For example, say you invest in a fund that historically provides an 8% nominal rate of return. However, the fund has a 0.5% management fee, and inflation is 3%. Therefore, you subtract 3.5% of the ...

Explore the benefits and types of cash investments. These safe, short-term options offer interest returns and are ideal for ...

Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...

Giselle M. Cancio has over 10 years of editorial experience and content development in personal finance, education, travel, and sports. Her work has been published on NerdWallet, the Associated Press, ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

Have you ever looked at your rate of return and wondered how to interpret it? How do you know whether your portfolio performance is good, bad, or somewhere in between? And how do you go about ...

Everyone loves seeing growth in their portfolio. However, a good year of investing doesn't necessarily indicate a sound long-term investment strategy. Generating sufficient retirement income means ...

A hurdle rate is the minimum acceptable rate of return an investor expects from an investment, accounting for all associated risks. It serves as a benchmark for determining the viability of a project ...

The Forward Rate of Return (FRR) was popularized by noted Investment Manager Donald Yacktman. The whole purpose of stock investing is balance the present rate of return, i.e., the dividend (if any) I ...