RUBY: what is it?

hamilton1977: The Rule of 72 is the approximate number of years it takes to double your money. So for example if you invest $4,000 in an investment that gives a constant rate (which normally fluctuates) of 2% your money will double in about 36 years if compounding monthly. How ever, if you were able to get a 6% your money would double in about 12 years and at 12% it will double about every 6 years.

Why is it important? To many people think it is safer to go the slow and steady route of CDs or other fixed rate investments. Problem with fix rate investments is that little thing called inflation. Unless your return on investment out paces inflation then you are no better off then putting the money under your pillow at night.

People face 2 major issues. One is living to long for their retirement and not having enough money to survive thereby having to take on small jobs or move in with family. The other major issue is dying (or dieing) to young and leaving debt or leaving loved ones without money to do last rights.

Rule of 72 illustrates the need to start out with investing sooner then later because the longer you give your money to compound the more you will have in the end. Even if you start investing now and within 5 to 10 years stop adding to your accounts you can make more money then if you waited the 5 to 10 years and start investing at the same monthly rate as before.

So there are three things that everyone needs to find out more about and get for their family besides for faith. One is Life Insurance, then long-term care, and finally retirement planing using mutual funds.

Make sure to understand the risks, exclusions, and the reason for each solution.

One last note: Go Term Life and not Whole life. If you plan right you should get to a point that the money you will leave behind in investments will equal or surpass that of the Life insurance thus becoming a waste of money in the end. Plus, Term Life can be cheaper.

Militarygroundhead: that's it hammo Imma kick your ass -.-"