Compound Net Annual Rate - CNAR

Uncle Sam is a jerk sometimes. The government tells Americans how important it is to save. So, after years of saving your money in a bank account, letting interest accumulate and building wealth...the government takes a cut out of the interest you earned in taxes from the bank they bailed out with taxpayer money in 2008.

The compound net annual rate is the percentage of money you earned on an investment after Uncle Sam takes his cut. So, if you invest $100 into an account, and you receive 4% a year on an investment, you’ll get $4. But if Uncle Sam takes $1 in taxes, suddenly you have just $3 per year, or a 3% return. Thanks a lot, Obama.