Ask Paula: Should I Take a Higher-Paying Job if I Can’t Save As Much for Retirement?
Afford Anything
00:00
How Important Is the Rule 72?
The rule 72 says that if you take the interest rate you think you're going to get, divide it into 72, divide it by 72. So if he gets an eight % rate of return on that long term money into 72, that's nine years. Half million stays paula, that's not 500 thousand dollars that stayed out there. It's now a million dollars. Think about just how much more life that doubling buys. And when we get too conservative too soon, we give up that last double, which is always the most important double.
Transcript
Play full episode
