Inflation Expectations and Yields Take a Turn

This is a series we revisit pretty often because... well, it's so interesting.  As we've pointed out in the past, you can get pretty-much-realtime estimates about the market's inflation expectations by subtracting the yield on inflation adjusted instruments from the yields on treasuries.  That, of course, leaves you with 'expected CPI', which is … [Read more...]

Don’t Take All Your Investing Cues from What’s Popular

Let's have a psychology discussion today. While we're sure that you can find many blogs telling you not to invest in things just because they are currently popular - stocks, real estate, whatever - we want to touch on the emotions that investing can induce, especially in times of volatility - and especially for those of us who try to 'beat' the … [Read more...]

A Periodic Reinvestment Calculator (With Dividends!) for the S&P 500

This article links to a calculator which allows you to run through investment scenarios on the S&P 500 based on historical data. It includes dividends paid, dividend taxes, capital gains taxes, management fees, and inflation. It allows you to modify all tax and fee fields to model custom scenarios, such as investing in tax free accounts or … [Read more...]

Inflation Adjusted Palladium Investment Return Calculator

On this page we present an automatically updating (daily) palladium return calculator. Enter any two dates since April 2nd of 1990, and we will compute the annualized and total returns on money invested in palladium between those two dates. We also will automatically adjust the quoted returns for inflation, optionally, if you choose the "Adjust For … [Read more...]

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

Ed: June is as of 6/25 close, and will be updated with average closes next month. Also! Try our individual stock Graham Number calculator or our individual stock dividend reinvestment 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 … [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...]