“What Is the Rule of 70, and How Do You Use It?”
September 26, 2020
“The rule of 70 is used to determine about how long it will take an investment to double in size while growing at a consistent rate of return. The rule is far from exact, but it can nonetheless help you figure out the approximate future value of an investment or compare the potential value of two investments with different rates of return. You may also see the rule of 70 called the “doubling time” of an investment…
Examples of the Rule of 70 Dividend Annual Growth Rate Investment Doubles in… 70 ÷ 15% = 4.66 years 70 ÷ 7.50% = 9.33 years 70 ÷ 5% = 14 years When Is the Rule of 70 Useful?
The rule of 70 has many applications, though it’s typically used to approximate the doubling time of an investment. These investments could be stocks, bonds or a group of investments within a retirement portfolio…”
https://finance.yahoo.com/news/rule-70-193443752.html
I didn’t know about this. It’s very useful for long term investing. Click the link to read the rest of the article.