How to Calculate How Much you are Really Making on Your Investments
You might think you are making 18%? How about 7.5%? this actually happened to someone who e-mailed me a couple of months ago, he thought he was making 18%, when in reality he was making much less than that. How come? Because monthly statements are confusing and because the real return is found out only when you calculate what is called a “weighted average”. For example, if you have $25,000 dollars at 4%, $6,000 at 6% and $10,000 making 18%, how much are you really making? This makes a total invested of $41,000. The formula is: multiply each fund by...
