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What's Your Return For The Year In Your 403B

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Mine so far is only 9%. It's because the market went up so much when my money entered into the 403b account.

 

 

Good question and I will be reporting in two weeks after the year is officially over.

BTW "Only 9%?" Nothing wrong with 9%, since so many of our colleagues in annuities are getting much less than that.

 

Steve

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How do you figure this? Is it as simple as getting the total number of payroll contributions and deducting that from the cash value of the portfolio?

 

 

The way I calculated mine was to take the beginning balance at the beginning of the year. Now, I take the total value of the portfolio and subtract the beginning balance and payroll contribution. Divide the difference by the total of beginning balance and payroll contributions.

 

For example, I had $10k at the very beginning of the year. I contributed $10k more this year. At the end, my total value of the portfolio is 21k. So, 21k - 10k - 10k = 1k profit this year. 1k/20k = 5% return this year.

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So the expense ratio is factored in to the price of the shares, right?

 

 

Yeah. If you wait until the end of the last day of the year, then it's more accurate.

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10.65%.

 

I'm more than happy after losing 50% during the crash. I continue to be easing up on equities and I am buying more bonds. No more bubbles for me. ( I hope)

 

'm not worried about bond bubbles as much as stock bubbles for obvious reasons.

 

Let hope all the folks looking for jobs find them in 2011.

 

 

Tony

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I have no idea what my 403b return was this year. Why? Because it is spread out among several different providers. Why? Because the offerings provided by my district have changed over the years. Consequently, I have 403b accounts with Fidelity, Vanguard, and (ugh!) Great American Life. I would make an educated guess that the overall return was about 8-9%. I have a 40-60 asset allocation, and I am satisfied with this year's returns. I won't be entirely satisfied until the Dow breaks through the 14,000 level it had reached in 2007. Those folks who are happy about the last two years' returns are overlooking the collapse of stock prices from the 2007 highs. I am still upset over that collapse, although I have continued to maximize my 403b contributions through dollar cost averaging. It has been difficult to stay the course in the past decade, but I have done so nonetheless.

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Old Hat,

 

I'm not sure who you are referring to in reference to better return but I think your return is good enough. Any of us would be lucky getting that kind of return year in and year out. Many things come in to play when it comes to return. Certainly expenses make a difference but also assett allocation. We all like to think its skill when we do well but usually its just luck.

 

Don't try to keep up with anyone's else return as all our circumstances are different. Don't chase returns and don't compare your portfolio to others. Just keep reading and just keep on saving.

 

 

Tony

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9% with a 30/70 portfolio allocation

 

oldhat,

Give us your portfolio mix and we can find out what happened. Also, agree with Tony, don't start comparing yourself to others, only to a benchmark. Also are you an aggressive, moderate or conservative investor. If you are like me, conservative in retirement, you are just fine. I was lucky that my bonds went through the roof in 2010. Bonds are starting to come down.

Steve

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American High-Income Trust (junk bonds) – 5.2%

 

Capital World Bond Fund – 15.1%

 

Capital World Growth and Income Fund – 71.2%

 

SMALLCAP World Fund – 8.5%

 

I've been putting 30% of my contribution into Capital World Bond Fund, 30% into Capital World Growth, 20% into American High Income and 20% into SMALLCAP World. My plan was to keep doing so until I hit 30% total in bonds, then re-adjust. I consider myself an aggressive investor because retirement is a long way off.

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