Renewable bankroll RoR

[Rspeirsmlb]

Here's one for you math guys to peck at.....for someone with a pretty big bankroll....let's say $15k+....go to your bank and there are plenty of different accounts...I ran into one, not a money market acount but an asset management account and it pays along the lines of 5.5%. I get my monthly bank statement and I make roughly $150 a month (on average) just for having my money in there. How could you factor the interest with RoR and EV? Sonny? ZenGrifter? Kasi? Anyone? Do ny of you do this?

[Sonny]

[I thought I'd start this as a new thread since it might have a life of it's own]

There is a formula in the GC archives for a Renewable RoR formula. I don’t think it is publicly available so I am hesitant to reveal any of the math behind it, but it can be used to find your RoR when you are able to add a certain amount of money to your BR at regular intervals. This is perfect for people who have other sources of income, like investments or a job, that can supplement their BR at regularly.

In your case you could keep a certain portion of your BR in the interest-bearing account so that your bankroll is increasing every month (or however long the maturity is). You could then use the added interest to “beef up” your bankroll every month. The additional income from interest could be entered into the RoR formula to see what your long-term RoR is when you include outside investments in your total BR.

It gets a little tricky when your interest starts to compound because you are earning at a varying rate, but it gives you a good idea of how aggressively you can bet your money.

-Sonny-

[InPlay]

Originally Posted by Sonny

[I thought I'd start this as a new thread since it might have a life of it's own]

There is a formula in the GC archives for a Renewable RoR formula. I don’t think it is publicly available so I am hesitant to reveal any of the math behind it, but it can be used to find your RoR when you are able to add a certain amount of money to your BR at regular intervals. This is perfect for people who have other sources of income, like investments or a job, that can supplement their BR at regularly.

In your case you could keep a certain portion of your BR in the interest-bearing account so that your bankroll is increasing every month (or however long the maturity is). You could then use the added interest to “beef up” your bankroll every month. The additional income from interest could be entered into the RoR formula to see what your long-term RoR is when you include outside investments in your total BR.

It gets a little tricky when your interest starts to compound because you are earning at a varying rate, but it gives you a good idea of how aggressively you can bet your money.

-Sonny-

Don't forget to bring in UNCLE SAM into your equation. Everyone is different. Intrest income is taxable.

[EasyRhino]

It's actually pretty easy.

The interest you're going to make per month on a bankroll is probably less than the size of one max bet. This is before taxes (or inflation).

You can effectively ignore the effect of interest on the BR.

[zengrifter]

Originally Posted by EasyRhino

It's actually pretty easy.

The interest you're going to make per month on a bankroll is probably less than the size of one max bet. This is before taxes (or inflation).

You can effectively ignore the effect of interest on the BR.

In this case the interest equals 1/2 max bet or 6u.

Place the BR in the account abd after 5-mos apply for a few $5k casino credit lines. zg