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The Compound Annual Growth Rate (CAGR) is the compound discount rate which an investor would have to get to go from a present value to a future value.
The compound annual growth rate can be computed using the ending value of an investment and taking the Nth root of it for the number of compounding periods (usually years). The idea is to have a smoothed average number that an initial would have to have received in a compounding investment to end up at the future value.
Average annual return is sometimes confused for CAGR, but it is typically computed by actually taking the average of the rates earned from year to year, which does not take compounding into account and is not accurate. Advisors should always use the CAGR for accurate results, and solve for inflation when possible to get Real Return.
If you start to take benefits while working and before the normal retirement age, your benefit will be reduced
Social Security uses a formula to apply your average monthly income from the 35 years in which you earned the most
401(k) plans typically allow loans to be taken, so that investors don’t have to pay taxes or an early-withdrawal penalty
A Revocable Trust is also known as a Living Trust, and it is an estate planning vehicle that allows you to determine...
The Price to Earnings ratio is a company’s stock price relative to its net income per share
Collateral is an asset/property that a borrower commits to a lender, which will be forfeited if the borrower defaults
The Federal Home Loan Bank Act of 1932 established the FHL Bank system, which is a co-operative banking network
Chapter 10 is a bankruptcy filing available to smaller corporations where they agree to have their management replaced
The Falling Wedge pattern forms when prices appear to spiral downward, with lower lows and lower highs
Once you have acquired bitcoin, you will want to make sure that you store it in a secure fashion that suits your taste and needs