# Tag Info

Accepted

### Rate of return on an Life Insurance Annuity

your real gain is only 50K. You are correct about the nominal gain in dollars (ignoring inflation). It is \$50,000. This comes out to a 2% rate of return. But that is not totally correct This is ...
• 10.5k

### How to maintain NAV (Net Asset Value) for family fund

This is working fine for tracking purpose, however, now I have a need where multiple family members would invest (add funds) and the NAV is calculated accordingly. Next, when any of the family member ...
• 143k

### Rate of return on an Life Insurance Annuity

See other answers about annuities They are very much an insurance product; you are paying someone to guarantee you an ongoing income no matter what investments are doing, for your entire life and/or ...
• 49.2k

### How to maintain NAV (Net Asset Value) for family fund

I tried to google but all I can find is NAV associated with Mutual Funds only. Well that's essentially what you're creating so that research may be completely appropriate. You will need to separate ...
• 139k

### Rate of return on an Life Insurance Annuity

Other than the math error as base64 illustrated, your intuition is correct. Your actual return starts negative and climbs to 6% the longer you live. It's important to remember that annuities are not ...
• 139k
Accepted

### Money-Weighted Returns calculation clarification

The calculation is bringing all the cash flows to present value to equate them. For example, start the year with \$800 deposited, a further deposit of \$150 at the end of Q1, a withdrawal of \$300 at the ...
• 9,877

### How to deal with multiple IRR and no IRR situation?

The interpretation of the IRR of a series of cash flows is "at what constant interest rate could I invest/borrow the cash flows to end up with the same amount at the end". Yes it is possible ...
• 139k

### Rate of return on an Life Insurance Annuity

I’m in the situation and looking myself. Annuity has the benefit that the money is guaranteed to never run out until the moment you die. In a savings account and drawing out money, you may still have \$...
• 23.5k
1 vote
Accepted

### How can I calculate cumulative rate/gains for retirement fund in a spreadsheet throughout a year?

If you look at gains more frequently then annually, then you compound those gains to come up with an equivalent annual rate. The simplest way to do that is to add 1 to each periodic rate and multiply ...
• 139k
1 vote

### How to Calculate Future Inflation-Adjusted Investment Balance with Monthly Contributions, Annual Interest, and Fees

The recurrence equation for the monthly balance is a[n + 1] = (a[n] + p) (1 + r) where a[0] = s ∴ a[n] = (-p - p r + p (1 + r)^n + p r (1 + r)^n + r (1 + r)^n s)/r where p is monthly ...
• 9,877
1 vote
Accepted

### How can I calculate the time weghted return?

For time-weighted return, you need the value at the time of each cashflow (purchase/sale). You can start with the value either before or after the cashflow, since you can add or subtract the cashflow ...
• 139k
1 vote

### Money-Weighted Returns calculation clarification

Money-weighted return is essentailly the IRR, which answers the question "at what constant interest rate could I borrow outflows/invest inflows and end up with the same amount at the end of the ...
• 139k
1 vote

### What is the difference between Capitalization Rate and Return on Assets?

Cap Rate is a measure of the income versus the price of the property in real estate. Price goes up, cap goes down, and vice versa. Return on Assets is a measure of how effective a company is at using ...

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