Hello Money Friends, this is guest host Andrew Horowitz again from the Discipline Investor

Podcast.

And today I'm Money Girl, my preferred way to make money.

Listen to Paige from San Diego calls in.

I am looking for a good alternative to CDs and money market.

My local bank is offering 2.5% on one of your CDs and one in

the savings account. I need the income to help pay my bills. But these low rates are not

cutting it. What can I do? Thanks for your house and I love your show.

Page, don't you just hate that? 2% on my hard-earned money just isn't going to cut it for me

either. Let's tackle this problem together.

Back in episode 26 of Money Girl, there was a little shortcut discussed which is used in finance

known as the rule of 72.

It states that dividing 72 into the interest rate you are earning will tell you how many years it will take for money to double.

So if you have money invested in an account earning 2% and reinvest the income, it will take 36 years to double.

Yuck! That's not going to get us anywhere fast, especially when inflation is running at 4%

and taxes will take a piece out of it as well. If the bank pays you even as

much as 4%, you still are swimming upstream. Here is the disciplined investors preferred way

of investing for income.

This is a strategy that we use in our client portfolios regularly and offers a great deal of safety

that is designed to help you with your investing sleep factor.

In fact, this idea helps you earn money

while you're sleeping. Now that is my kind of investing. It offers yield approaching

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