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?
Renewable bankroll RoR
- Thread starter Rspeirsmlb
- Start date
[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-
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-
