It appears some are giving YTD figures and others YTD annualized figures. Makes a big difference, especially this early in the year!
It appears some are giving YTD figures and others YTD annualized figures. Makes a big difference, especially this early in the year!
Yes, but the question is how one should account for the addition or withdrawal. One can withdraw all expenses of the period at the beginning of the period or at the end, and it makes a difference; in a bear market, it is better to get the needed cash out of harm's way, and in a bull market one should leave it invested till the last minute. So, the math has to match the time of withdrawal.
I make periodic withdrawals through the year as I need it. Then, on this thread a formula was suggested that basically assumes 1/2 of the WR at the beginning, and 1/2 at the end. See post #164 by pb4uski. This turns out to match the periodic withdrawal scenario the best, without using the golden-standard XIRR. See my post at #172.
I understood the thread to be asking for simple YTD yield. That is simply taking the increase or decrease to date since 12/31/2015 (after accounting for additions or withdrawals) divided by the 12/31/2015 balance. That's what I did.
Come on annualized yield sounds a lot sexier than simple yield. I recalculate for simple yield YTD, I think my account was up 1%, my husband's account was up 2%.
Sent from my iPad using Early Retirement Forum