147 - How to Best Track Investment Returns
Scott and James discuss how to best track investment returns.
Listener Question
Does it make sense to track my investments in my 401K and Roth IRA purely off of the projected rate of return that people suggest (typically between 7-10%) or should I track my investments based on the inflation-adjusted return rate? I am asking this as a 23 year old, who sees a million dollars as a very attainable goal with a Roth and/or 401K but when you factor in inflation each year at say 3% that million dollars seems more challenging to accomplish.
Should I track my portfolio values off of this “standard” 7-10% growth rate or should I take a more conservative approach and track them off of a (4-7%) growth rate so that I can have a better understanding of what I am on track for?
Planning Points Discussed
- Utilizing Time Efficiently
- Capital Appreciation
- Purchasing Power
- Other issues (IRAs, Inflation, Financial Goals, etc.)
Timestamps:
3:54 - Nominal v. Real Returns
6:37 - Investment Growth Example
9:35 - Inflation Protection
11:46 - Importance of Real Return
13:51 - Aligning Your Financial Goals
LET'S CONNECT!
James
Facebook LinkedIn Website
Scott
Facebook Twitter Website
ENJOY THE SHOW?
Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.
Leave us a review on iTunes.
Have a money question you want us to answer? Submit one here
View all episodes
4.8
386386 ratings
Scott and James discuss how to best track investment returns.
Listener Question
Does it make sense to track my investments in my 401K and Roth IRA purely off of the projected rate of return that people suggest (typically between 7-10%) or should I track my investments based on the inflation-adjusted return rate? I am asking this as a 23 year old, who sees a million dollars as a very attainable goal with a Roth and/or 401K but when you factor in inflation each year at say 3% that million dollars seems more challenging to accomplish.
Should I track my portfolio values off of this “standard” 7-10% growth rate or should I take a more conservative approach and track them off of a (4-7%) growth rate so that I can have a better understanding of what I am on track for?
Planning Points Discussed
- Utilizing Time Efficiently
- Capital Appreciation
- Purchasing Power
- Other issues (IRAs, Inflation, Financial Goals, etc.)
Timestamps:
3:54 - Nominal v. Real Returns
6:37 - Investment Growth Example
9:35 - Inflation Protection
11:46 - Importance of Real Return
13:51 - Aligning Your Financial Goals
LET'S CONNECT!
James
Facebook LinkedIn Website
Scott
Facebook Twitter Website
ENJOY THE SHOW?
Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play.
Leave us a review on iTunes.
Have a money question you want us to answer? Submit one here
More shows like Real Personal Finance
View allMoney Guy Show
2,921 Listeners
Sound Retirement Radio
408 Listeners
Your Money, Your Wealth
691 Listeners
Jill on Money with Jill Schlesinger
1,863 Listeners
The Stacking Benjamins Show
1,897 Listeners
Retirement Answer Man
1,250 Listeners
Retirement Starts Today
471 Listeners
NerdWallet's Smart Money Podcast
616 Listeners
Stay Wealthy Retirement Podcast
498 Listeners
Earn & Invest
397 Listeners
DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing
869 Listeners
Ready For Retirement
662 Listeners
The Personal Finance Podcast
1,203 Listeners
Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)
29 Listeners
Retirement Planning Education, with Andy Panko
591 Listeners