The Weekly Wealth of Knowledge is your download of this week's most important topics related to financial planning, the markets, and our community.
In this issue:
- The Rule of 72 - (2 minute read)
- From Boats to Brokers - History of the Stock Market - (video)
- Cost of home improvement projects - (2 minute read)
Click on the video below to hear from one of our advisors, Nick DeSousa:
The Rule of 72
July is National Independence Month here at the firm where we will be highlighting the power of independence all month long across our nation and how we work as independent financial planners. Part of our goal at Moneco during Independence Month is to teach our clients about becoming financially independent. When it comes to investing, the Rule of 72 is a useful approach to find out how long it will take until your current investments double.
By dividing 72 by the annual rate of return, investors can loosely determine how long it will take for their investments to double. If your money doubles every ten years, then the average investor could potentially have approximately 4 doublings within their lifetime.
The reason that the rule of 72 is so important is because it allows you to plan to grow your money within a certain amount of time, usually coming up to the years that you will retire. With this in mind, it is important that you maximize the potential doublings of your investments to stay financially independent in retirement.
Click here to learn more about the Rule of 72!
From Boats to Brokers - A History of the Stock Market
The month of July is all about celebrating independence and the history of America. A large part of American history is the introduction of the Dutch East India Company, which is largely responsible for the New York Stock Exchange and Wall Street as we know it today.
From the Dutch East India Company to Wall Street, the stock market has a long and storied history.
Watch a video about the history of the stock market here.
Cost of Home Improvement Projects
Even with a widespread pandemic and an economic downturn, the home remodeling industry remains strong. According to Harvard’s Joint Center for Home Studies, home remodeling is a 450 billion dollar market, and is only expected to get bigger with time.
The past few months have been the perfect opportunity for families to begin home remodeling projects, due to the increased time spent at home.
Homeowners and renters are always looking for ways to invest in home improvement projects, but the return on value for projects varies from year to year. Therefore, it is important to analyze which projects currently have the biggest return on value.
This article breaks down which projects will cause the return on investment to increase, and the difference between the cost of the project and the value.
Click here to read more!