You will find the best ways to invest money and prepare for retirement will be the most useful plan you will ever execute. Don’t let anyone tell you that all financial vehicles are the same. They’re not! We will provide you with the direction needed to having a successful plan for your future in place.
The Best Ways to Invest Money
You need to change the way you are preparing for your retirement. It can make the difference from an average retirement (or very weak anyway) to an amazing “no worries” Retirement.
Did you know that you can pull funds out for retirement tax free? Finally, learn how you can get the best returns on any retirement program.
How do we really know if our money is in the right savings or investment vehicle? Also, we may want to ask ourselves how long it will take for our money to double. Based on the interest rates we currently receive, there is a formula that makes this calculation really easy.
You can use the Rule of 72, as CNBC explains how long it will take for your investments or savings to double.
Here is the Rule of 72 Simple Formula:
72 / interest rate = years to double
Try entering various interest rates from your different money accounts. From money market accounts, savings, index, and mutual funds. Here are some examples below:
1% – will take 72 years to double your money (72 / 1 = 72)
3% – will take 24 years to double your money (72 / 3 = 24)
6% – will take 12 years to double your money (72 / 6 = 12)
9% – will take 8 years to double your money (72 / 9 = 8)
12% – will take 6 years to double your money (72 / 12 = 6)
So, what the Rule of 72 tells us, is we all have the power of finding savings vehicles that earn the highest growth potential. Although, it can be risky to put our hard earned money in the stock market. And, you also have risks leaving your money in a savings account.
Furthermore, The Rule of 72 also reminds us of the power of a single percentage point. If someone has the choice between putting money into a 1% APY savings account or a similar account with a 2% APY, it’s like asking whether or not you would like to double your money in 72 years or 36.
So do the numbers and ask yourself if now might be time to start looking to save your money in a better place.
Watch the New York Stock Exchange LIVE bell here.
For additional information on how to make that extra income so you can invest, visit our Employment and Jobs page here.
