The Rule of 72 is simple way to measure how long it will take you to double your money with a dividend stock. All you have to do to make solid plans for your retirement is divide 72 by the annual rate of interest you receive from a dividend-paying stock.
So if you have a stock that pays 7% a year, and you reinvest the dividends, you'll double your money in 10 years. With information like that, it's a lot easier to know exactly what you'll be able to afford for your retirement.
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