Tag: compound interest

Things Are Not As They Seem To Be


Facts are difficult things to get a handle on. Think a little deeper.

Know The Context of Your Choices


Linear growth projections hurt your chances.

Compound Interest Is Different


No one gets compound interest right without
arithmetic.

Better Investment Performance Can Easily Fund CPP Improvements


What you don’t make with earnings, you must get from capital

Without Care, Average Rates of Return Don’t Mean Anything


Easy arithmetic is misleading.

Why Tax Alpha Matters


Who bested who in the Manhattan Sale? In 1626, Dutch settlers, led by Peter Minuit, bought Manhattan Island from the Canarsie first nation for $24.  Is this a case of the Dutch taking advantage of the aboriginals or the aboriginals taking advantage of the… Continue Reading “Why Tax Alpha Matters”

The Rule of 72 and The Rule of 116


Someone asked why the rule of 72 works and as an approximation, how good is it? Both questions are fairly easy to solve with a spreadsheet.  I doubt they were so easy 40 years ago.  Here’s how you think about it. The question is:… Continue Reading “The Rule of 72 and The Rule of 116”

More On The Dow At 1,000,000


Of interest to those who misunderstand exponential growth. Two days ago I made the point that if the last 114 years are a guide, then the Dow Jones Industrial Average, with no dividends considered, will be at 1,000,000 by the end of the century,… Continue Reading “More On The Dow At 1,000,000”

Time Matters In Any Plan


Time matters.  It is a part of every plan.  Many of us handle this part badly. Time exists so that everything will not happen at once.  That fact is a problem for many because we have, as a society, lost the ability to be… Continue Reading “Time Matters In Any Plan”

Quiting On The 2-Yard Line


When something takes a long time to work, there is a tendency to adjust, or change, or even to quit, part way into the proceedings.  That works if you establish that what you are doing is wrong.  That fails the rest of the time. … Continue Reading “Quiting On The 2-Yard Line”

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