Sentences with phrase «compound return»

All that matters is the average cumulative compound return of your asset no matter what's the sequence of the returns.

Adding to your super can be tax - effective and because the money is locked away until you retire, you will reap the benefits of compounding returns over time.

You will also lose the benefit of compounding returns on those lost dollars for decades to come.

The above chart assumes a hypothetical 6 % annual compound return on contributions.

It is true that there is a time value to money and you would technically lose years of compounding returns from a major correction.

Over the entire century, high - grade corporate bonds offered an incremental 0.5 % of compounded return as a default risk premium.

You accumulate more years of savings, which then earn compound returns, meaning the returns on your investments themselves earn returns.

Our goal is to acquire, own and operate best - in - class businesses which will enable us to generate strong long - term compound returns without taking undue risk.

Like content marketing, SEO is relatively inexpensive to execute, straightforward in its concept, and it offers compounding returns over time.

Over time, your investment can grow through compounding returns.

Higher values in this measure will highlight those screens with good compound returns and lower variability of returns.

To start, I've decided that I'm only interested in opportunities that have a chance of providing a 15 % compounded return into the future.

And once you do, the magic of compounding returns does the rest.

For one thing, they don't pay interest or dividends, so you won't be compounding returns between purchase and withdrawal.

You are far better off paying more later because that means you get to acquire more gain - producing goodness earlier in life and thus you will enjoy more compounding return magic.

But here's an interesting comparison: For the 15 years ended in 2014, the hypothetical compound return based on the company's database was 8.1 %.

There is a specific investment style that takes full advantage of the unique math behind compound returns.

When evaluating potential investments, it's important to consider potential compound returns not just potential average returns.

Indeed, the period starting in 1928 was one of only nine that produced compound returns less than 10 %.

In an environment like this, dividends can be an investor's best friend, especially if the payouts are rolled back into more share ownership, thus compounding returns over the long term.

These are the best kinds of opportunities because they allow one to compound returns uninterrupted for years, even decades in some cases.

And the longer you can invest, the more time you'll have to watch the power of compounding returns work its magic.

That annual compound return figure is, however, misleading.

Over these time spans, the dreamy miracle of compounding returns turns into a nightmare when it comes time to spend those returns on something in the real world.

Only in this case would your 30 % compounding return beat the average return of the 50 - 50 asset allocation model.

Let's compare two funds producing the same 6 % average annual compound return before fees: a mutual fund with 2 % annual fees and an ETF with 0.2 % annual fees.

In our case, we used compound returns throughout.

It's cost - efficient, scalable, digital, and offers compounding returns over time.

The graph below shows the annual compound return to four groups of stocks in the 37 years to 2010.

Keep in mind that the typical bear market loss averages about 30 %, but even moderate losses can do a lot of damage to long - term compound returns.

SEO also offers compounding returns, compared to advertising, which offers reasonable, yet linear growth patterns.

And even all that doesn't count what I will gain from decades of compounding returns on the differential.

Over time, your investment can grow through compounding returns.

This leads to reduced portfolio volatility and better compound returns.

First, Portfolio 5's increase in compound return over Portfolio 4 was very small, but over 47 years that tiny step produced an additional $ 600,000 or so.

The 25 - year compound return for the diversified portfolio was 17.1 %, and 17.2 % for the S&P 500.

But when Carhart included zombie funds, the average compound return for stock funds dropped more than a percentage point, to 9.5 %.

You'll learn how Michael Marcus ensured a 2,500-fold return in just 10 years; how Bruce Kovner went about creating a 87 % annualized compounded return in the course of a decade; how Paul Tudor Jones made triple - digit percentage returns five years in a row; and loads more.

Many people tout the virtues of stock investing, especially because history shows that the stock market has provided one of the greatest sources of long - term wealth, with compounded returns averaging 10 percent per year over the past 100 years.

In fact, over a 10 year period the market has given an average compounded return as high as 13 % per annum.

The key takeaway from this scenario is that an incremental investment of $ 80,000 while in your 40s would add over $ 200,000 in additional compounded returns by retirement time.

Why financial systems eventually fail at compounding returns at rates of growth significantly above the growth rate of GDP.

In most cases I've looked at, if g is more than 2 % or 3 %, expected compound returns drop.

For example, if you are 25 years old and begin saving $ 50 per month until the age of retirement, it will produce $ 162,000 by the time most people retire at 65 years old, assuming an average monthly compounded return on investment of eight percent.

Across all 16 countries, real compounded returns for equities ranged from 2.5 % to 7.6 %, and standard deviations ranged from 17 % to 32 %.

If we can avoid capital losses in the near term and then buy investment - worthy assets after they have dropped in price and offer much less capital risk and much higher income yields again, then there is hope for higher compound returns for many years thereafter.

The key takeaway from this scenario is that an incremental investment of $ 60,000 while in your 30s would add over $ 300,000 in additional compounded returns by retirement time, resulting in a total retirement fund of $ 2.0 million (flat out scenario) versus $ 1.6 million (ramp up scenario).

Inflation is a prominent player in any evaluation of investing over time, because inflation is a time - dependent process just like compound returns and market gyrations.