There are dramatic benefits to using time to help grow your investment. Advisers often refer to the ‘magic’ of compounding. The rule of 72 is a technique to estimate the number of years a sum of money, which is invested at a certain compound interest rate, will double. The rule of 72 is used by dividing 72 by the rate of interest earned.

For example, an investment having a compound interest rate of 8 % will double a sum of money in approximately 9 years, (72/8) and an investment having a compound interest rate of 15% will double in approximately 4.8 years (72/15).