6,932

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Dec 16, 2009 3:51 pm

It just occured to me today even though I had read Bill Gross' December commentary a while ago, and I haven't quite thought how I would use it all the way through yet.

 
But, the number is 6,932.
 
When people are reluctant to do anything with their money, and just leave it in MMKT, answer them with "6,932". 
 
They'll say, "What does that mean?"
 
You say, "Well, MMKT is earning .01%.  If you can live another 6,932 years without any withdrawls, you'll see your money double".  Or something like that.
 
Again, I don't know how I would use that on a cold call or in a seminar, but I know there are ways.  Heck, I have clients with money in MMKT funds that haven't done anything...I'm sure plenty of people out there are still in MMKT funds.
Dec 16, 2009 4:02 pm

If they say no to a rate, you can come back and say, 20 years or 6932... those are your options right now. And the longer you wait the more 6932 becomes reality.

Dec 16, 2009 4:04 pm

72/.01=7200


Come on you're being too generous
Dec 16, 2009 4:18 pm
Squash1:

If they say no to a rate, you can come back and say, 20 years or 6932... those are your options right now. And the longer you wait the more 6932 becomes reality.

 
Nice...I like it.
Dec 16, 2009 5:39 pm
gethardgetraw:

72/.01=7200


Come on you're being too generous
 
He's right Snags, the rule of 72. Your number sure has more of a dramatic twit though.
Dec 16, 2009 5:43 pm
Gaddock:
gethardgetraw:

72/.01=7200


Come on you're being too generous
 
He's right Snags, the rule of 72. Your number sure has more of a dramatic twit though.
 
Well I don't exactly have Bill Gross' phone number to find out if he rounded the .01% or whatever!
 
Besides, if you wanted to give the client/prospect the commentary, I guess you'd want it to match at 6,932.
Dec 16, 2009 5:53 pm
gethardgetraw:

72/.01=7200


Come on you're being too generous
 
~0.010386612810155799192152336987882%
 There happy now?
 
No matter how far it's streched out, that still sucks!!
Dec 16, 2009 6:48 pm

Hah, nice sig DeBolt

Dec 16, 2009 7:35 pm
gethardgetraw:

72/.01=7200


Come on you're being too generous
 
Yea whoever did the math on that is an idiot, but a nine syllable number sounds a little more intimidating (corny?) than a six syllable number.
Dec 16, 2009 8:28 pm

'Well, in 6,932 years, I will have doubled my money, and you'll be broke.'

Click.

Dec 16, 2009 8:30 pm
DeBolt:
gethardgetraw:

72/.01=7200


Come on you're being too generous
 
~0.010386612810155799192152336987882%
 There happy now?
 
No matter how far it's streched out, that still sucks!!

 
 
You guys know that the rule of 72 is an estimate, right?
Dec 16, 2009 8:41 pm

Didn't Al Gore invent the rule of 72?

Dec 17, 2009 12:24 am

Yes but his rule states the polar ice caps will melt half way every 72 years

Dec 17, 2009 10:13 am

My BA II PLUS tells me 6,931.82 years.

Dec 17, 2009 10:54 am

You can then tell them after that that their $1 pack of gum will cost $9,382,053,436,234,820,000,000,000,000,000,000,000,000,000,000,000,000,000.00 in the year 8401.

Dec 17, 2009 10:55 am

You are misleading the client if you give that number, IMHO.  You make the assumption that rates will be the same the next 20 years.  Or 30, or 6931 and nine and a half months.


Dec 17, 2009 11:02 am

"At that rate it will take 6931.82 years to double your money."



Nothing factually incorrect or misleading about that statement.

Dec 17, 2009 1:54 pm
Moraen:

You are misleading the client if you give that number, IMHO.  You make the assumption that rates will be the same the next 20 years.  Or 30, or 6931 and nine and a half months.


 
In the current state of interest rates, it's a true statement.
 
Sadly, most people aren't proactive about doing something, anything productive with their money.  They need to be pushed.  They need to be motivated. 
 
Telling someone that their current path will take thousands of years to double their money might cause them to actually do something.  No one here knows what the future will bring.  Sure interest rates will eventually go up, but inaction until then doesn't help their cause.
Dec 28, 2009 9:07 am

I'm more concerned with the return of my money than the return on my money- - Mark Twain.

 
This explains public mindset at the moment. One would be wise to understand this.
Dec 28, 2009 9:20 am

Individuals with cash to invest in the stock market, as measured by the S&P 500, on January 1 ,2000 would have been better off stuffing the dough in their matress. That's 10 lost years.