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sschullo

What Was Your 2012 Return?

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Hi Steve

 

Its always fun to do this.

 

My return was 14% with Vanguard Tax Managed small cap leading the way for me and Vanguard International small cap did very well as well. My lowest performer was Vangurd total bond index but thats to be expected. I still own some american funds which I am locked into and they underperformed their indexes.

 

My allocation is about 65 stocks and 35% bonds, tips, and some high yield bonds along with some Reitts.

 

I continue to put all new money into bond index as we discussed earlier and I am making progress slowly but surely increasing my bond allocation.

 

I am pleased but I just hope we won't have to give it all back in the next meltdown.

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Good For You!!

 

I think most folks will fall in the 11-15% range this year, Even higher if they have an aggressive all equity portfolio.

 

Enjoy your retirement

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30% equity / 70% bond performs at 9%

54% equity / 39% bond / 7% cash performs at 11.7%

65% equity / 35% bond performs at 14%

 

Nice pattern on how the stock/bond split is supposed to work.

 

Any more returns? Come on folks. Show us your returns. 2012 has been a great year.

I wonder for those that had over 80% equity allocation did, such as my pension plan, CalSTRS.

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I would really be interested in hearing from some outliers and what compromised their portfolio. Did you do much better or much worst than what you are seeing in this thread? Why do you think may have caused this outside the norm return?

 

I am sure if enough of you respond, Steve will make a nice graph for us:)

 

Tony

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Hi All,

 

this may be a dumb question, but is the annual return stated somewhere on my end of year statement or do I have to calculate it myself? If so, how?

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Hi All,

 

this may be a dumb question, but is the annual return stated somewhere on my end of year statement or do I have to calculate it myself? If so, how?

 

 

There are several ways to calculate the return. I use my 6th grade math skills and take the balance of your account at the beginning of the year, January 1, 2012 and divided by the ending balance on December 31st. For example, take beginning of the year $10,000 divide by $12,000, end of the year = 83.3. 100 - 83.3 = a return of 16.7%. Thats it!

 

Almost forgot, subtract all contributions!

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Does anybody see a pattern here?

 

30% equity / 70% bond performs at 9%

54% equity / 39% bond / 7% cash performs at 11.7%

65% equity / 35% bond performs at 14%

86% equity / 14% bonds performs at 17.1%

90% equity / 10% bonds performs at 18.12%

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Despite the obvious (more risk higher return) I see that Steve is able to pull off a decent return while taking much less risk than the rest of us.

 

In my defense I did not rebalance. I have decided to get to my target goal of 50 Stock/50 Bond by just maxing out my 457 and my wifes 457 into bonds. Its a slow go but considering I use to be 100% equities I am making progress.. Don't know if this is the right way to go about it or not.

 

Thanks Steve

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Believe me 9% return is a great return while retired. There is nothing wrong with any return that keeps pace with inflation (or in this case, beats inflation). That's the number one investment goal, right after watching costs always.

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Guest Joel L Frank

Hi All,

 

this may be a dumb question, but is the annual return stated somewhere on my end of year statement or do I have to calculate it myself? If so, how?

 

 

There are several ways to calculate the return. I use my 6th grade math skills and take the balance of your account at the beginning of the year, January 1, 2012 and divided by the ending balance on December 31st. For example, take beginning of the year $10,000 divide by $12,000, end of the year = 83.3. 100 - 83.3 = a return of 16.7%. Thats it!

 

Almost forgot, subtract all contributions!

 

 

December 31, 2012 balance of $12,000

January 1, 2012 balance of 10,000

gain/profit of $ 2,000

 

2,000 divided by 10,000 equals a 20 percent return for 2012

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