Is Your Money Really Working for You? A Math Lesson in Rates of Return

Getting a high average rate of return does not necessarily equate to actual money in our pocket. A personal finance expert explains why math doesn’t equal money.

A female investor uses a calculator to figure out the rates of return on her investments.
(Image credit: Getty Images)

Given the decades-long market upswing followed by the recent downturn, you may have questions about if your money is really working for you. For instance, is it possible to make an average 25% rate of return and still not make any money? The answer is “YES!” Hang with me for a math lesson in rates of return.

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Kyle Winkfield
President, Finley Alexander Wealth Management

Kyle Winkfield, president of Finley Alexander Wealth Management, is a breath of fresh air to the financial industry, empowering clients and public audiences through education and straight-forward concepts. Personal finance is a topic that unnerves many Americans and the barrage of industry jargon and fast talk leaves most uncertain about what is best for them and their families. A portfolio is not a plan, and what sets Kyle’s clients apart from the rest is they have a written plan for retirement achieving financial freedom and lifestyle security.