A 25% return on investment (ROI) is considered excellent and well above average. It significantly beats the typical 10 % 1 0 % average annual return of the S&P 500. While a "good" return is often deemed to be around 7%–10% (inflation-adjusted), a 25% return suggests high profitability, though it often comes with higher risk or shorter-term gains.
A CAGR of 25% is very high, but may real estate investments (syndicate funds) have IRRs in the 20--25% range, and this very good, but not crazy high. Also is it 25% net of fees and taxes, etc? Generally speaking, a CAGR of 25% is too good to be true, especially over an extended period of time.
Yes, as long as the money is reasonably invested and your goals don't change, 25% is enough. I would further say, that 25% for several years while you are young will probably allow for goals to change somewhat down the line if you do change your mind about any of the factors above.
So in a nutshell, my opinion is that you would be fortunate to average around 7-8% rate of return over a long-term basis. There will be periods in which you get a 20% rate of return. These are the great times. But there will also be times in which you are getting a -15% rate of return.
A 30% annualized return is a stunning good return, better than almost all other investors (pros included) if sustained over the years. Since you have only been trading a short time you might want to consider whether such a return is attributable to skill, to a bull market, to luck, or a combination of those factors.
What is a good ROI? When it comes to your own stocks, anywhere from 7 to 10% is usually considered a good ROI for long-term investors. However much we would like a 20%, 30% or even 40% return, it's pretty significant in the world of investing.
Return on Stocks: On average, an ROI of 7% after inflation is often considered good, based on the historical returns of the market. Return on Bonds: For bonds, a good ROI is typically around 4-6%. Return on Gold: For gold investments, an ROI of more than 5% is seen as favorable.
The 70/20/10 rule in investing refers to two main concepts: a personal budgeting guideline (70% spending, 20% saving/investing, 10% debt/giving) and a portfolio risk allocation (70% low-risk, 20% medium-risk, 10% high-risk), both designed to balance immediate needs with long-term growth and security. It's a flexible framework, adapting to rising costs, that helps manage money by prioritizing essentials, future wealth, and extra financial goals like debt reduction or charity.
A good return on investment is generally considered to be around 7% per year, based on the average historic return of the S&P 500 index, adjusted for inflation. The average return of the U.S. stock market is around 10% per year, adjusted for inflation, dating back to the late 1920s.
The "15-15 rule" primarily refers to treating low blood sugar (hypoglycemia) by consuming 15 grams of fast-acting carbohydrates, waiting 15 minutes, and then rechecking blood sugar; repeat if still low, then follow with a balanced snack. Less commonly, it can refer to an investment principle: investing ₹15,000 monthly in a mutual fund at a 15% return for 15 years to potentially become a crorepati (millionaire).
The 3-6-9 rule in finance is a guideline for building an emergency fund, suggesting you save 3 months of essential expenses for stable jobs, 6 months for most people (especially those with families/mortgages), and 9 months for those with irregular income (freelancers, sole earners) or high financial risk. It's a flexible strategy to provide financial security, helping you avoid debt or panic withdrawals during unexpected job loss or emergencies, with the exact target depending on your income stability and dependents.
We can also offer a simple guideline, one that we feel is more sufficient for most people than conventional advice suggests. We recommend our wealth management clients aim to save 25 percent of their gross income each year into long-term investment vehicles.
A good 5-year investment return is generally considered to be 7% to 10% annually, aligning with the S&P 500's long-term average, but higher returns are possible in riskier assets like specific stocks or real estate, while lower-risk options like bonds offer less, around 4-6%. The ideal return depends on your risk tolerance, with higher potential gains (e.g., 10%+ in real estate/growth stocks) coming with greater volatility, while a 7% inflation-adjusted return is a solid benchmark for diversified portfolios.
Warren Buffett's 90/10 strategy involves allocating 90% of assets to a low-cost S&P 500 index fund and 10% to short-term government bonds. The 90/10 rule offers simplicity, lower fees, and the potential for higher returns.
This is where following the 40/30/30 rule comes in—and don't worry, it's pretty straightforward: “The idea is to aim for 40 percent carbohydrates, 30 percent protein, and 30 percent fat per meal,” Quintero says. “It's based on an ideal balance of macronutrients.”
While the term good is subjective, many professionals consider a good ROI to be 10.5% or greater for investments in stocks. This number is the standard because it's the average return of the S&P 500 , an index that serves as a benchmark of the overall performance of the U.S. stock market.