Investors can double money faster using Rule of 72, targeting private investments for high returns.
From Yahoo Finance: 2025-07-02 08:01:00
Investors can double their money by understanding the Rule of 72, a simple formula that estimates how many years it takes to double an investment based on the expected annual return. Traditional strategies like high-yield savings accounts and investment-grade bonds take 14-18 years and 12-14 years, respectively. Broad market index funds take 8-10 years, leading more investors to seek higher returns in private investments.
Private equity and venture funds often target IRRs of 15% or more, allowing investors to double their money in under 5 years. The U.S. Home Equity Fund, for example, targets a 14%–17% net IRR by investing in home equity agreements, offering a faster doubling period tied to residential real estate, the largest store of wealth in the U.S. This trend towards faster returns underscores the need to balance asset allocation and liquidity planning based on projected returns.
Understanding how long it takes to double money can shape investment decisions, from long-term private investments for high returns to short-term cash products for liquidity. Layering public equities with higher-yielding private funds may shorten the doubling timeline without adding excessive risk. Different investments yield different timelines for doubling money, emphasizing the importance of intentional wealth building over passive saving.
Wall Street’s interest in owner-occupied homes and the potential for 15%+ annual returns is a testament to the shift towards alternative investments for faster wealth creation. Accredited investors can tap into this trend by understanding the Rule of 72 and aligning their investment strategies with projected returns for a more intentional approach to building wealth.
Read more at Yahoo Finance: How Fast Can You Really Double Your Money? The Rule of 72 Reveals the Surprising Truth