18.06 % thru no fault of my own...the TSX floated all boats in 2016 and I'm sure we all feel like geniuses haha. Hope 2017 is half as profitable!
( I just realized I never sold a single stock all year...1st time ever)
18.06 % thru no fault of my own...the TSX floated all boats in 2016 and I'm sure we all feel like geniuses haha. Hope 2017 is half as profitable!
( I just realized I never sold a single stock all year...1st time ever)
I had a good year this last 12 months and my portfolio gained/recovered about 25%. The downside is that based on since I started just before 2012 this is the fist time I have been in the black. Including divs I am up around 7.5% total. Tracking my performance against indexes tells me I should have just bought indexes. How boring would that be ? lol
PM'd you.
2016 XIRR was 47%, but this was after 2 negative years. My 4 year XIRR since starting saving is 10.5%. I've also been around 50% cash this whole time, so halve that. Also I hear that XIRR overestimates returns, though I don't understand the math, when large cash inflows are occurring (like when a young investor begins saving) so I'm probably overstating. My "geometric" rate of return (not sure if that's a thing) is 5.3%. I.e (Current Value/Initial Investment)^(1/n)
I'm quite sure if I'd just been 80/20 couch potato with a 6 month emergency fund, as per standard CMF recommendations, I'd be much further ahead. *sigh*
For those of us in later years, aiming at balanced portfolio, the performance of these balanced mutual funds may be of interest.
http://globefunddb.theglobeandmail.c...pi_manager_id=
By the way, PH&N are in the list. I think Ian said earlier that the one he has is now closed to new investors. But they do have others. I use TD Monthly Income (another balanced fund) to collect interest and dividends in our registered accounts. It had performance similar to the PH&N balanced funds at 10.87%.
Someone mentioned using the numbers from their on-line brokerage, so I went and looked. Don't know how BMOIL calculate these:
Unregistered 28.5% and 26.2%; RRIFs 9.7% & 11.9% (that's where most of our FI is); TFSAs 44.9% and 25.7%. (compared with my simple minded overall final 19.6% yield) Looks good to me, but really just rebounding!
Last edited by agent99; 2017-01-04 at 07:47 PM.
XIRR gives accurate Money Weighted Rate of Return (MWRR), which is the actual investor's return including the timing of external cash flows.
Time Weighted Rate of Return (TWRR) filters out the effect of the timing of cash flows on rate of return.
For example in 2016, the market performed better in the second half of the year than in the first half. If you added funds only in the second half of the year, then your MWRR would be higher than your TWRR. If you did not add or withdraw any money in the year then MWRR = TWRR. TWRR is better for comparing your investment to market benchmarks or to other investors.
This CCP blog explains it in more detail: http://canadiancouchpotato.com/2015/...ate-of-return/Geometric rate of return is used for calculating multi-year compound investment returns. Say the market dropped 50% in year 1, then went up 50% in year 2. If you started year 1 with $1000, at the end of year 2 you would have $750.My "geometric" rate of return (not sure if that's a thing) is 5.3%. I.e (Current Value/Initial Investment)^(1/n)
Your arithmetic return is (1 - (0.5 + 1.5) / 2) = 0, or 0% return, meaning your original $1000 would still be $1000, which is clearly not accurate for compound investments.
Your geometric return is 1 - ((0.5 x 1.5)^(1/2)) = -13.4% compound annual return. 1000 x (1-.134)^2 = $750 which is accurate.
Eschew obfuscation. Espouse elucidation
1 year (XIRR) 13.4%
5 year 9.4%
10 year 6.4%
Allocation 67% Equity/33% FI+ cash, in withdrawal mode (no pensions, pre CPP/OAS). Overall a good year
Canadian portfolio - up close to 24%.
US portfolio - up close to 12%.
Total around 15%. Great year.
Since I started tracking the DIY dividend stock portfolio, 9% annualized.
Buy and hold and let dividends get reinvested. Boring can work.
Hidden Content - Working on a $1 million portfolio and $30k per year from it.
My portfolio was up 18.34% while my husbands was 9.33% .