The Rule of 72

[FunInTheSunParticipant 8283]

A simple explanation of the Rule of 72 for investors:

"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)

[MarketWatcherParticipant]

Don’t get me started.

LEARN THIS S~~~ YOUNG BROTHERS!

+100

[Anonymous 43]

I love the rule of 72!!!!

Way better than Rule 34!

[FunInTheSunParticipant 8283]

MarketWatcher wrote:

LEARN THIS S~~~ YOUNG BROTHERS!

I’m kind of mad at myself now because I knew about compounding interest when I was in my 20s. I got discouraged from investing after getting involved with a whole life insurance company that went out of business. I invested a few hundred dollars and they swallowed it. I never got my money back. I should’ve invested in something else. I’m putting money in my 401(k) plan now.

Imagine going from age 20 to age 50 with consistent contributions to an IRA w/ conservative investments.

"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)

[TheSpiceParticipant 2644]

Cool video. I WISH we had 4% interest rates back.

I remember in like 2004-2005ish I had a savings account with 4.5% interest.

Nowadays, I feel SUPER lucky to have found one paying 1.75%

"I've been thinking about what it would be like if we got back together."
"You know it's too late for that."

[JustAnotherGuyParticipant]

TheSpice wrote:

Cool video. I WISH we had 4% interest rates back.

I remember in like 2004-2005ish I had a savings account with 4.5% interest.

Nowadays, I feel SUPER lucky to have found one paying 1.75%

I had a savings account in 2004 to route my first job’s paychecks to. I think the interest was around 4% . Couple years later, the bank got merged and I didn’t get anything remotely close to that.

Cupcakes are Cold. MGTOW is Absolute Zero.
“Let us wait a little; when your enemy is executing a false movement, never interrupt him” –Napoleon Bonaparte, 1805

[Anonymous 3]

Yes, the compound interest… It would be funny if there were any interest rates here above the level of inflation of price of stuff I want. Treasury papers may keep up with inflation here, companies are stupid bulls~~~ and whenever I bought any stock it began falling.

So now I just collect at least 2/3 -sometimes 3/4- in savings to finally buy my own small piece of real estate without mortgage. (Because, banks scammed a lot of people with mortgage contracts in last few years here, some lost the money and house both, some paid for one house twice or more.) And I’m well paid, but I get angry when apartment prices go higher faster then my savings.

Later, I need to figure out, what investment is not a complete corrupt scam bulls~~~, and actually pays at least some positive interest rate… Investment options of one depends on country if living. And I do not know laws of other country to invest abroad, and cannot trust them either.

[Anonymous 3]

About the video, and interest rates. I looked back my bank account data recently, on what interest rates were available from 2004 to now at the bank.

The video mentions 4% interest rate as the smallest… It was like that for long time, 4-5 %. Then there was a short time when it was 8-10%, for a few months. Probably the bank was in need of money.(That number was like the second highest in the video. Largest interest rate I ever saw in life.)

Then interest rates went back down, now it is like 0.01% (not a typo!) for saved money in the bank where I keep money. Has been like that for many years. Interest is not even enough to pay the small costs of having an account. Whatever, I spend more on beer, who cares, at least I dont need to keep all of cash at home. Treasury papers pay 2-3 % but that is also (sort-of) neglegible, when everything gets more expensive faster.

On comparison, I could buy a small cheap apartment here for the equivalent of $23k, in order to not pay circa $2700 a year for rent, and that is 11.74% interest on my money. Almost near the 12% in the video. One will never get such interest rate from any bank…. A few months to go until I have that much in my savings.

On even more comparison: being Mgtow means an additional 50% that one does not lose in a divorce. (topic about it below in my signature…)

Another idea:
Have credit cards, mortgages, bank loans? Guess what apply the rule of compound interest on that, how much time does it take to double?

[BritGHOWParticipant 2566]

Unfortunately at this moment in time the traditional laws of saving/investing have been overturned due to risk in asset bubbles caused by trillions of dollars of funny money in quantitative easing and interest rates being deliberately suppressed in twin acts of economic sabotage the ramifications of which will be felt for at least a generation.

Here in the UK the top savings rates available today are 1.8% for a 3 year ISA or a 2.25 (also 1.8% after tax) for a 5 year bond, by this rule that’s 40 years (ie a working life) to double your initial investment only to likely see it worth less than when you started. The last time even the official measure of inflation was that low was January last year, and the total for the year was 2.7%

So, invest £10k, earn £180 in a year but goods originally costing £10k now cost £10,270 leaving you £90 out of pocket. Small wonder savings rates are falling among people tired of being ripped off.

[ZarathustraParticipant 2246]

I Canada its starting to get better. You can get a cashable term deposit for 1.5%, not bad fro safe money.

[Anonymous 0]

Anonymous wrote:

On comparison, I could buy a small cheap apartment here for the equivalent of $23k, in order to not pay circa $2700 a year for rent, and that is 11.74% interest on my money. Almost near the 12% in the video. One will never get such interest rate from any bank…. A few months to go until I have that much in my savings.

I would like to add – it’s almost the same level of apartment prices and rates are represented here, in Russian province.
At this moment in Russia, bank loans are two times larger than deposit interest rates.

One can find 9% interest rate for you deposit, but at the same time it’s hard to find and loan with less than 18% interest rate. And they’re changing pretty much everyweek, if not everyday. And that is applicable to Russian rouble. USD, GBP, EUR have another rates, something like 2%, but with even more severe terms of deposit opening.

Well, to be honest, I won’t keep my money in Russia.
If I stay here, I won’t even collect my pension, ’cause according to statistics, Russian men are dying at age 59.5 years old. Just half a year right before retirement…

Calculated, planned and executed with deadly precision, isn’t it?

[Anonymous 3]

Anonymous wrote:

At this moment in Russia, bank loans are two times larger than deposit interest rates

Here, in Hungary:
bank deposit rate: 0.01%, 0.1 % if one is lucky.

treasury papers: 2%-3% (many different versions)

Mortgage rates (for buying real estate) : 2.6 – 3.5% (+big confusion and additional costs)

And plus the government supporting certain life decisions from taxpayer money, as (like everywhere in the western countries) birthrte is low.
Married couples and families with children (already born or officially planned) can get so called “financial support for home for families”,
$2300 after 1 child, $10k after 2 children, $38k after 3 or more children, for building house or buying newly built homes. (but only up to $10k money for second hand more affordable homes in every case, they want to boost home building industry too)

Bank loan rates (for any use): 8-23%

Credit cards: banks now push the people to use credit cards (instead of the more widespread debit cards and cash) with a few percent of “money-back” after buying at some shops and petrol stations etc. This is I guess, to nudge susceptible people into over-spending, and then pay 34-40% of interest rate after it.

Anonymous wrote:

Russian men are dying at age 59.5 years old. Just half a year right before retirement…

Men live many years shorter in every country. If women can demand ‘equal’ salary and all equality stuff, we men should demand equal life expectancy! Imagine the situation was the opposite, the last piece of money in treasury would be spent on solving the problem…

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