What is Return On Investment (ROI)?
Return On Investment (ROI) measures the performance of an investment over a period of time, usually annually. It is also a good way to compare different types of investment on the same scale.
For example, if we have two investments:
Which one is better?
In this case, ROI for B is better than ROI for A.
After you started investing in the stock market for a while, you are probably thinking about diversifying beyond stocks, bonds, and REITs. A common next step for many investors is investing in a rental property. Personally, that is what I did, and as a fairly seasoned real estate investor, I feel that it is important … Read more
The S&P 500 is one of the largest barometers of overall stock market performance available. Most investments use the S&P 500 as the benchmark and compare themselves to the S&P 500 performance. What is the S&P 500 growth rate? As you will see below, the number we regularly use on this blog is a 9% … Read more
What is an expense ratio? It is a fee that a mutual fund or ETF subtracts from your total investment each year for their service. Can that small fee have such a significant impact on long-term investment performance? Is it better to invest in low-cost index funds? The answer is a resounding YES because a … Read more
Do you have some money you need to invest for a short period of time? Maybe you’re saving up for a house and want to earn a little bit of return while you build up your down payment. Or you’re planning a big vacation next year but don’t want the money to just sit in … Read more