"Rate of Return: The Magic Number That Makes or Breaks Your Wealth"

If You Don’t Know Your Rate of Return, You’re Flying Blind

Let’s play a game.

Would you rather:
A) Earn 8% on your investments every year?
B) Earn 3%?
C) Earn 0.01% and call it a “smart financial decision”?

If you picked C, we need to talk.  Seriously, go to "Call To Action" page and set up an appointment!!

Most people have NO IDEA what their money is actually earning, and that’s a problem. If you don’t know your rate of return, you might be sitting in the financial slow lane while everyone else is cruising toward millionaire status.

Let’s break it down.

What is Rate of Return?

Rate of return (RoR) is just a fancy way of asking: How much money is your money making?

• If your investment grows 10% per year, that means every $1,000 you invest turns into $1,100 after a year.

• If you invest in something terrible that grows 2% per year, that same $1,000 becomes $1,020.

Not exactly life-changing.

Why It Matters (A Lot)

Inflation (a.k.a. the reason your grandpa could buy a burger for 25 cents) averages 3% per year. That means if your money isn’t earning at least that, it’s losing value.

• Savings Account at a Big Bank: 0.01% return → You’re actually losing money.

• High-Yield Savings Account: 3-5% return → Keeping up with inflation, but not growing wealth.

• Stock Market (Index Funds & ETFs): 7-10% return → Where long-term wealth is built.

Moral of the Story:

🚨 Do NOT let your money sit in a regular savings account earning 0.01%. 🚨
If you need cash for emergencies, put it in a high-yield savings account (HYSA) that earns 3-5% instead. Anything beyond that? Invest it so it actually grows.

How to Find Out Your Rate of Return

Check your investment statements (yes, the ones you ignore). Look for “Annualized Return”—that’s your magic number. If it’s below 7%, you might need to rethink where your money is parked.

Where to Move Your Money Instead:

✔ Emergency Fund? → High-Yield Savings Account (HYSA) (3-5% return)
✔ Long-Term Wealth? → S&P 500 Index Fund or ETFs (7-10% return)
✔ Still Holding Cash in a Big Bank? → They’re getting rich off your deposits. Move it.

Final Thought:

If your money isn’t growing, it’s shrinking. Know your rate of return, stop letting banks rob you with 0.01% interest, and make your future self proud.

Got questions?  Go to the "Call to Action" Page and set up an appointment.