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Rules of 72 & 115
Rules of 72 & 115 Chart
Rate of
Return
1% 2% 3% 4% 5% 6% 7% 8% 8% 10%
Years to
Double

72 36 24 18 14.4 12 10.3 9 8 7.2
Years to
Triple
115 57.5 38.3 28.8 23 19.2 16.4 14.4 12.8 11.5

These two rules are mathematical equations that help estimate future values of money. Here is how they work:

Rule of 72:

Divide 72 by the rate of return on your investment to find how many years it will take to double your investment.

Rule of 115:

Divide 115 by the rate of return on your investment to find how many years it will take to triple your investment.


Holding Property Jointly With Your Adult Kids

Holding property jointly with your kids or someone else may not be a good idea. For example – If someone sues your co-owner son or daughter after a car accident and wins, the plaintiff could “win” half of your property, forcing you to sell it. There can also be tax issues, and other unintended negative consequences of co-ownership. While each situation is different, the general advice would be “don’t do this.”


Life Insurance:

Most people think of life insurance (or other types of insurance) as being a necessary evil – something they have to pay for in case bad things happen. Yet, there are many instances where life insurance can be used to create living benefits (i.e. tax free future income), save income and estate taxes, equalize inheritances, and possibly even replace money you’ve given away. Please let us know if you would like more information on this topic.