How Much Did You Save in 2014? (Part 2)

With my colleague PK writing about his 2014 savings rate, I thought that I would chime in as well. Using a loose definition of savings, where principal pay down of debt is included in the numerator, I have an after-tax savings rate of 53.42%. Without including principal paydown of debt, my strict savings rate would be 31.76%. A Note on … [Read more...]

Dow Jones Return Calculator

On this page is a calculator for investment returns on the Dow Jones Industrial Average with a unique benefit not found anywhere else - it allows you to estimate the return contribution of dividends reinvested in the index! The Dow Jones Industrial Average Dividends Reinvested Price Calculator (With Inflation Adjustment) Ed: Consider this … [Read more...]

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...]

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...]

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...]

Is the NASDAQ Back to Its Record High Yet? (2015 Edition)

If Yahoo! Finance can be believed (yes), then the NASDAQ is approaching its all-time closing high of 5048.62, which it reached on March 10th, 2000.  However, that doesn't really tell the whole story - the last fifteen years have been filled with dividend payments making today look 'better'... but have also been filled with inflation, making today … [Read more...]

Yet More Retrospectives: Past Stock Contest Picks

I know, you're probably getting sick of these at this point - but what's the point of maintaining a website for 6 years if we don't go back and check out some of the silly/smart claims we made in the past?  Also, this will be the last one for a while, at least until we talk about our savings rate around tax time: a retrospective looking at how … [Read more...]

More Retrospective: My Performance vs. the S&P 500

I've been an investor for a while now, but I bought my first individual stocks on 3/3/2009 - fortuitously (through luck or skill or otherwise), just 6 days before the market's ultimate bottom.  Those purchases were very successful, and all proceeded to beat the broader S&P 500 rally from that point. Over the last 18 months or so, the … [Read more...]

A Retrospective – Our Stock Contest Performance in 2014

Since we gave you the justification for our picks on Monday, we also wanted to talk a bit about our trolling picks from last year - which earned us a rule named after us in the Financial Uproar Stock Picking Contest - namely, that any ETFs purchased had to be derived from stocks. Yes, we were winning through September - but since there is no way … [Read more...]