"What's the return on your investments?"
A simple question that isn't always easy to answer (at least correctly).
Measuring and tracking the return of your investments is one thing you should always do to make good investment decisions. Still, many investors, portfolio trackers and even brokers (I won't point fingers) calculate it incorrectly.
In this post, I will go step by step through simple examples to show you why some commonly used metrics don't work and which ones to use instead.
In this guide, I will show you step-by-step how to start with investing if you are an EU citizen. I will show you how to start by passively investing in the global stock and bond market using ETFs. Passive investing is a great way to start because it offers great results (in the past 50 years global stock market grew around 11% annually) with minimum effort and time. It only takes few minutes each month to make the trades.