Why Your Rate of Return Doesn’t Matter – Jerry Fetta

In this Show

Rate of return on your investments does not mean a thing! It’s all about income and only about income. What do you pay your bills with? Money! Not percentages!

The only thing that matters about your investments are the money they produce, the rate of return is inconsequential. Secondly, there are so many different variations and measurements of rate of return that it can be extremely difficult to determine if it is correct or if it actually has accuracy.

In this video Jerry Fetta looks at two investments, the first one has a 24% rate of return, and the second has an 11% rate of return. Which one would you invest on? Comment below.

Find out more below about Jerry Fetta and his successful business, WealthX.

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  • Chris S

    “Rate of return on your investments does not mean a thing!”

    Click bait.

    Try telling that to all the investors in Uncle G’s RE investments…”Hey Investor, NO checks the last (three months, quarter, year, etc.) since ROI just doesn’t matter. We’ll just hold onto your $5M another few years and then only return the principle – NO interest, NO appreciation, NOTHING.”

    No return, no business…good luck with that.


  • Todd Morgan

    “Rate of Return” has no meaning in Finance. Also the term “Yield” without context has no meaning either.

    When referring to the Capital Markets (Stocks & Bonds) Use the term “CAGR:” Compound Annual Growth Rate – takes in both up years and down years as measured over some time period.

    Or when referring to Corporate Finance use the term: “IRR:” Internal Rate of Return, which includes all cash flows, both positive and negative against a “Hurdle Rate” or “Discount Rate” or “Cost of Capital” is easily measured and is used by every venture or corporation on the planet regardless of industry to make investment or CapEx decisions.

    I applaud your efforts but don’t embarrass yourself.