Break-even return?

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Mar 4, 2009 6:00 pm

 A person who’s down 30% in their portfolio needs a 43% return to break even.

  What's the formula used to determine that required return? (This is not a trick question. I'm curious as to how to calculate it.)  
Mar 4, 2009 6:02 pm

This can't be serious.  (1 divided by .7) minus 1.

 
Mar 4, 2009 6:12 pm

You want to know something even cooler Borker Boy?

  If you have been taking 5% withdrawals from your account and you lose 30%, you need 85% to get back to even.  It makes 43% look like a dream.