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Year To Day Returns

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That time of the year. What are your returns?

My 32/68 portfolio returned 4.5%.

My ER is .066%, in other words, for my 7 figure portfolio, I pay about $1077. If I add 1.0% expense for a fiduciary FA I would be paying $17,349.00! Seventeen times more expensive to hire an adviser to do what I can do myself. This is strong evidence to learn to manage your portfolio yourself. Once again, here is my simple and very boring portfolio, returns, expenses and asset allocation.

 

You can do this too. You don't have to have an MBA or a crystal ball to construct a similar portfolio. My 4.5% return is from the market, not from any insights, correct forecasting or picking the right investment. If you are young or you don't need your investments to supplement you teachers pension, you would allocate more to stocks than to bonds.

 

I have a conservative portfolio because I need it to supplement my meager teacher's pension. If you don't, heck, you can allocate 100% to stocks, and leave the entire amount to your heirs or charities.

 

2017_Q2_Returns.png

 

 

 

2017_Q2_Expenses.png

 

 

 

Below the percentages are in the allocation, NOT RETURNS.

2017_Q2_Asset_Allocation.png

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53 %Stock/ 47 bond seems to be edging up towards stocks after having set it at 50/50 ln January

Thanks Steve for the reminder to check.

 

I use Morningstar -ray for this info

 

YTD 5.9% Average expense ratio 0.06%

 

Best performers

 

Vanguard Total International 14.83% Admiral

Vanguard Mid Cap Index 9.50% Admiral

Vanguard Total Stock Index 9.32% Admiral

 

Worst

Inflation Protected Short Term Securities 0.16 % Probably need to get rid of this. This is less than a money market return but where do I move it? Bonds in general are in the dumps.

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I know domestic is up about 8% and international about 14%, but one of my favorite parts about investing in index funds is not having to calculate YTD returns :)

 

I know it is fun for most and that is awesome but for me it is quite the hassle to break out the XIRR formula and account for the date and amount of every contribution. Personally, it is just nice to know I got exactly what I "deserved".

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Just keep it easy. [(Total Balance ytd) - (Balance at beginning of year + total contribution ytd)]/[(Balance at beginning of year + total contribution ytd)] = ytd return %

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Just keep it easy. [(Total Balance ytd) - (Balance at beginning of year + total contribution ytd)]/[(Balance at beginning of year + total contribution ytd)] = ytd return %

 

Ed,

I know the Bogleheads spend hours and hours on the XIRR, and love talking about the endless lines of code! I just love those guys and gals, engineers make the world go around, and I love our engineers, but DK is right, keep it simple with his formula. I use it too. And M* portfolio feature does a lot of work by providing YTD, ER, and the allocation for each of my investments for the three tables above. Yikes, it would take me weeks to do all of that by hand.

 

To get the dollar amount of $1077 ER for my portfolio, I did have to multiply each of my holdings with the ER to get the dollar amount in expenses for each fund. I just added it up. I am very proud of the extremely low costs of my plan and will be inserting this data in my revision of Late Bloomer Millionaire book.

 

I believe its one of the reasons why the general public is so turned off my personal finance, too many formulas, statistics, and mumbo jumbo talk. Of course, your YTD return might be a little higher when calculating your contributions per month, but it's not worth it. And the lurkers here (and on Bogleheads) might be turned off.

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I believe its one of the reasons why the general public is so turned off my personal finance, too many formulas, statistics, and mumbo jumbo talk. Of course, your YTD return might be a little higher when calculating your contributions per month, but it's not worth it. And the lurkers here (and on Bogleheads) might be turned off.

 

 

 

Steve as usual has it right.

 

 

When I owned insurance annuities I could never figure out my performance because it was by units and not shares. It pissed me off. It was like they were hiding info. Even the advisor couldn't ever give me my YTD performances .

I never make YTD calculations.My math skills are very suspect!! No expert on spreadsheets either. I use the free Morningstar program. http://portfolio.morningstar.com/RtPort/Free/InstantXRayDEntry.aspx?dt=0.7055475

 

Vanguard's website pretty much gives you all the info you need too. Best website in the industry. 100% transparent

 

They say not to check your returns, just ignore them and look at your portfolio once a year in maybe January after all dividends have been declared. But I check my portfolio often because I like to notice trends in my asset classes. Right now its obvious Internationals are finally showing their stuff after years of underperformance. I am a bit underweighted there but i'm doing nothing about it. Don't want to be a performance chaser. With about a 6% return I am happy.

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Also just in case someone is not aware, Morningstar can help you monitor your portfolio easily. Just register and establish a log in. Then go to portfolio and set it up and save it. It will give you all the info you need daily. Don't be swayed into buying a premium membership unless you really want to. The portfolio manager is free. Of course if you are in annuities it might not work for you as underlying mutual funds might not match up with retail funds , especially if everything is in units.

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Communicating in text is tough so please read this in a positive light. Assuming we're all invested in index funds, why make this calculation? Are we just looking forward to a hit of dopamine that comes from knowing exactly how much we've made? If so I totally understand that, but I prefer other metrics.

 

I still harbor such negative emotions from my days of owning active funds and managed accounts. I remember the stress of calculating performance and comparing it to the index. The thought of going through that exercise (even with a simple formula) just puts a bad taste in my mouth. Hopefully others haven't been traumatized, this is just my personal experience.

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Communicating in text is tough so please read this in a positive light. Assuming we're all invested in index funds, why make this calculation?

 

It's not for us, it's for our colleagues. I know what I am doing, and so do the rest of us who post our returns.

Because 80% of our colleagues who are invested in a 403b own those horrific annuities. The most but not all of the remaining 20% are paying hefty costs for either an FA and or actively managed funds.

 

It's to show the lurkers that if you construct your portfolio in index funds, the portfolio will follow the market. One other thing that is fairly certain, I will always underperform DK for example because he has more stocks and I have more bonds. It's showing our colleagues that investing is not hooky poky, spooky, or some type of guess. Its careful construction of portfolios and how they perform in relation to the stock and bond market performance.

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That makes sense. In that case, using that rough formula gives me a 9.5% year to date return (I recognize I have no predictive power, still these kind of numbers in the context of the last decade have me bracing for a bear market every day).

 

My portfolio has been roughly 89% stocks, 11% bonds. Of the stocks, roughly 70% are domestic and 30% are international.

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We all know that we have no powers what so ever to predict ANYTHING!

 

The point is that your return reflects your aggressive allocation with 89% stocks and 11% bonds. 9.5% is close to DK's 10.6% return. He has a similar aggressive allocation because both of you are young. I know you know all of this. My comments are for the lurkers who may be still learning that there is a logic and a pattern behind our low-cost diversification plans with a stock bond split with a bond allocation similar to our ages.

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and there are more lurkers here than posters on this site-unfortunately. I believe though a good many are absorbing and learning from our articles, writings ,and posts.

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Agree with everyone's post above. Showing our ytd return and assets allocations shows people how with riskier allocation will provide more rewards and other useful information. If you look at target date fund, you can probably match what has been posted here to how similar it performs with target date funds. For example, if you look at Vanguards Target date funds by retirement year, you can see the ytd return decreasing for retirement years that are near.

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