2024-01-25 07:08:05 ET
Summary
- The Rule of 72 allows investors to estimate the number of years it would take for their portfolio to double, given a certain yield level.
- Several criteria must be met for the concept to work effectively, including a stable level of return and reinvesting all income generated.
- In this article, I share the key aspects to consider in fostering the yield predictability and portfolio stability.
- Plus, I provide 5 high yielding picks, which in a certain combination produce ~9% yield that leads to a great potential in doubling the portfolio value in just 8 years.
Rule of 72 is a simple concept, which allows investors to quickly calculate (and estimate) the number of years it would take for the portfolio to double given a certain level of annual return. The calculation is dividing 72 by the annual interest rate or yield, where the result indicates the number of years until portfolio value doubles....
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For further details see:
Maximizing The Rule Of 72 With These 5 High Yielders