Average Annual Return vs. Compound Annual Return

Over the weekend, I was asked the difference between average annual return and compounding (or compound annual growth rate). Really, the question was, if I see a fund with a 10% average annual return, is it the same as putting the same amount in a bank account at 10% interest? I was stumped for a […]

Treasury is Selling Mortgage Securities! Time to Buy?

Earlier this week, the Treasury announced that it will begin selling its portfolio of mortgage bonds guaranteed by Fannie Mae and Freddie Mac (also known as agency paper). The sales will start this month, and will be subject to market conditions. It is estimated that selling the holding could result in a profit of as […]

Why do Gas Prices Rise?

If you have been to the pump lately, you may be asking yourself, what is going on with these gas prices? In California, consumers are paying almost $4 a gallon for gas. While this may seem low to Europeans, this is the highest we have ever paid! So, why do gas prices rise? Over the […]

Roth IRA Misconceptions – A Roth IRA Isn’t That Hard To Understand

Hi, I’m Kevin McKee from Thousandaire.com and I’m interrupting your regularly scheduled programming today to give you my biggest financial pet peeve. Robert and I are swapping posts today, so you can head over to my site to read Robert’s pet peeve about The Biggest 401(k) Mistakes You Can Make.   Have you ever heard someone […]

Should a College Student or Recent Grad Buy a House?

I was having an interesting discussion the other day about whether a college student or recent graduate buy a house instead of rent. Prices of houses and condos have gone up lately, but are still affordable in many places, and in some markets, the cost of renting may be about equal to the cost of a […]