Rate of Return

[RobbieB]

I don't know.

I do know that after 5 years of retirement I have way more dough than I started with -

 

[target2019]

Sounds about right for a 3% Certificate of Deposit.
What asset allocation and investments proposed?

If it is a CD, then why pay an FA?

Yeah, that's where I was going with the comment.

For one account we hold, that is 3 Vanguard total market funds (about 50% equity), the 10-year personal performance (Vanguard terminology) was 7.1%.

If you're going to pay an FA something like 1% AUM fee for 3% performance, it sounds insane.

 

[HI Bill]

Vanguard says 12.3% for me. For 9 out of the 10 years, I was mostly in VTI and VOO. Last year or so, I added 20% bonds and money market. If he is promising 3% after inflation and fees, then that wouldn't be too bad, after the market run we've had. Just realize that the promise may not be possible to keep....no guarantees once you're invested in the market.

 

[homestead]

Vanguard says 9.3% for me with 50/50 balance. There was a few withdrawals, not sure how Vanguard accounts for those.

 

[target2019]

Vanguard uses IRR/XIRR, I believe.

Calculation method. Personal performance uses a formula called internal rate of return (IRR), which is a dollar-weighted return. IRR takes into account new money coming into your investment, as well as how long that money has been held. Don't confuse your personal rate of return with those posted for funds and indexes. The returns presented in these instances use a time-weighted calculation, which does not take cash flow into consideration.

https://personal.vanguard.com/us/content/MyPortfolio/performance/LMperfSummaryInfoContent.jsp

 

[Looking4Ward]

8.4% per Vanguard.