United Kingdom  

Celebrating 10 Years of Trusted News Discovery
One News Page
> >

What Is Total Return?

Video Credit: The Street - Duration: 02:01s - Published < > Embed
What Is Total Return?

What Is Total Return?

What is total return?

You hear that term all the time, but how is it any different from just regular old return on investment?

Well total return accounts for not only how much the price of your asset went up, but also how much income the asset yielded you while you were holding it.

Before we get into the teeth of this, and trust us -- you're going to get there so fast - let's relate this to something you're probably familiar with.

You just bought your first home (or you're planning to - congratulations).

You paid $300,000 to own the home (yes, you borrowed money and didn't put down $300, but let's keep this simple).

The home's value increases to $500,000 ten years later.

But you took your vacations, left town, and left your house a bunch.

While you did that you rented out your home to people.

People rented for a collective 6 months over those 10 years and paid $4,000 a month.

$4,000 times 6 is $24,000 bucks.

So let's say in year ten you sell your house for $500,000.

$500,000 + $24,000 = $524,000.

$524,000 minus $300,000 equals your profit of $224,000.

That's a total return of 74%.

Pretty good.

$224,000 divided by $300,000 equals 74%.

Watch the video to see how that works when you buy stocks.

Premium Pick: Jim Cramer: Playing Hostage/Non-Hostage on China-Exposed Stocks Trading Strategies: A Lookahead to the Fed, Stocks to Watch and CVS Bull Marker Fantasy: Stocks Versus Stats: Netflix or Green Bay Packers Quarterback Aaron Rodgers?

Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud Catch Up: Today's Top News Videos Below

0
shares
ShareTweetSavePostSend
 

Recent related news from verified sources

Alisson cleared to face Man Utd – but Liverpool set one condition

Alisson has missed 11 games in total since hurting his calf on the opening day - but it seems he's...
Team Talk - Published


You Might Like


Recent related videos from verified sources

Airport smugglers arrested after police find suitcases full of exotic snakes and lizards following a flight [Video]Airport smugglers arrested after police find suitcases full of exotic snakes and lizards following a flight

Airport workers were baffled after they discovered passengers had smuggled two suitcases full of exotic snakes and lizards onto a flight. A total of 16 reptiles were seized by customs after being found..

Credit: SWNS STUDIO     Duration: 04:03Published

Hy-Vee Athlete of the Week: North Kansas City's Brandon Hall is Mr. Do-Everything [Video]Hy-Vee Athlete of the Week: North Kansas City's Brandon Hall is Mr. Do-Everything

North Kansas City senior wide receiver Brandon Hall played an incredibly efficient and productive football game last Friday. Hall had five total touchdowns: three rushing, one receiving and a 77-yard..

Credit: Rumble     Duration: 01:46Published

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.