so I am hanging out at Obllio's the other night and a couple of guys start talking about the rule of 72. Now I never pretended to be the smartest guy in the world.... far from it. And some of these guys are much smarter than I am.... the equalizer at Ob's is that we all bend our elbows the same way. Anyways..... some of these guys are CEO's, lawyers, accountants, investors.......and to a T, all Green Bay Packer fans and appreciators of good beer. There is a camaraderie in beer and football that makes us equal.
But that night the more financially astute start talking about something called the rule of 72 (or some such) and in a nutshell......
A golden rule of investing is known as the Rule of 72. It is way to calculate how long it will take your investments to double in value.
If you divide the number 72 by the rate of return you expect to earn on your investments, you will find the number of years it will take for your investments to double. For example, if you are earning 7% per year, it will take about 10 years. If you are earning 14% it will take about five years.
You can use the same calculation to find the rate of return required to make your portfolio double. Just divide the number 72 by the number of years that you want the money doubled. For example, if you want your money doubled in 10 years, you will need a 7% percent return.
OK. I am going to take my $15,76 and get it into some hot stocks. Today.
But then the thought hit me......America has invested over $1Trillion in the wars in Afghanistan and Iraq. I guess that was not a good place to invest in. Otherwise we would now have, what, $2 Trillion in the bank.
Well, we don't. It ain't there. We invested the money and what did we get???????
Now that is not school building.
..... and it sure isn't comprehensive health care
All I have heard this election year is that we need to cut taxes and reduce the size of the Federal Government.
So....... I am not the smartest guy in the world..... far from it.....but it seems to me that if we are not fighting a two fucking wars..... we can cut taxes.
And if we are not fighting two fucking wars..... we can greatly reduce the amount of Government needed to prosecute those fucking wars.
And........ get around to investing in something really important.