YTD

[LEX]

13.8 % with less than .73 beta (S&P500) 8)

Thank you Vanguard!

 

[Toejam]

17.85% Allocating more to international and emerging market stocks, mutual funds, and ETFs helped my YTD return in 2006. Not as optimistic for 2007 but will stay the course.

 

[crazy connie]

Well Brewer.... There are a good number of women here and I'm sure they would like to know. Don't leave them hanging waiting

Need to know based on probabilty of opportunity to indulge in playtime!

 

[2soon2tell]

13.9% 80/20 Equity/FI

Bought a couple of small biotechs that pulled down the return as well as some canadian O&G trusts.

2soon

 

[martyb]

Just figured it up, never calculated it before. It's obvious I'm new to this investing stuff . Earnings for my 401k in 2006 were 14.58%. For the first 3 quarters I was moving around a little into different stock & bond configurations, and did ok, with the exception of a very small loss in the 2nd quarter (-$134.19). For the 4th quarter, I went 100% into a Lifecycle fund based on a yr. 2030 retirement (I'm retiring in 01/2013). So...I guess it all worked out ok. Even a blind hog can find an acorn, so they say!

 

[cute fuzzy bunny]

My penis size is...

Is that the exact length? Three dots?


15.3% for 2006
12.8% annualized last 3 years
11.2% annualized last 5 years

Considering that up until a couple of years ago most of my money was in Wellesley, not too shabby.

 

[TromboneAl]

Font size matters.

 

[Cut-Throat]

Whenever I see threads like this I come to the conclusion that 90% of people have no idea how to compute annual return rates. I see a lot of double digit returns for a 60/40 stock portfolio

 

[cute fuzzy bunny]

Font size matters.

Even the 32" screen isnt creating an impressive result...

 

[FIRE'd@51]

Whenever I see threads like this I come to the conclusion that 90% of people have no idea how to compute annual return rates. I see a lot of double digit returns for a 60/40 stock portfolio

Why? The Vanguard S&P 500 Index Fund had a total return of 15.6% and the Total Bond Market Index Fund 4.2%.

0.6 x 15.6% + 0.4 x 4.2% = 11%

 

[Cut-Throat]

Why? The Vanguard S&P 500 Index Fund had a total return of 15.6% and the Total Bond Market Index Fund 4.2%.

0.6 x 15.6% + 0.4 x 4.2% = 11%

Mostly because the majority here does not invest this way. The S&p 500 was the biggest dog on this forum for the last 3 years. Also if I was only seeing 11% returns, I might buy it. - but, we are getting much bigger numbers than this.

 

[REWahoo]

Whenever I see threads like this I come to the conclusion that 90% of people have no idea how to compute annual return rates. I see a lot of double digit returns for a 60/40 stock portfolio

While the ability of everyone here to calculate an accurate annual return rate may vary, I don't think it was a real stretch to get double digit returns from a 60/40 mix. Case in point, my 48/35/17 mix returned 11.8% in 2006. 70% was invested in these three funds:

Wellesley +11.4%
D&C Balanced + 13.8%
D&C International + 28.0%

Nice and easy, like driving a Lexus!

 

[Nords]

The S&p 500 was the biggest dog on this forum for the last 3 years.

If we have anything from the S&P500 in our portfolio it's a coincidence...

 

[martyb]

OK, I admit I don't know if I'm calculating correctly. Could somebody please explain the proper method to me? I really do want the right figures, and have never been a math whiz. I was just going with my beginning number in 1st quarter, and using the total interest earned for the year based on my 4th quarter statement, then determining what % that interest rate was. In other words, beg. amt. X 14.58% equals the total year's interest. I used each quarter's interest increase (or loss) for the total interest amount. This does not include my contribution amounts. If this is wrong, I want to know how to do it correctly.

 

[LOL!]

The way to calculate it correctly is to enter all your transactions into a program like MSMoney, Intuit Quicken or Microsoft Excel (use the XIRR) function.
Then you got to run the right report in MSMoney or Quicken as well.

martyb, if you don't take into account contributions, withdrawals, distributions, interest, dividends, charity stock giving and the exact dates and amounts that involved all those, then your YTD is not as accurate as it can be.

Another issue with these YTD threads is that folks pick their 401(k) or their IRA or their best mutual fund or only their stock funds and report that. They ignore the $300,000 they have sitting in a 0.5% interest savings account.

After this post I expect to see all the same responses as last year. I welcome them!

 

[audreyh1]

Whenever I see threads like this I come to the conclusion that 90% of people have no idea how to compute annual return rates. I see a lot of double digit returns for a 60/40 stock portfolio

It was certainly possible to get double digit returns on a 60% stock portfolio. I did (13% ROI on 57% equities). Classic Quicken ROI for 2006 that backs out any additions to the portfolio over the year but gives you credit for monies withdrawn. 57% equities included a healthy dose of REITs and international and small cap all of which had a banner year in 2006.

LOTs of my equity mutual funds did very well in 2006. REITS - > 30%, International - 20%, many US Stocks funds - 17-18%. Cash/bonds had a pretty good year too.

Gosh - even the balanced fund DODBX which nominally holds 60% equities did 13.9% in 2006.

Audrey

 

[cute fuzzy bunny]

If I had any money in a .5% savings account, i'd shoot myself.

I use vanguards "bank". Basically a checking account "shim" over the prime money market account in my portfolio, currently earning 5.11%. Works pretty well

I do have five bucks in a penfed savings account that I dont think earns interest. Sort of gnaws at me a little bit, but I get over it.

 

[retire@40]

...if you don't take into account contributions, withdrawals, distributions, interest, dividends, charity stock giving and the exact dates and amounts that involved all those, then your YTD is not as accurate as it can be.

Another issue with these YTD threads is that folks pick their 401(k) or their IRA or their best mutual fund or only their stock funds and report that. They ignore the $300,000 they have sitting in a 0.5% interest savings account.

Exactly. In response to the YTD question, I've seen many people say "I made XX% in my 401(k)." That tells me they are not factoring in their checking account and other cash accounts that may have a significant impact on their overall ROI.

Also, I would venture to guess that most people do not factor in the time of their deposits and disbursements in their investment accounts which also skews the results. For example, just because one may invest money in a fund that earned 10% for the year does not necessarily mean he made 10% for the year if he invested his funds on a date other than the first date of the year. A friend told me he made 20% in a fund because that is what the fund reported for it's YTD return, but later told me he had less in that fund at the end of the year than he had started with because he had made his investment mid-year at the fund's peak.

That's why it's important to look at your personal ROI, not the fund's return.

And, it's also important to view your results with consideration to your weighted-average beta (WAB). The key would be to earn as much as possible while keeping your WAB as low as possible. And obviously, monitoring your weighted-average expense ratio and keeping that as low as possible is also important.

 

[REWahoo]

I do have five bucks in a penfed savings account that I dont think earns interest. Sort of gnaws at me a little bit, but I get over it.

Getting mellow in your old age? Or just losing a step?

 

[cute fuzzy bunny]

Surely you jest...

 

[HFWR]

Picky, picky...

And don't call me Shirley!!

 

[Spanky]

LOTs of my equity mutual funds did very well in 2006. REITS - > 30%, International - 20%, many US Stocks funds - 17-18%. Cash/bonds had a pretty good year too.

Gosh - even the balanced fund DODBX which nominally holds 60% equities did 13.9% in 2006.

Audrey

I agree that a double digit return for 60/40 is doable. The coffeehouse portfolio (60/40) returns more than 15% for 2006.

 

[Shredder]

I agree that a double digit return for 60/40 is doable. The coffeehouse portfolio (60/40) returns more than 15% for 2006.

That's pretty much my IRA. Only more international, less reits, and more like 65/35, but you ge the idea. It got me slightly over 14%. Yea coffeehouse!! I did not figure my whole port, because I sold "I" bonds, used money, added here and there. It WAS up over 20%, but of course that is not accurate so I did not say that. And it's too much like work to figure it all up just to post here. It does sound like everyone had a good year though, no matter how it was figured. Lets hope 07 does as well..........Shredder

 

[martyb]

I was only trying to figure the return on my 401k, not all of my entire financial holdings, of which there aren't really any . My main retirement funds will be two cola'd pensions, and I'm not carrying anything significant in either checking or savings that I'd want to add to the mix. I'm only looking at the 401k. Therefore, what's wrong with the way I figured my ROI for ONLY the 401k? If it's not exact, isn't it pretty close? I mean, if it's in reality say.....14.24% instead of 14.58%, I'm not too worried about it since I'm pretty much a passive investor and what I REALLY wanted was a big number I could use to rag on some of my co-w**kers who I know for sure are keeping their money under their mattress or at best in the super-safe govt. TSP G fund where they might not even break 5%! I just wanted a little braggin material at the watering hole ! If I really earned 14% then I'm happy as a clam.

 

[LOL!]

... what I REALLY wanted was a big number I could use to rag on some of my co-w**kers who I know for sure are keeping their money under their mattress or at best in the super-safe govt. TSP G fund where they might not even break 5%! I just wanted a little braggin material at the watering hole ! If I really earned 14% then I'm happy as a clam.

How many folks would really say anything about their return at the water cooler? I certainly would not. Who wants to set up a new poll on that?