Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
It's Good To Take Stock of Returns
Old 07-19-2011, 07:19 PM   #1
Recycles dryer sheets
 
Join Date: Jan 2011
Location: Marietta
Posts: 117
It's Good To Take Stock of Returns

Just did my half yearly checkup and pulled data from my vanguard account. It is nice to see that staying the course no matter what the market does and keeping an eye on the AA is always the right thing to do. I wish they still reported the 10 year figure....

My Personal rate of return 06/30/2011
1 year 26.9%
3 years 12.9%
5 years 10.5%
__________________

__________________
Give me a surfboard and a hammock, some fresh fruit and veg, a fish or two and I am happy for life. I don't need much of a roof over my head to be happy.
RetirementColdHardTruth is offline   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!

Old 07-19-2011, 09:54 PM   #2
Recycles dryer sheets
Aeowyn's Avatar
 
Join Date: Jan 2011
Location: Scotts Hill, TN
Posts: 105
I pulled my returns from Quicken - they are very close to yours. Perhaps the 10 year is too.

Annualized personal rate of return as of 6/30/11:

1 year 29.2%
3 year 11.8%
5 year 10.5%
10 year 9.9%
__________________

__________________
Aeowyn is offline   Reply With Quote
Old 07-20-2011, 06:12 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,619
Please note that one year ago the market had dipped to a low point around June 30th. There were only a few days in 2010 where the market closed lower than on June 30th. Then over the next 5 weeks, the market popped more than 10%.

Thus everyone's one-year personal rate of return should look particularly awesome. Enjoy it now because next month your 1-year personal rate of return is going to be quite a lot lower.
__________________
LOL! is offline   Reply With Quote
Old 07-20-2011, 06:30 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,438
I wish I had the gonads to be as heavily invested in stocks. The S&P is up 30.69%(according to Fidelity) over the same 1 year period. You guys must have a strong tilt towards equities to get those returns. Congrats!
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 07-20-2011, 08:36 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,432
Question for OP and Aeowyn: What is your AA and what tickers are you in?

I'm 60% equities/40% fixed income AA and mostly in index funds and Harbor Bond in my employer's 401k. While I'm happy with the returns and volatility, the returns are more modest:

Quicken Vanguard (ex 401k)
1 year 16.21% 26.8%
3 year 4.09% 4.5%
5 year 3.42% 4.2%
__________________
pb4uski is online now   Reply With Quote
Old 07-20-2011, 09:08 AM   #6
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
I agree with staying the course no matter what the market does, but from time to time it still makes sense to check your "course" and see if it's still the right one for you. I stayed the course after the 2008-09 meltdown, but after all that stress once I saw the market recovered a majority of its losses I redid all my numbers and realized that my investment goals could likely be achieved with a 55/45 or 60/40 allocation instead of the roughly 70/30 I had been using. (That would *not* have been the case if I panicked and sold a lot of stocks near the lows.) So a few months ago I scaled back my equity holdings to that level, and I'm prepared to again "stay the course" with the new course.

So in some sense this is letting bad market memories impact my investing decisions, but it wasn't a knee-jerk response based on gloom and fear. I didn't sell really low, I didn't panic, but when most of the paper losses were recovered I took a long look to see if (and how much) I could safely pare back my equity exposure and still have a good shot at reaching my target. Split-second emotional decisions based on fear and greed are wealth killers. But it is appropriate from time to time to ask yourself whether or not the AA you've selected still is, and will continue to be, the most appropriate given your own situation and risk tolerance.

I discovered what my risk tolerance was after 2008-09: just tolerant enough to not panic and sell out at the bottom, but not so high that I'm willing to relive that scenario with a 70/30 AA ever again.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 07-20-2011, 12:49 PM   #7
Recycles dryer sheets
slingshot's Avatar
 
Join Date: Jun 2010
Location: Scottsdale
Posts: 57
Aeowyn-love your foal pic
__________________
slingshot is offline   Reply With Quote
Old 07-24-2011, 12:15 AM   #8
Recycles dryer sheets
Aeowyn's Avatar
 
Join Date: Jan 2011
Location: Scotts Hill, TN
Posts: 105
My personal returns are a little better than my portfolios would suggest. I put a lot of money into the market when it was crashing (and also as it was recovering). Then I recently took a lot out last fall and winter to make a couple real estate purchases (bought low, sold high). My portfolios have also been in a state of transition as I prepare for a major career change.

Until recently, I've basically been 100% equities. I primarily invest in managed funds (vs. index). As I get ready to leave my current job, I'm starting to build some bond portfolios as an insurance policy against a down market when I need to pull money out. Right now, I'm ~10% bond.
__________________
Aeowyn is offline   Reply With Quote
Old 07-24-2011, 12:16 AM   #9
Recycles dryer sheets
Aeowyn's Avatar
 
Join Date: Jan 2011
Location: Scotts Hill, TN
Posts: 105
Quote:
Originally Posted by slingshot View Post
Aeowyn-love your foal pic
Thanks! She's a lot bigger now, but she's still my baby.
__________________
Aeowyn is offline   Reply With Quote
Old 07-24-2011, 10:23 AM   #10
Thinks s/he gets paid by the post
teejayevans's Avatar
 
Join Date: Sep 2006
Posts: 1,221
Quote:
Originally Posted by RetirementColdHardTruth View Post
My Personal rate of return 06/30/2011
1 year 26.9%
3 years 12.9%
5 years 10.5%
I was 60/40, now more like 65/35
1. 20.3
2. 9.4
3. N/A joined VG back in 2007

To give you an idea of what difference makes in investment choices, my 1 year for my fido account that is 95% equitys: 33.4%.
My VG post-tax investments are more conservatively invested because of the shorter time horizon. Don't get too worked up in a "mine is bigger yours contest", the key is are your accomplishing your goals.
TJ
__________________

__________________
teejayevans is offline   Reply With Quote
Reply

Tags
Asset Allocation, gains, returns, stock market


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
Looking for a good Credit Union in OK73134 rsingh6675 Other topics 4 07-15-2011 02:43 PM
"7 Reasons U.S. Needs a Good Depression Now" Retire Soon FIRE and Money 11 07-05-2011 04:03 PM

 

 
All times are GMT -6. The time now is 06:27 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.