3. Rule72 This tells you in how much time will your money double. Divide 72 by the interest rate you are compounding your money with and you will arrive at the number of years it will take to double in value.
8. Rule70 This is a useful rule for predicting your future buying power. Divide 70 by the current inflation rate to know how fast will the value of your investment get reduced to half its present value. This is especially useful for retirement planning, as it affects the way you set up your monthly withdrawals.
9. Inflation rate of 7% Will reduce the value of your money to half in 70/7 = 10 10 years
11. The 10, 5, 3 Rule You can expect returns of 10 % from Equities 5%from Bond and 3% on liquid cash
12. 100 minus your age rule This rule is used for asset allocation. Subtract your age from 100 to find how much your portfolio should be allocated to equities.
