I see. It's not your fault for mistyping since it was my responsibility to effectively read your mind. My bad.
So you aren't going to be gracious like I was with your error. OK.
Yes I do. Good catch. Thank you for spotting that. My error was computing 1.1239*20 instead of 1.1239^20. The correct end value is $227,497 and not the $494,516.00 figure I previously listed. Thanks again.
You're welcome.
With money in a different account. Remember, the topic is comparing investment options.
The topic is paying for electricity over time vs paying a lump sum for solar panels.
If you don't pay for your electricity then you aren't comparing apples to apples.
That's incorrect. You simply calculate the Net Present Value for each investment using the same projected inflation rate.
Cheating seems to be all you can do when it comes to this.
In once scenario $22,000 was used to pay for 20-25 years of electricity and in the other scenario, you don't use any of that money to pay for electricity.
The topic is paying for electricity over time vs paying a lump sum for solar panels. In order to be a valid comparison, both scenarios have to pay for the electricity.
It won't cost me anything. My internet connectivity is a sunk cost that does not get factored into any investment opportunity (unless I want it to for some reason).
It does cost you money. With $22,000 you aren't buying all 500 of the stocks in the S&P so you clearly won't be matching the growth of the S&P. If you buy an ETF it has a management fee of about .09% - .18%. If you buy mutual funds that are actively managed they will cost 1-2% or more.
You have to understand the market return is based on holding the stocks at the end of day since it doesn't factor in the cost or price variation that happens during the day.
If you buy a stock on Dec 31 for $100 and it closes at $101, you will beat the market's declared rate of return for that stock the next year. If you buy the stock for $101 on Dec 31 and it closes at $100 then you will not beat the market's declared rate of return for the next year.
Then you have to understand that paying zero for commissions is not really the best way to maximize your return and it does cost you when making trades because you are likely not getting the best price.
It is interesting that you think you can buy, sell and own real estate with no cost to you. Can you explain that to us? We could all use a good laugh.
All return is real return. There is no such thing as imaginary return, except perhaps Safemoon "reflections."
Thanks for the laugh.
https://www.investopedia.com/terms/r/realrateofreturn.asp
https://www.wallstreetmojo.com/real-rate-of-return-formula/
In all cases, you simply calculate the Net Present Value for each investment using the same projected inflation rate.
Let me know if you have any other questions.
As long as you use the same inflation rate then you are calculating the same real return.
Let me know if you have any other stupid comments to make.