May 2013
Beginner
256 pages
3h 58m
English
Content preview from The Rules of Wealth, 3rd Edition
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RULE 11
Calculate the net return
Now doesn’t that sound boring: ‘calculate the net return’. Well it shouldn’t be boring. Remember, this is about deciding if and when you’re going to get that house or that holiday, when you can afford to give up work, how much you can leave to your kids or give to good causes, what kind of car you’re going to drive. That’s not boring. And the answer to when it’s all going to happen will be affected by whether or not you calculate the net return.
You understand what ‘net’ means of course. But do you remember to factor in the costs, expenses, charges and tax before deciding whether to make an investment? For example, suppose you’re tempted by a headline rate of 6 per cent. That might sound like a pretty good investment. ...
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