UNCOMMON CENTS 72

FOR THIS 'NATIONAL NO-NAME CALLING WEEK' I SELF-IDENTIFY AS A BLACKBERRY ADDICT. I CAN RESIST THAT ELECTRONIC DEVICE FOREIGN TO MY INTELLIGENCE, BUT I CAN'T RESIST THE FAT, BLACK, JUICY, THORNLESS, TASTY FRUIT THAT GROWS ON VINES, THEN MELTS AND JELLS INTO A MOUTH-WATERING SPREAD. I ALSO SELF-IDENTIFY AS A COST CONSCIOUS NUT. IT IS NOT NAME CALLING, HOWEVER, IF I IDENTIFY THOSE WHO DON'T UNDERSTAND THE BENEFITS OF INVESTING AS FOOLISH. FOOLISH CHARACTERIZES ONE WHO DOES NOT UNDERSTAND THE RULE OF 72 IN ECONOMICS. EVEN FOR AN I.Q. CHALLENGED PERSON LIKE MYSELF, THIS RULE OF 72 IS EASY TO COMPREHEND. IT ALLOWS YOU TO DETERMINE HOW LONG IT WILL TAKE FOR MONEY TO DOUBLE AT VARIOUS INTEREST RATES. FOR EXAMPLE, SAY YOU WANT YOUR $1,000 INVESTMENT TO DOUBLE IN 10 YEARS. IN OTHER WORDS, YOU WANT TO KNOW HOW MUCH OF A RETURN WILL ALLOW IT TO DOUBLE IN 10 YEARS. DIVIDE 10 INTO 72. YOU MUST EARN 7.2% ANNUALLY. IF YOU DIVIDE 72 BY 15 (THE NUMBER OF YEARS) YOU WILL ONLY NEED 4.8% ANNUALLY. IMPRESSIVE. HUH? FOOLISHNESS IS NOT EMBARKING ON A LONG TERM INVESTMENT PLAN OR SUBSCRIBING TO ITS FINANCIAL REWARDS.

$24.00 INVESTED IN 1626, THE AMOUNT FOR WHICH THE INDIANS SOLD MANHATTAN, WOULD GROW TO 3.3 TRILLION BY 1996 IF THE INDIANS HAD INVESTED IT AT COMPOUNDING INTEREST OF 7.20% OVER THE YEARS. ON THE OTHER HAND IF THE INDIANS HAS PUT THEIR $24.00 INTO THE BANK AND SPENT THEIR $1.73 INTEREST EARNED EACH YEAR, AFTER 370 YEARS THEY WOULD STILL HAVE $24.00 AND WOULD HAVE SPENT $640.00 IN INTEREST. SAD. HUH?

HINT: STOP BEING A 'DUMMY' THIS WEEK; GET 'SMART.' PUT ASIDE THE PRICE OF A NEW TV TO WATCH EITHER THE SUPER BOWL OR THE ACADEMY AWARDS. THE WINNERS WILL BE JUST AS VISIBLE ON THE SET YOU OWN RIGHT NOW, BUT YOU WON'T BE A LOSER.