Business & Investing
Sponsored by

Your annual returns on Investments

3,287 Views | 24 Replies | Last: 5 yr ago by TwoMarksHand
Cypressag123
How long do you want to ignore this user?
I took the plunge with a financial advisor about a year ago (investing in medium risk mutual funds) and the returns I feel were very underwhelming.. about 5%

Curious to know what others are seeing with this approach.. maybe this isn't far off

Thanks Ags
terradactylexpress
How long do you want to ignore this user?
I wouldn't pay a FA to put you in funds, you can do that easily enough yourself through vanguard or fidelity.

If they are doing other things that justify the price to you that's one thing, but paying someone to put you in funds is a waste
terradactylexpress
How long do you want to ignore this user?
Also what has the market done since then?
Petrino1
How long do you want to ignore this user?
terradactylexpress said:

I wouldn't pay a FA to put you in funds, you can do that easily enough yourself through vanguard or fidelity.

If they are doing other things that justify the price to you that's one thing, but paying someone to put you in funds is a waste


This. You're paying a financial advisor 1% (I assume) to put you in mutual funds that you can find for much cheaper on Vanguard or Fidelity. If you have $500k with the advisor you're paying him $5k/year for something you could do yourself. I learned this the hard way after investing with an Edward Jones advisor for several years.
permabull
How long do you want to ignore this user?
AG
Good Poster
How long do you want to ignore this user?
AG
You aren't giving us enough information. What kind of mutual funds? A-shares?
Harkrider 93
How long do you want to ignore this user?
AG
12 mos and YTD returns are flat to negative for the year if you are diversified. That includes vanguard target date funds.

I haven't seen many folks at 5%. Either your advisor got real lucky or you are taking on more risk than you think. I suppose you are quoting a return since you started and it is 15+ mos ago.
BlackGoldAg2011
How long do you want to ignore this user?
AG
some numbers from my portfolio for the last 12 months.
total annual growth: 15.4%
1 yr IRR: 18%
but i am VERY aggressive in my asset mix. i have about 18% in mid risk technology funds and the rest in individual stocks.
my mutual funds are currently down roughly 6.5% from my basis ( i bought them almost exactly 1 year ago.) at the peak this year, they were up 20-22%.

these are all pre-tax numbers.
62strat
How long do you want to ignore this user?
AG
My YTD is 6%, 12 month is 11%, 24 month is 35%. I got as high as 30% 12 month back in Sept.

I'm 92% stock (79/13), 6% bonds. 2% other.
drill4oil78
How long do you want to ignore this user?
AG
Cypressag123 said:

I took the plunge with a financial advisor about a year ago (investing in medium risk mutual funds) and the returns I feel were very underwhelming.. about 5%

Curious to know what others are seeing with this approach.. maybe this isn't far off

Thanks Ags
Why are you paying two fees ... a percentage to the advisor and a percentage to the mutual fund manager. You know what they say the broker makes money, the house makes money .... 2 out of three ain't bad.

Baby Billy
How long do you want to ignore this user?
AG
ea1060 said:

terradactylexpress said:

I wouldn't pay a FA to put you in funds, you can do that easily enough yourself through vanguard or fidelity.

If they are doing other things that justify the price to you that's one thing, but paying someone to put you in funds is a waste


This. You're paying a financial advisor 1% (I assume) to put you in mutual funds that you can find for much cheaper on Vanguard or Fidelity. If you have $500k with the advisor you're paying him $5k/year for something you could do yourself. I learned this the hard way after investing with an Edward Jones advisor for several years.
The value of a financial advisor is not which funds to put you in or the act of putting you in them. If that is what you expect from your FA then you're in it for the wrong reason. People don't get that.
Baby Billy
How long do you want to ignore this user?
AG
This issue has been argued over and over again. You could build your own house, mow your own grass, or bake your own cake, too. It's no different than any other service and it's not that difficult to understand.
UpstateAg
How long do you want to ignore this user?
AG
My retirement account was mid-20% the last 22 months before things went to crap last month or so. And I just use the standard Bogle 3 fund system.
Now, my brokerage account looks like a slaughtered bull because it's china stocks and a few bios.
Clavell
How long do you want to ignore this user?
AG
Let's just say I don't have to worry about paying extra taxes for this year like I did for 2017.
CapCity12thMan
How long do you want to ignore this user?
AG
October was rough

mazag08
How long do you want to ignore this user?
AG
BlackGoldAg2011 said:

some numbers from my portfolio for the last 12 months.
total annual growth: 15.4%
1 yr IRR: 18%
but i am VERY aggressive in my asset mix. i have about 18% in mid risk technology funds and the rest in individual stocks.
my mutual funds are currently down roughly 6.5% from my basis ( i bought them almost exactly 1 year ago.) at the peak this year, they were up 20-22%.

these are all pre-tax numbers.
You're using xIRR right?
94chem
How long do you want to ignore this user?
I wouldn't even know how to track it. 529 plans, a Roth, other funds, 401(k), dollar cost averaging on everything. I just look at the funds I'm in, and if they have good 5 and 10 year numbers, I stay in them.
claym711
How long do you want to ignore this user?
AG
If theres ever a 5 or 10 year bear or flat market....
TheCougarHunter
How long do you want to ignore this user?
AG
10% for the past 8 years. Vanguard
BlackGoldAg2011
How long do you want to ignore this user?
AG
Correct
schwack schwack
How long do you want to ignore this user?
AG
Quote:

I wouldn't even know how to track it.
Me neither, really. I just know that we have a lot more now than we did when we started.

We pay a financial planner every 2-3 years to look things over & advise. Hourly rate. He's done a good job for us and we got his name from friends that are also happy with his advise. I just don't have desire to spend my life researching. We are long term investors & don't panic.


Edit: Our rental properties are doing about 18% on average.

Tumble Weed
How long do you want to ignore this user?
4.5% YTD as of today in my 401k.

I am not cashing out for another 25 years, so it is easy for me to let it ride.


bjh19
How long do you want to ignore this user?
AG
Quick question: what is the difference between annual rate of return and IRR?
terradactylexpress
How long do you want to ignore this user?
That was the point I was trying to make.
TwoMarksHand
How long do you want to ignore this user?
AG
XIRR:
401k - 8.31%
IRA 1 - 3.25%
IRA 2 - 3.25%
Brokerage - 1.16%

VTSAX has been flat this year.
TwoMarksHand
How long do you want to ignore this user?
AG
bjh19 said:

Quick question: what is the difference between annual rate of return and IRR?
They are the same thing, but XIRR in excel will be better to use if your contributions or additions to your portfolio is at random intervals. Ie. you put in money randomly throughout the year/month instead of say the first of every month.
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.