Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
401k 10 year Return On Invested Capital (ROIC)
Old 09-25-2018, 11:33 AM   #1
Full time employment: Posting here.
corn18's Avatar
 
Join Date: Aug 2015
Posts: 692
401k 10 year Return On Invested Capital (ROIC)

There was a thread on bogleheads that got me thinking about my 401k and what it's returns have been over the last 10 years. I couldn't figure out an IRR as that made my brain hurt, so I looked at simple math:

$143,457 Total Contributions
$441,387 Current Value

208% ROIC
21% CAGR

I think the growth on the contributions and match (5%) has been 7.62%, which isn't bad for a 30/70 401k. But that free money certainly compounds well to 21% CAGR.

I am planning to convert it all before 70 in the 12% bracket, so the after tax number still look good:

$388,421 after 12% tax

171% ROIC
17% CAGR

Yeah 401K!
corn18 is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How is Year to Date Return Different from 2016 Return? nico08 FIRE and Money 4 11-12-2016 10:44 AM
Question re: return of capital vs capital gain in a partnership Lisa99 FIRE and Money 4 02-10-2016 12:06 AM
84 year old father in law portfolio 90%+ invested in mining and metals, how to convin SteveNU Other topics 11 08-17-2014 07:40 PM
Your invested assets: taxable vs TIRA/401k vs Roths haha FIRE and Money 119 02-01-2014 09:09 PM
What's your Roth invested in? Kronk FIRE and Money 18 07-15-2006 06:34 PM

» Quick Links

 
All times are GMT -6. The time now is 10:45 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×