Double Your Money?

Looking at the math is always interesting:
How long does it take to double your money?

Years Annual % rate needed
2/ 35.16
3/ 23.33
4/ 17.45
5/ 13.94
6/ 11.6
7/ 9.94
8/ 8.7
9/ 7.73
10/ 6.95

Now lets look at the flip side:

If your portfolio is down this percent / You need this to recoup/ +10%

- 5%/ 15.79%
-10 / 22.22
-15 / 29.41
-20 / 37.50
-25 / 46.67

This is why you avoid losses at all costs, just to get your money back plus a decent rate of return you need to have an extra ordinary gain/return just to get be whole again. Most people miss this important fact...and stay with losers or over trade their account hoping for a quick home run. To out perform, inflation, a falling dollar and get a positive rate of return after taxes takes real skill and patience. Leverage always works against you in flat or falling markets. In the current market too many investors are on the wrong side of this math.

So when the news of the day shows all the problems, they are all related to people reaching for returns, using leverage and staying too long at the party.

Life expectancy in the U.S. hits an all time high of 78 years. Remarkably this number is still lower than three dozen other countries.

Proper savings is so important as the world's populations are living longer as well as living within ones means.

Danny Boy seen here next to a 2001 BMW Z8, the same car James Bond drove in that years movie...Danny likes cars he barks at people when he drives by them.