How long does it take to double your investment account?

The magic number is 7.2. At an average of 10% return, your portfolio will double every 7.2 years. That is if you allow it to compound and reinvest dividends. Example below of a $1,000,000 portfolio.

This is what passive is! Every 7.2 years your portfolio can double and that is with you doing absolutely nothing. To me that’s pretty sweet. The sooner you start the sooner you get to compound returns. Every dollar you invest today, is worth $17.45 in 30 years. Don’t let me tell you how much $1 is worth in 30 years if you just let it sit in a checking account.. Now that you know this, will your decision making be affected? What we miss out on is called opportunity cost. That’s what we’re missing out on in return if we buy a low return asset or even worse, a liability, compared to buying an asset that brings in a high yearly return. Keep this chart in mind next time you decide to buy a ferrari my friends. $250,000 for a car? Or… getting paid $250,000 every 7 years? I think the answer is easy.