Tools / Calculators
Does the thought of managing your personal finances give you a headache? Do you get overwhelmed just thinking about investing? Investment U is here to help. Our goal is to help you grow your wealth, achieve financial freedom, and live a rich life. We want you to thrive, not just survive.
We’ve provided these financial tools and calculators to remove the guesswork from your finances.
Dividend reinvestment is one of the most powerful wealth-building strategies. This calculator reveals how your portfolio value grows when dividends are reinvested versus not reinvesting them.
Dividend reinvestment plans (DRIPS) allow you to increase the number of shares that you own without paying any new money. The plan automatically buys new shares with every dividend payment. You can sit back and let the power of compounding take over. Reinvesting dividends over the long haul really adds up, helping to exponentially increase the value of your portfolio.
This calculator shows you how compound interest can grow your wealth. Compound interest is one of the most powerful concepts in finance. It takes the interest you earn each year and adds it to your principal so that the balance doesn’t simply grow; it grows exponentially.
You simply plug in your principal investment, any annual additions, how many years it has to grow, and the interest rate. The calculator then shows you the future value of your initial investment, and displays the growth on a graph.
Growing your money without the burden of taxes can be a powerful strategy. In a tax-deferred account, like an IRA or 401(k), earnings from interest, capital gains or dividends grow tax-free until withdrawals are made.
Tax-free growth has its benefits, including compounding returns free from Uncle Sam’s hands. Of course, you will pay taxes eventually, but withdrawals are normally made when investors are earning little or no income and are taxed at a lower rate.
Our mutual fund calculator will help you visualize your investment goals. You can see how many years it will take to reach your magic number by inputting percentages like average rate of return, inflation rate, and tax rate to increase precision.
Getting to your magic number might seem hard, but it requires no magic at all. It takes dedication to saving as you go, coupled with reinvesting and compounding. Our calculator will help you decide what you need to put away each year and what type of return rate you need to aim for along the way.
Position sizing is crucial to managing risk. Without it, a single unfortunate trade can destroy your whole portfolio. Our calculator will help you choose the proper number of shares to buy or sell in order to maximize your return and limit your risk.
It’s a good policy stop stocks falling more than 25% below the purchase price without selling it. That’s why we often recommend a 25% trailing stop. That way if you take a maximum loss of 25% on your maximum position size of 4%, the value of your portfolio has fallen only 1%.