This formula will change your life [Rule of 72]

00:00 - The World’s Most Powerful Formula
00:35 - The Rule of 72
01:17 - An Example
02:33 - Lesson #1: Start Early!
02:52 - Lesson #2: Own, Don’t Lend
05:08 - Lesson #3: Don’t Give Up!
08:03 - Thanks Supporters!

DISCLAIMER
This is entertainment only, not investment advice. All opinions expressed are my own. Any stocks or ETFs mentioned may be owned or taken a position within the next 48 hours. Neither the information nor any opinion expressed it so be construed as a solicitation to buy or sell a security of personalized investment, tax, or legal advice. This is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this report. The information herein was obtained from various sources. Dividend Growth Machine LLC does not guarantee the accuracy or completeness of the information provided by third parties. The information in this report is given as of the date indicated and is believed to be reliable. Dividend Growth Machine LLC assumes no obligation to update this information or to advise on further developments relating to it.

[bbryan]

Thanks for the insight, a question related to inflation: what do you think is the reason for the different effects of inflations on the other markets Aside stocks?… are we ever going to see as much bull run after the crash?? Or are we headed for ground 0

[MIchaelGuzman]

Despite the fact that I have a fairly focused portfolio, occasionally adding a tiny new position can be beneficial. It isn't done to diversify. Focusing on something new is a useful diversion from obsessively overanalyzing what you currently have. It gives you and your portfolio some breathing room.

[larse]

Great and educational, thanks. I started investing two years ago at age 50. However, I read that Buffet made 94 % of his fortune after he turned 60, so its never too late. AND more important - starting up small portfolios for my kids (11, 14, 17, 19), to ensure they get the chance to make wiser long term financial decisions than I did.

[Susanhartman.]

At the very least, I now grasp the concept of leverage. Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely.

[agentjacob]

The line between bold and reckless can be thin. I realized that Investing in the market is one of the the best ways to grow our money and beat inflation over a long time horizon although some knowledge is required it's probably less than we think

[michaeloliver]

It's strange how people talk about all the profits, they've been making through trading of bitcoin, while am here making huge loses. Please can Someone put me through on the right path or at least advise me on what strategy to follow.

[Sylvan_dB]

I feel very fortunate. My father taught me about interest and before I was a teen I was calculating how much I needed in the bank to live on the interest (the days of 5.25% passbook savings). Then he taught me the Rule of 72 to estimate doubling my money. A few years later I learned the math behind that approximation, but the ease of dividing into 72 has stuck with me. The one related thing he did not teach me was investing in the stock market. I left home with the understanding, "the stock market is for money you are okay to lose" and I had to figure the rest out for myself.

[pananP]

Getting rich off crypto is much tougher than it seems. I keep losing money while trading with these youtub videos, and finding a trustworthy professional trader to help out with these trades also appears to be nearly impossible. This is extremely annoying

[kidphillyorg]

Rule #2 hit me harder. When he said, “Don’t loan, own.” Im thinking about my time. I shouldn’t loan my time to corporate. I should own my time working in a business that’s mine. I’m in charge of my rate of return based on the services I provide and what I’m able to charge.

[RickTalbot]

Hi Nathan - This is so important for people with small children and might make a good standalone video: teach them how to invest properly, and setup a small portfolio for them if you can afford it. For example, in Canada there is the Registered Education Savings Plan, which you can contribute to until a child is College-Age. The government gives you a 20% topup grant, all gains are tax free, and if you're under a certain income threshold the government gives additional grants. In other words, even if you're working poor, you can teach your children to save and invest, and set them up early -- in the RESP model the child gets taxed when they pull it out in College, but most students pay little or no taxes, and if they are dilligent they can reinvest say half back into their own adult registered plan, so in effect they can be using the rule of 72 from as early as the age of 0! This is so important, because inter-generational wealth transfer is one of the ways that families can improve their standard of living and reduce poverty long-term.

[bitAtheist]

For anyone who wants to know "why 72?" the answer is 69 (point 3).

If you have any amount and wish to double it at 1% per period of time, your amount will have doubled from your starting amount after 69.3 periods of doubling (natural log 2).

The rule is 72 because though marginally less accurate it is easier to calculate in your head and approximates well.

[thomasdietrich]

When I was younger, I didn't understand the meaning of "the second million dollars is easier than the first" till I started calculating out my retirements investing plan over time. Yup, rule of 72 is simple math, but very powerful in motivating you into saving. Just wish I didn't just understand it, but applied it more when I was :D

[alienynnal]

Wow!! Very informative! From years of trying to understand compound interest, i can now step by step understand the rule of 72! Many thanks!!!!

[ludovictrottier]

You can also use the accurate formula which is log(2) / log(1 + x), where x is the return. So if you expect a 10% return, log(2) / log(1 + 0.1) = 7.27. You can change 2 for other numbers to know how long it would take to multiply your money by that number. So for 3x your money at 10% return, it's log(3) / log(1 + 0.1) = 11.52

[lailaatallah]

This is fantastically helpful and illustrative. I hope you’ll do a lot more videos in this vein, showing what happens depending on how much you invest, how early, and what happens when you keep adding money as you age, how to work it if you start later in life, etc. But, doing it in such a way that you show the comparative numbers and charts the way you do here. :)

[martin-xhfl]

That was a good video Nathan, very well spoken making it easy to listen to.

[Charles_Stone]

I will be forever be indebted to you, you have changed my entire life and I continue to preach on your behalf for the whole world to hear that with just a small investment you saved me from going into huge financial debt. Thank you Mrs Aubrey Richardson.

[axelg]

The compounding effect is really a superb phenomenon, but the examples from this video does not help very much. I don’t think that the goal of anyone trying to invest, is to have as much money as possible at the end of his/her life, but rather to have the necessary amount of money in order to have a happy and fulfilling life.

[horizontaldad]

love it ! ... I keep this formula written on the whiteboard with other data in front of my Airdyne

[blueflameSM]

The one thing I had to get over when it comes to investing is that it takes time, and the market will move. Just keep investing, learn more and losses will happen, but gains will also occur. I had to get used to losses.