Investing's rule-of-40


Malcolm Hamilton, an actuary and pension consultant with William M. Mercer Ltd., in the Introduction to Jonathan Chevreau's The Wealthy Boomer, provides this handy "rule of 40":

Take 40. Divide by your mutual fund's MER. And presto, you've got the number of years it takes management expenses to consume one-third of your investment.
Now if you think that's painful then don't even think about pressing here. (Remember, you were warned!)


[Home | Back | Forward | Archive | ContactUs | Disclaimer | Glossary | Links | Search]