Download Two rules worth knowing to double your money

Two rules worth knowing
the Rule of 72 and the Rule of 108
to double your money
The “Rule of 72” estimates how long it takes tax-deferred funds to
double given an anticipated growth rate. Simply divide 72 by the
anticipated growth rate to determine the number of years. For
example, tax-deferred funds growing at 5% would double in
approximately 14 years (see table).
The other
estimates
assuming
double in
rule worth considering is the “Rule of 108.” This
the time needed for taxable funds to double,
an anticipated growth rate. Taxable funds will
approximately 22 years at a 5% growth rate.
Growth Rate Rule of 72
Rule of 108
(Tax deferred)* (Taxable @ 33%)
2%
3%
4%
5%
6%
7%
8%
36 years
24 years
18 years
14 years
12 years
10 years
9 years
54 years
36 years
27 years
22 years
18 years
16 years
14 years
* Once funds are withdrawn from a tax
deferred annuity they become taxable.
American equity Investment Life Insurance Company
P.O. Box 71216 • Des Moines, Iowa 50325
4087 10.18.13
Would you prefer to double
your money in 14 or 22 years ?
The Rule of 72 is a tool for estimating annuity growth. Any withdrawals, taxes,
and surrender charges are not considered in these rules.
This document is prepared to provide general information only. It is not intended or written
to be used, and cannot be used to avoid tax penalties or promote, market or recommend
any tax plan or arrangement. Neither American Equity Investment Life Insurance
Company nor any of our agents give legal, tax or investment advice. Consult your
own personal advisor for these matters.
Benefits of
AMERICAN EQUITY’S
Fixed Annuities
• Tax Deferral
• May Avoid Probate
• Guaranteed Income
• Guaranteed Minimum
Interest Rate
• Penalty-free Withdrawals starting in second Contract Year
www.american-equity.com
Call us at
888-647-1371
6000 Westown Pkwy West Des Moines, IA 50266