72-Year Rule

The Failure of the Unfree Market
http://www.americanthinker.com/printpage/?url=http://www.americanthinker.com/2010/05/the_failure_of_the_unfree_mark.html

What we have here is the failure of the unfree market. That means the failure of Greece. And the other PIGS (Portugal, Italy, Greece, Spain). And Europe. And it means the U.S., too. It even includes the Great Recession. The modern welfare state is collapsing around us.


If you had believed in the 72-Year Rule, you would have seen this coming. The 72-Year Rule says the lifetime of any social order or governing paradigm is about 72 years. For example, how long was it from the adoption of our original Constitution (1789), which sanctioned slavery, to the Civil War (1861)? Call it 72 years. And from then until the New Deal in 1933? Another 72 years. How about from the Bolshevik Revolution (1917) to the fall of the Berlin Wall (1989)? That would be 72 years again.


Do you know when the first Social Security check was issued? January 31, 1940. If my guess is right, Social Security has maybe two more years left.


Generally, the modern welfare states were born in the 1930s. So the 72-Year Rule says the modern welfare states will collapse and/or turn into something else in the 2002-2012 time frame.


Kinda makes you believe in the 72-Year Rule, doesn't it?

ianadds wrote:Kinda makes you believe in the 72-Year Rule, doesn't it?

Yes it does.

Suppose at age 37 you start saving for retirement. We choose a reasonable sum of 110 dollars a month. In 7 years you notice that you have accumulated 13,200 dollars. Another 7 years go by and you see that you have nearly $40,000. At the end of 21 years you have $93,000. By age 65 you notice that 28 years have gone by and you have $200,000 dollars. The rate of return kept steadily increasing. Those of you with some mathematical leanings will recognize this as an exponential rate and also as compound interest. This website has a good calculator

Also notice that 28 represents four 7-year spans, time for the first dollars to double four times. Observe that during the first 7-year period you accumulated $13,000, during the 2nd 7-year period $27,000, during the 3rd 7-year period $43,000 and during the 4th period $107,000. During the 4th period you grew eight times as much as in the first period. All without changing the amount saved, $110 per month.

You think to yourself "I wish I could have twice as much". You may have figured out where this is going. Just START 7 YEARS EARLIER. Now at the end of 35 years you have $414,000, just for starting sooner. And if you start another 7 years earlier, imagine, $846,000. You accumulate $214,000 during the fifth 7-year period and $432,000 during the sixth 7-year period. Sixteen times and thirty-two times the amount in the first 7-year period. All for the same 110 dollars a month!

Yes, I know. This would require beginning saving at age 23, a very difficult thing to do. I also realize that those people with marginal incomes just don't have money to save and also that younger people usual have lower earnings power and incomes. I'm trying to make the point that to whatever extent you can follow this start-early concept it will pay off handsomely by the time you reach retirement.
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72 year rule is also spoken of by armstrong..it a living thing