The 10yr Rule

The theory is that every ten years your investment doubles in value, and now I have proof!

So I haven’t exactly been actively investing in the stock market for ten years, but unbeknownst to me just under ten years ago my Grandfather took out an Educational IRA (much like a 529 plan) on my behalf, at the time he invested $400 in an American Century fund and set it up with a DRIP (Dividend Reinvestment Program)… Now ten years later, even though the fund has dropped significantly in value, his original investment is now worth $903 thanks to that DRIP. Pretty cool.

Now the 10 year rule is a nice thought, but I’m sure it doesn’t always apply. And in todays market, it hard to imagine any investment doubling in value.