How long will it take to double your money when investing?

In this episode of Financial Advisors Say the Darndest Things, A.B. Ridgeway dives into the Rule of 72, a simple formula that helps you estimate how long it will take to double your money based on the rate of return on your investments. Whether you're investing in CDs, annuities, or the stock market, understanding this concept can help you set realistic expectations, manage risk, and plan for retirement more effectively. Ridgeway also explains why starting early is key to reducing risk and achieving financial goals.

Key Takeaways:

1. The Rule of 72 Demystified: The Rule of 72 helps you calculate the time required to double your money. Simply divide 72 by the annual return rate. For example, at 6% interest, it will take 12 years to double your money.
2. Setting Realistic Expectations: Financial advisors aren’t magicians who can double or triple your money overnight. The Rule of 72 provides a more realistic view of growth, helping you avoid unnecessary risk.
3. Start Early to Minimize Risk: Beginning your investment journey sooner allows you to take on less risk while still achieving your goals. Investing later often requires higher returns, which can increase your risk exposure.

Memorable Quotes:

1. "The Rule of 72 is a tool that simplifies complex financial projections, helping you make better decisions about where to put your money."
2. "The market rarely gives you a consistent 10% return year after year; it’s about staying the course through the highs and lows."
3. "Starting early allows you to take on less risk and still meet your financial goals—time is your greatest ally in investing."

💵Sign up for a Christian Finance Consultation and create your Financial Plan Today!

https://calendly.com/abridgewaywm/consultation

📖Free E-Book- 4 Pillars to Christian Investing: https://mailchi.mp/abrwealthmanagement/christianinvesting

🏠 Visit our Website: https://www.abrwealthmanagement.com

*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.