The Rule of 72: A Simple Way to Assess Whether Your Financial Goals are on Track
One of the most common questions I hear from clients is:
“Am I actually on track… or am I just hoping this works out?”
That uncertainty can feel heavy, especially when retirement is closer than it used to be. The good news? Sometimes all it takes is a simple framework to turn confusion into clarity.
That’s where the Rule of 72 comes in.
What Is the Rule of 72?
The Rule of 72 is a quick, back-of-the-napkin way to estimate how long it takes for your money to double at a given rate of return.
Here’s how it works:
72 ÷ your average annual return = years to double your money
No complex spreadsheets. No financial jargon. Just math you can actually understand.
Jennifer’s Story: From “Is This a Pipe Dream?” to “I Can Do This.”
Jennifer came to me with a big question and a knot in her stomach.
She wanted to retire in eight years.
She had $450,000 invested.
And she wasn’t sure if her goal was realistic—or wishful thinking.
Her investments had been earning about 10% annually,* so we applied the Rule of 72:
72 ÷ 10 = 7.2 years
That means her existing money is on track to more than double in roughly the same time frame she wants to retire.
And that’s before we even talked about the $70,000 she’s adding every year.
When Jennifer saw the math laid out clearly, without jargon or fear tactics, something shifted. The anxiety softened. The goal felt reachable. Retirement stopped feeling like a gamble and started feeling like a plan.
That’s the power of understanding what your money is actually doing.
Why Simple Math Builds Confidence
Most people don’t need more information.
They need better explanations.
When you can see:
how your money grows,
how time works in your favor,
and how your ongoing contributions matter,
You stop guessing and start deciding.
Confidence doesn’t come from perfect certainty. It comes from clarity.
Who I’m a Great Fit For
I’m especially helpful for clients who:
plan to retire solo,
love and unapologetically spoil their dog,
want to live fully now and intentionally later,
and believe in the idea of “die with zero,” using money as a tool, not a scoreboard.
If that sounds like your client (or you), here’s one of my favorite questions to ask:
If you unexpectedly had a full month off work—no responsibilities, no obligations—how would you spend it?
That answer tells me far more than a risk tolerance questionnaire ever could.
Because money isn’t just about retiring someday.
It’s about building a life you’re excited to live.
*Disclaimer: Performance is historical, and past performance is no guarantee of future performance. Current performance may be lower or higher than the performance mentioned in this post.
This is a hypothetical situation based on real-life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing. The rule of 72 is a mathematical concept and does not guarantee investment results nor function as a predictor of how an investment will perform. It is an approximation of the impact of a targeted rate of return. Investments are subject to fluctuating returns and there is no assurance that any investment will double in value.