Investment Insights

📈 Rules of Thumb in Investing 🏆

Investing can seem complicated, but these simple rules can help you make smarter decisions! 🚀

1️⃣ The Rule of 72 🧮

⏳ Want to know how long it takes to double your money?
👉 Divide 72 by your annual return rate!
✅ Example: If you earn 8% per year, your money doubles in 9 years (72 ÷ 8 = 9).

2️⃣ The 50/30/20 Rule 💰

🔹 50% → Needs (Rent, Bills, Groceries)
🔹 30% → Wants (Travel, Entertainment)
🔹 20% → Investing & Saving

💡 The key? Invest consistently! 📈

3️⃣ The 4% Rule 🏖️ (Retirement Planning)

Want to retire without running out of money? 💸
✅ Withdraw 4% per year from your portfolio.
✅ Example: If you have €1,000,000, you can safely withdraw €40,000 per year.

4️⃣ The "100 Minus Age" Rule 🏦

How much should you have in stocks vs. bonds?
👉 Formula: 100 - Your Age = % in Stocks
✅ Example: If you’re 33, put 67% in stocks & 33% in bonds.
💡 But if you're aggressive, you might ignore this rule and go heavier on stocks! 🚀

5️⃣ Time in the Market > Timing the Market ⏳

📉 Trying to time the market? Risky.
📈 Investing for the long term? Smart.
✅ The best investors stay invested, no matter market fluctuations!

6️⃣ The High-Yield Dividend Trap ⚠️

🚨 A dividend yield above 7-8%? Be careful!
📌 Check if the payout is sustainable before investing.
📌 Some companies cut dividends when they can't afford them!

7️⃣ Diversification Rule 🌎

🚫 Never put all your money in one stock!
✅ Spread investments across sectors, industries, and countries.

8️⃣ The Dividend Snowball Effect ❄️

💰 Reinvest your dividends to grow your passive income even faster!
✅ More dividends → More shares → Even more dividends! 📈