Pretty scary
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Yea, before going full time in Primerica, I used to work for a company that did online banking and I had to go through a principles of banking class. The banks basically take your money and place it into securities, pocket their 8-12 or more percent share and give you the breadcrumbs. It's scary when you realize what's going on out in the world and when people are not properly preparing for it.
Some guy at Primerica tried to hire me away from my current job. In the conversation or two I had with him though, I learned quite a few things like the Rule-of-72. Take 72 and divide it by the interest rate and that is how many years it will take to double your money. For example:
72 / [Interest Rate] = [Approximate Time to Double]
72 / 12 = 6 years with a 12% interest rate
72 / 1 = 72 years to double with a 1% interest rate.
The banks are definitely making money, it's always a good idea to put some of it where it can make money such as in stocks, mutual funds, etc.
72 / [Interest Rate] = [Approximate Time to Double]
72 / 12 = 6 years with a 12% interest rate
72 / 1 = 72 years to double with a 1% interest rate.
The banks are definitely making money, it's always a good idea to put some of it where it can make money such as in stocks, mutual funds, etc.