annualized return

It has been a while since I write about Lending Club. I haven’t written about peer-to-peer lending, because there hasn’t been much to write about except for the chance to win $2,500 from Lending Club. Otherwise, I am still an investor on both Prosper and Lending Club, and I continue to buy more notes when [...]

There are two rules often cited by investors that sound similar but that in fact make very different claims. In this article, I’ll describe the differences between the two rules — the Multiply-by-25 Rule and the 4-Percent Rule.

The Multiply-by-25 Rule
The purpose of The Multiply-by-25 Rule is to tell an investor how much he needs to [...]

If I told you that you could make a 462% annualized return by investing in a water saving shower head, you might tell me to take a hike. With the stock market in the tank, you might be tired of hearing about another investment where you can make huge returns with little or no risk. [...]

On books, web sites, and blogs (including this one) you may have come across references such as the S&P 500 has grown 13% annually for the past 30 years or something to that effect. You may wonder what that means and where did they get that number.
When someone states an annualized return, most likely he [...]

I recently read a post by Personal Finance Advice, Why Getting a Degree Isn’t Always a Sound Financial Decision. I thought it was a well written post that presented a valid point. Do not get me wrong…I am a strong advocate for college education. However, this post did remind me about my college days, and [...]

Here are 6 cool financial math tricks and rules that I know about. These are pretty common, so you may know them already. Take a look. Do you know any of these?
1. Rule of 72 To Double Your Money
The rule says that to find the number of years required to double your investment, you just [...]

Our Social Security system is in crisis. Despite the fact, many people do not give retirement planning enough priority. This is especially true when life is hard — making it difficult to think about and plan for retirement that is 30-40 years away. However, I encourage you to stop putting your future at risk, review [...]

Before I started this blog, I did not really have a good financial goal. Actually, my financial goal was similar to 99.9% of other Americans…I wanted to be rich. But what is rich? In “Are you wealthy? Here’s a test,” I defined wealthy as: “…when income from my assets can cover all my family living [...]

What is an expense ratio? It is a fee that mutual fund companies subtract from your investments each year for their services. Can that small fee have such a big impact? Yes, it’s possible for high expense ratio to eat up 50% of your gain — given enough time, high expense ratio mutual funds [...]