The Rule of 72 will help explain the compounding interest miracle even more. It tells us why “sooner is better than later”, but also why it is “never too late” to start saving and start investing with the C-lect rotation program.

Let’s say you want to retire at age 65. Let’s assume an average annual return of 9%. 9 into 72 is 8. This means that every 8 years your money will double. A 25 year old with a target retirement of 65 allows your money to double 5 times. That is 40 years divided by the 8. So, $1,000 doubles 5 times to $32,000.

Someone who waits until they are 33 to start the same program with the same investment and same returns, however, will end up with $16,000. It doubles only 4 times. If one waits until they are 41, they end up with $8,000.

As you can see, the longer you wait to save, the less at retirement you have, even with the same portfolio return and same contribution.

Alternatively, the younger you are when you start, the more time there is to double again your money. Some parents or grandparents help their children and even children’s children in
using an IRA or Roth IRA to take maximum advantage of it.