How long does your money take to double?
That one question reframes everything.
6
Years to double at a 12 percent return. The shortcut is 72 divided by the return. It turns a percent your eye skips over into a number your gut can actually hold.
Friend asked me over chai how long his money takes to double. Not what return, not which fund. Just, when does it turn into twice as much. Best question I had heard in a while, because doubling is the one thing about compounding your brain can actually picture. So I gave him the trick I run in my head. Seventy two divided by the return. Twelve percent, six years. Then I showed him what happens to that six when the rate slips a little, and he put the cup down.