2. 02
"WHEN I DO PROJECTIONS FOR PEOPLE I USE THE
RULE OF 72, WHICH SAYS IF YOU CAN MAKE 7% ON
YOUR MONEY IN A SUPER FUND IT WILL DOUBLE
EVERY 10 YEARS. AND THAT'S WHAT WE HAVE TO
THINK ABOUT, TRYING TO GET THEM TO
UNDERSTAND THE BROAD INVESTMENT APPROACH"
What the Rule of 72
Reveals About the
Future of an
Investment
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3. How the Rule of 72
Works
For example, if you take 72 and
divide it by a rate of return of 5%
it will take you about 14.4 years
to double your money.
03
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4. You can also
use the rule
the other way,
to determine
how much you
need to earn
to double your
money.
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04
5. 05
For example, if you have
$270,000 in super and
need $540,000 to retire
and you are earning 6%pa
(after fees), then it will
take 12 years (72 / 6).
F O R E X A M P L E
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6. 06
THAT IS IF YOU ARE 52, YOU WILL NEED TO
KEEP WORKING UNTIL YOU ARE 64.
This can help you
plan for retirement.
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8. FOR MORE INFORMATION ON THIS OR
OTHER #FINANCIALEDUCATION HACKS
PLEASE CONTACT CONRAD VIA VISTING
IS WEBSITE WWW.CONRADFRANCIS.COM
Thank you.
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