Should You Ignore Inflation in Investment Returns?

No, you shouldn't ignore inflation in stock returns. Well, actually - when you go to pay taxes on a sold investment... you need to ignore inflation when calculating your capital gains.  However, when you're evaluating your investment performance, you better pay attention to how you performed against inflation - considering that simply buying … [Read more...]

Can You Afford a House in These American Cities? A Fun Calculator!

So, you've heard a lot about the booming real estate markets in many American cities.  However, have you ever calculated if you can afford Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, D.C. on your current income and with your current debts? Have no fear - for the first time on the … [Read more...]

Should You Invest in Passively or Actively Managed Funds?

You've probably heard the advice to "invest passively" and "seek funds with lower fees".  But... do you have any idea how much of a difference it makes in terms of money over a career of saving? Today's your lucky day.  We've got a site we like to keep populated with this sort of information - so read on! Passive vs. Active Management John … [Read more...]

The DQYDJ Weekender, 3/7/2015

It's March? Seriously?  Well, at least I've gotten used to writing 2015. Links We Liked! Megan McArdle has a deep dive on how the cost of living has changed over time - including in some very eye opening ways.  It's not just money that is spent differently. An interesting discussion on cutting mutual fund fees versus saving more for the … [Read more...]

Is Increased Savings Good or Bad For the Economy?

In a word, Good. In even more words - the most likely forms your savings will take won't hurt the economy and will probably help it.  You probably don't have to worry that your savings will spike the broader economy. What is Savings? In a boiled-down, simplistic definition - savings is spending less than the amount coming in via cash-flow. … [Read more...]

Net Worth by Age Calculator for the United States

Ever wonder how your net worth stacks up with the rest of your age group in America?  We made a calculator using Federal Reserve data - merely enter your net worth and the age range of the primary earner in the household to see which net worth quantile your net worth puts you in for your age group! Once you select your inputs, we will graph all … [Read more...]

The DQYDJ Weekender, 2/28/2015

Welcome to another rousing Weekender - our recurring special where we send you off our site to other interesting pieces around the web that you may not have seen.  (Come back... promise?) Links We Liked! First, we want to share our friend Robert's (of The College Investor fame) list of top investing blogs.  We're humbled by the inclusion and … [Read more...]

Can an Average Income Person Gain an Incredible Net Worth Through Investing?

Can we expect folks with average or below average incomes to be able to amass a sufficiently large financial nut in retirement? Financial sites like to stress that good decisions over a sufficiently long time lead to very good results. Applied to your retirement, that means small savings sacrifices over a long career compounded at a reasonable … [Read more...]

The Aspirational Class: How Many Accredited Investors Are There in America?

We estimate that 8.25% of all American households - or roughly 10,108,811 households - count as Accredited Investors. (As of 2013, calculated using Federal Reserve SCF microdata). Furthermore, we estimate they hold about 70.28% of all private wealth in this country, or a whopping $45.5 trillion. But, let's back up for a second, for everyone … [Read more...]

The DQYDJ Weekender, 2/21/2015

It's a conspiracy - I was trying to write a new calculator on the Macbook and I got the dreaded "white screen of death" (it's restoring from backup as we speak).  So, yeah, I'm writing this entry on the PC - I've got to be careful or I'll fall back in love with this huge monitor... Links we Liked! At Philosophical Economics - an excellent look … [Read more...]