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The 144 law is a calculation rule that easily estimates the number of years until the asset is 4 times.
The idea is the application of 72 law.
4 times ≈ 144 ÷ (%)144 ÷ 6 = 24 years.
The 144 laws can be used to see the number of years in which assets are doubled. In this article, we will organize the meaning of the 144 laws, the difference between the 72 laws, how to use long-term investments, and the caution for beginners.
What is the Law of 144?
The law of 144 is how to calculate the period until the asset is doubled.
In the law of 72, the number of years the asset doubles. In the 144 law, it is an image that doubles it twice again.
Double x Double = DoubleIn other words, it is a guide to投資 the speed of long-term investment, which is effective twice.
Calculator
The formula is as follows:
4 times ≈ 144 ÷ (%)For example, if the average 6% is 6%, it is calculated as follows:
144 ÷ 6 = 24In other words, it is about 24 years until the asset becomes 4 times if the asset is managed for a long period of time at 6% annual interest.
Example
The following is a guide for each yield.
| Year | 4 times |
|---|---|
| 3% | About 48 years |
| 4% | About 36 years |
| 6% | 24 years |
| 8% | 18 years |
| 9% | About 16 years |
| 12% | About 12 years |
Even with the same 4 times, the number of years required varies greatly depending on the average yield.
However, it is important not to judge by numbers because the higher the yield, the greater the risk.
Why 144?
The number 144 is the rule of 72.
In the law of 72, the number of years the asset doubles. 4 times more than doubled assets.
72 × 2 = 144For this reason, the 144 laws refer to the "number of years until doubles occur twice with double interest".
Differences between 72 laws
The 72 laws and 144 laws are intended to intuitively understand the interest.
| Legal | View |
|---|---|
| 72 Laws | Number of years to double the assets |
| 144 Laws | The number of years in which the asset becomes 4 times |
72 law is intended to confirm the first large section of interest. The 144 laws are intended to confirm the major differences in long-term ownership.
Important Reasons for Long-term Investment
144 laws are important because long-term investments have a significant difference in time.
10 years, 20 years, and 30 years. In particular, the longer the profit is more profitable.
For example, in a short period, the yield difference of a few percent may seem small. However, there is a significant difference in the final asset amount in the investment period of more than 20 years.
The 144 laws help you understand this long meaning.
How to use for beginners
144 laws can be used when you have an image of post-age assets and long-term資産umulation.
For example, if you are thinking about long-term investments in NA or iDeCo, you can see how long your assets will be 4 times per year.
It is also useful when comparing the expected yield of investment products. However, the expected yield does not guarantee the future.
When using the 144 law, check the following points.
- Investment period
- Risk Tolerance
- Fees
- Taxes
- Is it possible to continue at the time of crash?
Common misunderstandings
The 144 laws do not guarantee that the assets will be 4 times more.
In the actual market, there are years to rise and fall. Operation results vary greatly depending on economic re ement, interest rate ctuation, currency ctuation, and financial crisis.
In addition, the number of years up to 4 times will be shortened if the high yield is assumed. However, high returns have high risk.
Care is required for products that highlight leverage, extreme in。 investment and high yield.
- The 144 Laws approximate the number of years in which the assets become four times
- The calculation formula is "144 ÷ Annual interest (%)"
- 72 Laws
- Easy to understand the importance of spending time with long-term investment
- There is a risk for high yield, so you need to be careful
First of all, let’s understand that bilingual investments are time-oriented. 144 law is a convenient guide to think about long-term asset formation rather than short-term business movement.