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Plan Well, Retire Well

Saving and investing your money
Rule of 72 with coin stack

See -- You Do Want to Start Saving Early!


When we save and invest our money for retirement, the money we invest will likely earn a return on investment in the long-term. This return may be from earning interest, dividends, or capital gains from when we sell the investment.

The Rule of 72 helps us estimate how time and the rate of return affects our investment. If we divide 72 by the rate of return, we can estimate how long it will take our money to double.

For example, if our investment has a rate of return of 6%, our money will double in about 12 years (72 divided by 6 = 12).

Take a look at the coins in the picture. Each stack has double the coins as the coin stack to the left.

If you started investing when you were 24 years old, your money would double 3 times by the time you were 60 years old! (24, 36, 48, and 60 years old)

But, if you wait to start investing until you're 50 years old, your money would only double once by the time you were 62 years old .... mmm, that stack of coins doesn't look as impressive!

What if you were able to get a better rate of return, for example 9%? 72 divided by 9 = 8: your money would double every 8 years.

Back to the coins, if you start investing at age 24 years, your money will double 4 times before you're 60, (24, 32, 40, 48, and 56 years old) – early retirement, here we come!

Wait to invest until you're 50 years old, and your money will double once by the time you're 58 and twice by the time you're 66 years old.

The moral of the story: invest for retirement as soon as you can!



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