financial_advice
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| - What is a quick way to figure out how long it would take to double your money given a particular rate of return? For example, how would I quickly figure out how long it would take to double my money given the rate of return is 7% per year? (Hint: answer has something to do with the number 72) | - What is a quick way to figure out how long it would take to double your money given a particular rate of return? For example, how would I quickly figure out how long it would take to double my money given the rate of return is 7% per year? (Hint: answer has something to do with the number 72) | ||
| - You are given the choice of 2 investments. One is expected to return 10% per year, while the other returns 9.5%. Because of the better rate of return for the first investment, the manager of that investment charges a small 1.25% fee on the amount of money that he is managing. Over 40 years, which investment should you choose? What is the difference? Why? | - You are given the choice of 2 investments. One is expected to return 10% per year, while the other returns 9.5%. Because of the better rate of return for the first investment, the manager of that investment charges a small 1.25% fee on the amount of money that he is managing. Over 40 years, which investment should you choose? What is the difference? Why? | ||
| - | - A measure of the performance of the stock market is the S&P 500 index. You can get this performance simply by investing in a index fund or exchange traded fund that tracks the performance of the S&P 500. If you did, based on history, you would get about 10% return. Professional money managers need to outperform the performance of the S&P 500 to be considered any good. Warren Buffet has managed to do this. Some questions: | + | - A measure of the performance of the stock market is the S&P 500 index. You can get this performance simply by investing in a index fund or exchange traded fund that tracks the performance of the S&P 500. If you did, based on history, you would get about 10% return. Professional money managers need to outperform the performance of the S&P 500 to be considered any good. Warren Buffet has managed to do this year after year. Some questions: |
| - How much has Warren Buffet out performed the S&P 500 by? | - How much has Warren Buffet out performed the S&P 500 by? | ||
| - What percentage of portfolio money managers beat the performance of the S&P 500? What does this tell you about investing? | - What percentage of portfolio money managers beat the performance of the S&P 500? What does this tell you about investing? | ||
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| Good luck! | Good luck! | ||
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