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Updated 2mo ago.
Updated 2mo ago.
The Rule of 72 is a math shortcut to estimate how many years it takes to double your money. Divide 72 by your annual rate of return and you get the approximate number of years.
With an 8% annual return (historical stock market average), 72 ÷ 8 = 9 years to double your money. If you invest $10,000 in VEQT.TO today, you could have about $20,000 in 9 years, $40,000 in 18 years, and $80,000 in 27 years — without adding a single dollar. In a GIC at 4%, it takes 72 ÷ 4 = 18 years to double.
The Rule of 72 illustrates the power of compound interest in a concrete way. It helps you quickly compare different investments and understand why starting early makes a huge difference. Every decade you delay is one less doubling of your money.