Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 07-02-2009, 02:12 PM   #21
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by dixonge View Post
So theoretically if I began this quarter with 18, contributed an additional 16, and ended the quarter with 40, then ( (40-16) / 18) -1 = 33% ROI ?
I wouldn't say the ROI is 33%, because it's not. Some of that is return on newly invested capital rather than the return on just the initial 18. I would say instead that my account balance is 33% higher than at the start of the quarter.
__________________

__________________
"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
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 07-02-2009, 02:14 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
Quote:
Originally Posted by dixonge View Post
So theoretically if I began this quarter with 18, contributed an additional 16, and ended the quarter with 40, then ( (40-16) / 18) -1 = 33% ROI ?
Not really. The equation I used is simple and it works as a close approximation for ROI for me because my contributions during the quarter were under 5% of my portfolio value. In your case, your contributions are almost as large as your starting portfolio value, so you can't use the formula I posted above. To get an exact ROI or internal rate of return, it is probably best to use a spreadsheet that tracks the exact amounts contributed and the dates of those contributions.

My equation works better as the ratio of the contributions relative to the portfolio value approaches zero (sort of like the time steps in a limit function approaching zero that makes calculus work).
__________________

__________________
FUEGO is offline   Reply With Quote
Old 07-02-2009, 02:20 PM   #23
Full time employment: Posting here.
dixonge's Avatar
 
Join Date: Mar 2008
Location: Ajijic
Posts: 848
Quote:
Originally Posted by FUEGO View Post
Not really. The equation I used is simple and it works as a close approximation for ROI for me because my contributions during the quarter were under 5% of my portfolio value. In your case, your contributions are almost as large as your starting portfolio value, so you can't use the formula I posted above. To get an exact ROI or internal rate of return, it is probably best to use a spreadsheet that tracks the exact amounts contributed and the dates of those contributions.

My equation works better as the ratio of the contributions relative to the portfolio value approaches zero (sort of like the time steps in a limit function approaching zero that makes calculus work).
That's kinda what I thought. My gain over deposited funds is 22% or so starting in last November. But it does not take into account blow-by-blow gains per deposit. I generally make 1-2 deposits per month, but quite a few short-term trades. I always seem to make things more complicated.

__________________
dixonge is offline   Reply With Quote
Old 07-02-2009, 02:27 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,530
Quote:
Originally Posted by dixonge View Post
That's kinda what I thought. My gain over deposited funds is 22% or so starting in last November. But it does not take into account blow-by-blow gains per deposit. I generally make 1-2 deposits per month, but quite a few short-term trades. I always seem to make things more complicated.

I think "complicated" is the way the typical person's investments are in general. We have twice monthly contributions to DW and my 401k (into 2-3 funds in each), plus twice monthly contributions to IRA's or taxable accounts, plus twice monthly contributions to an HSA investment account. That's thirty minimum "investments" per month, ignoring any additional shifting of assets or rebalancing or one time investments or reinvested divs or CG's. Hence why I use my formula to get a "good enough" number!

For me it is roughly I start with say 100 and add 5 more into the portfolio during the quarter. So returns on that contribution are generally relatively small as a portion the whole portfolio.
__________________
FUEGO is offline   Reply With Quote
Old 07-02-2009, 08:42 PM   #25
Thinks s/he gets paid by the post
Free To Canoe's Avatar
 
Join Date: May 2008
Location: Cooksburg,PA
Posts: 1,738
Up 15% YTD.

95% Equities
__________________
Free To Canoe is offline   Reply With Quote
Old 07-03-2009, 09:14 AM   #26
Full time employment: Posting here.
 
Join Date: Feb 2008
Posts: 920
We just did the monthly buy and got lucky with the Thursday market dip.

I know that's not very significant in the grand scheme but for some reason it's a thrill (or grumbling) when the exact day you move cash to equities the market moves strongly in one direction or the other. Same for the annual rebalance, where I must do my obligatory mention of still being pissed about the new year DOW 9k uptick.
__________________
tuixiu is offline   Reply With Quote
Old 07-04-2009, 11:11 PM   #27
Recycles dryer sheets
 
Join Date: Jun 2009
Location: SoCal
Posts: 230
Yep, sure is nice to have one quarter where the return is positive, it is a confidence booster.

+18%, about 80% in equities
__________________
caninelover is offline   Reply With Quote
Old 07-06-2009, 03:21 PM   #28
Recycles dryer sheets
Life_is_Good's Avatar
 
Join Date: Mar 2007
Posts: 227
Up just over 11% for the Q

AA = 65/35
__________________
Life_is_Good is offline   Reply With Quote
Old 07-06-2009, 03:37 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Up about 15% 40/40/20. No money added...so this makes it even better...
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 07-08-2009, 09:02 AM   #30
Thinks s/he gets paid by the post
RockyMtn's Avatar
 
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,231
Second quarter total return (+14%) was nice rebound from a slightly down first quarter(- 6%). Took some profits mid june in natural resource fund, international funds and small cap funds as I thought they ran too far too fast. Proved to be a wise move. +7.4% ytd with some cash to play with once this current pullback runs its course. AA is 65/35.
__________________

__________________
RockyMtn is offline   Reply With Quote
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
Inconsistent Results in Firecalc 3.0 - Different Results/Exactly same data cvc8445 FIRECalc support 5 05-24-2009 04:42 PM
Theoretical Investment Question for 2009 frayne FIRE and Money 2 12-26-2008 05:21 PM
Spreadsheet results not agreeing with results page Lsbcal FIRECalc support 1 02-03-2008 11:08 AM
First Quarter, 2007 Investment Returns justin FIRE and Money 78 04-14-2007 04:46 PM
2nd Quarter 2006 investment results - Surprising! justin FIRE and Money 10 07-04-2006 08:51 PM

 

 
All times are GMT -6. The time now is 07:44 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.