Page 80 - Charles Calhoun Book Rich As You Want To Be

numbers because the products that earn the smaller
incomes they are told are considered to be “safer.” Hmmmm,
that is very interesting. It is also very wrong headed. Our
schools could teach how numbers and money work together.
The information is available to anyone who seeks it. It’s not

secret. But each of us is responsible to become informed. And
if we don’t then shame on us. These ideas are of great
importance because money and wealth have a huge impact
on every aspect of our lives.
Oddly enough, all three of the above figures resulted from

the same amount of money invested for the same length of
time. Could different rates of return result in such huge
differences in income? Simply put, YES!
The rule of 72 is a well-known idea. Yet most people

have never heard of it. It is very important though. Many
financial professionals know of it. And unfortunately, many
financial professionals actually sell the products that result
in the lower numbers above.
Let me explain how the rule of 72 works. If you take
the number 72 and divide into that number, the annual rate

of return on your investment, the answer is the number of
years it takes for your investment to double. Doubling your
investment is very profitable. People like to do that. Here are
some investment returns. You can achieve any of these: 2

percent per year; 4 percent per year; 8 percent per year; 12
percent per year; 18 percent per year; and for a superstar, 24
percent per year.
Rate of return refers to how much you earn on your
investment PER YEAR. Percent means per 100. A 6% return
means you would earn $6 per $100 invested per year. If you
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