Page 87 - Charles Calhoun Book Rich As You Want To Be

three more times for a total of twelve times or twelve doubles!

$5,120,000 -> $10,240,000 -> $20,480,000 -> $40,960,000
Wow! That is a ton of money!

Wow, $10,000 invested for thirty-six years, if you
were fortunate enough to get a return of 24 percent, you
would have about $41 million. That is really a staggering sum.
That would pay you about $3,276,800 per year or about
$273,000 per month. Crazy but TRUE! And you would be

leaving $40 million to your “happy” heirs or enjoy it as would
suit you.
The question to you is “Would you prefer to have the
income of $273,000 per month or would you prefer the $266

per month?” Well, it’s no contest. These are numbers that are
real and actually do happen. One of the sad facts is that
many Americans choose the investments that pay them the
$266 per month not because they want the smaller amount,
but because they are unaware of the consequences of the
rule of 72 and how it works. And of course, lots of people

don’t ever save the $10,000 making their monthly payout $0.
Chapter Postscript:
The rule of 72 is an excellent way to estimate a future total.
It isn’t accurate to the penny, but it is a good ballpark figure.

For example, if we calculate the actual value of the last
example, we would get the following:
If $10,000 were invested at 24 percent for thirty-six years,
the final total would be $51,900,000 (Wow!) rather than the
rule of 72 estimate of $41,000,000. In either case, you would
be a happy investor and a person without financial concerns.

You can calculate these numbers easily and accurately
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