll see that your invested dollars will double roughly every 10 or 12 years.
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Source Fool.com
