Investing

IRR vs. ARR: What’s the Difference?

November 19, 2022 By Cade Hildreth Leave a Comment

Key Takeaways

ARR is formula that calculates the annual percentage rate of return expected from an investment, compared to its initial cost.
ARR is a simple calculation that can be done on the back of a napkin.
IRR is more complex equation that is best calculated with a spreadsheet or calculator.
IRR stands for for Internal Rate of Return. It lets you estimate the future profitability of potential investments.
IRR lets you factor in the time value of money, which ARR does not.
IRR is preferable if you won’t earn cash flow from an investment evenly over time.

Self-Storage Investing: How to Profit from Self-Storage Real Estate

November 8, 2022 By Cade Hildreth Leave a Comment

Why should you get started with self-storage investing? The self-storage market has created solid real estate investment opportunities with an average annual ROI of 16.9% since 2009, according to Forbes. And it’s maintaining strong industry growth despite the pandemic’s economic shake-up.

How do you get started in self-storage investing? There are only three ways to invest in self-storage facilities: buy stock in public self-storage companies, invest with a private equity firm that specializes in self-storage investing, or buy a physical self-storage facility and operate it yourself. [Read more…] about Self-Storage Investing: How to Profit from Self-Storage Real Estate

Why 401K’s Are A Bad Idea

November 1, 2022 By Cade Hildreth 13 Comments

Why is a 401(k) a bad idea? Why don’t rich people use them? And seriously, are they worthy of being called a scam?

There’s more than a few reasons that 401(k)s are a bad idea, including that you give up control of your money, have extremely limited investment options, can’t access your funds until you’re 59.5 or older, are not paid income distributions on your investments, and don’t benefit from them during the most expensive period of your life (child-rearing years).

Did I also mention that your 401k account value may plummet—it happened in 2008 and could happen again. [Read more…] about Why 401K’s Are A Bad Idea

4 Pro Tips for Your First Time Buying Stocks

September 14, 2022 By Cade Hildreth Leave a Comment

Did you know that about 55% of Americans own stocks? If you’re not one of them, it could be that you don’t yet understand the process for investing in them.

After all, few people get shown how to invest in the stock market by their parents. Teachers don’t teach this skill this to you in school. So, you’re left to learn about it yourself. [Read more…] about 4 Pro Tips for Your First Time Buying Stocks

What is Real Estate Syndication? Everything You Need to Know

September 10, 2022 By Cade Hildreth Leave a Comment

Are you interested in real estate investing but unsure of the responsibilities that come with it? Investing in real estate can provide you with a steady income, but it’s a lot of work for one person to manage. If you’re not up for the challenge of being a landlord and the headaches that it carries, then real estate syndication is an opportunity you should consider. [Read more…] about What is Real Estate Syndication? Everything You Need to Know

Investing

Key Takeaways

ARR is formula that calculates the annual percentage rate of return expected from an investment, compared to its initial cost.

ARR is a simple calculation that can be done on the back of a napkin.

IRR is more complex equation that is best calculated with a spreadsheet or calculator.

IRR stands for for Internal Rate of Return. It lets you estimate the future profitability of potential investments.

IRR lets you factor in the time value of money, which ARR does not.

IRR is preferable if you won’t earn cash flow from an investment evenly over time.

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