Taking Care of Your Money

 RULE OF 72 STATES...  that if you divide an interest rate into the
number 72 that the answer approximates the number of years it takes something to double in size or in value.

For instance,

if our inflation rate is 3% and that 3% remains constant forever, then if we divide 3% into 72 our answer is 26...  which means it will take 26 years for the cost-of-living to double in value.

OR,

if our interest rate is 12% and we divide 12% into 72 and get an answer of 6, then that tells us if we put out money into an account that is earning 12% and that 12% remains constant, our money will double in value every 6 years.

This can be seen below:

$50,000

$100,000     6 years later

$200,000    12 years later

$400,000    18 years later

$800,000    24 years later

Now...  who actually has $50,000 laying around doing nothing???

But, insurance companies do have that kind of money as they receive monthly premiums from their clients...  and those monies are collectively deposited into a Mutual Fund that is earning 12%...  As this money doubles, the insurance companies are generating enough money to pay out their death benefits.

Why don't you save your monthly premium instead of giving it to an insurance company...  Just a thought...