For the last 6 years pre-retirement Ive kept a weekly graph of my portfolio. It probably seems excessive to some but I like playing around with these things and looking back to see how my growth has been.
Now that I'm retired, I want to do something a little different. I want to plot a graph of my projected portfolio balances going forward based on my assumed returns with a second graph over layed on top showing my actual retirement portfolio. I want to see how I'm doing compared to how I expected to be doing as well as see the volatility compared to a constant return. That's easy enough but here's my question:
I'm not sure how to account for differences in my actual portfolio that are due to things I do differently than I had expected rather than due to unexpected returns. In other words, if I projected to spend $6000 per month the first year but actually only spend $5000 per month my "actual portfolio" graph will look better than I anticipated at the end of the year but I think I want any differences between the two graphs to show how much better or worse my portfolio returns have been than expected...not how much more or less money I have than I expected. Does that make any sense? Suggestions?
Now that I'm retired, I want to do something a little different. I want to plot a graph of my projected portfolio balances going forward based on my assumed returns with a second graph over layed on top showing my actual retirement portfolio. I want to see how I'm doing compared to how I expected to be doing as well as see the volatility compared to a constant return. That's easy enough but here's my question:
I'm not sure how to account for differences in my actual portfolio that are due to things I do differently than I had expected rather than due to unexpected returns. In other words, if I projected to spend $6000 per month the first year but actually only spend $5000 per month my "actual portfolio" graph will look better than I anticipated at the end of the year but I think I want any differences between the two graphs to show how much better or worse my portfolio returns have been than expected...not how much more or less money I have than I expected. Does that make any sense? Suggestions?