Get Wealthy With the Rule of 72

Written by Vincent R. Moloney MD

When it comes time to retire how many people would like to have a nest egg that is 2 or 3 or even 4 times larger than what they have? With an answer so obvious allow me to explain how you can make it happen for yourself.

First we'll explainrepparttar Rule of 72. If you dividerepparttar 148867 number 72 byrepparttar 148868 rate of return on your investmentsrepparttar 148869 answer isrepparttar 148870 number of years it will take to double your money. If you are getting 7% annually then 72 divided by 7 equals a little over 10 so it takes 10 years to double. A 9% return divided into 72 gives us an 8-year time span to double. A 10% return needs only 7 years to double.

Now what return can reasonably be expected in our real world? Overrepparttar 148871 last 100 years or sorepparttar 148872 United States stock market has returned 10 to 11% per year on average, depending whose figures one reads. We'll userepparttar 148873 figure 10%.

Suppose at age 37 you start saving for retirement. We choose a reasonable sum of 110 dollars a month. In 7 years you notice that you have accumulated 13,200 dollars. Another 7 years go by and you see that you have nearly $40,000. Atrepparttar 148874 end of 21 years you have $93,000. By age 65 you notice that 28 years have gone by and you have $200,000 dollars. The rate of return kept steadily increasing. Those of you with some mathematical leanings will recognize this as an exponential rate and also as compound interest. This website has a good calculator:

Also notice that 28 represents four 7-year spans, time forrepparttar 148875 first dollars to double four times. Observe that duringrepparttar 148876 first 7-year period you accumulated $13,000, duringrepparttar 148877 2nd 7-year period $27,000, duringrepparttar 148878 3rd 7-year period $43,000 and duringrepparttar 148879 4th period $107,000. Duringrepparttar 148880 4th period you grew eight times as much as inrepparttar 148881 first period. All without changingrepparttar 148882 amount saved, $110 per month.

Day Trading - Moving Averages vs Support and Resistance

Written by Mike Reed

When day tradingrepparttar SP and Nasdaq futures, do you rely on your moving averages more than your support & resistant areas?

Duringrepparttar 148866 first hour of trading,repparttar 148867 support and resistance zones onrepparttar 148868 SP and Nasdaq futures arerepparttar 148869 most important things to watch. The moving averages have not yet had a chance to come into play.

After that, if a trend is developing I watch several key exponential and simple moving averages onrepparttar 148870 2 minute,repparttar 148871 5 minute andrepparttar 148872 13 minute SP and Nasdaq futures charts.

These specific moving averages give reliable support and resistance forrepparttar 148873 market as long asrepparttar 148874 slope ofrepparttar 148875 moving averages are fairly steep, indicating a trend. When there is no trend,repparttar 148876 moving averages are flat and pretty much worthless.

When a trending market makes a countertrend move, and hits a key moving average on two or more different time frames atrepparttar 148877 same time,repparttar 148878 probability of a good trade setup increases dramatically. If you get three hits atrepparttar 148879 same time, itís even better. Sometimes youíll see one key moving average get hit onrepparttar 148880 five minute SP chart atrepparttar 148881 same time another moving average is hit onrepparttar 148882 13 minute Nasdaq chart. This also gives a good trade setup.

Cont'd on page 2 ==> © 2005
Terms of Use