tag:blogger.com,1999:blog-14245531.post6369902876138851529..comments2024-06-07T14:40:45.763-04:00Comments on My Open Wallet: E*Trade Investment GainsMadame Xhttp://www.blogger.com/profile/11536189690094235926noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-14245531.post-6182671524390036172010-11-19T17:10:24.053-05:002010-11-19T17:10:24.053-05:00I have to agree with your concluding statement. I ...I have to agree with your concluding statement. I think that you have done much better than others in this tough economy. I recently started with some <a href="http://firstrade.com/content/en-us/trading/stocks" rel="nofollow">stock trading</a>, in order to diversify my portfolio, can't wait to see the growth. This post is inspiring! Thanks for sharing.Brian Gagnonhttps://www.blogger.com/profile/12178017432399099643noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-3195149011175978682010-11-17T14:14:15.744-05:002010-11-17T14:14:15.744-05:00Armed with XIRR and Yahoo's historical quotes ...Armed with XIRR and Yahoo's historical quotes (finance.yahoo.com), you can then compare your portfolios performance against a few bench marks for those exact time period. From 1/1/2001 to 11/1/2010, the S&P500 (SPY) returned 1.1% and the Dow (DIA) returned 2.72%. Your portfolio has achieved the much sought after market beating performance. Congratz!Jackiehttps://www.blogger.com/profile/05523885546637131223noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-84196518940687866112010-11-11T14:37:55.152-05:002010-11-11T14:37:55.152-05:00Reading through this article and seeing those gain...Reading through this article and seeing those gains is a prime example of how a great deal of society has the ability to put some money aside to invest in order to save for the future.Your Own Retirementhttp://www.yourownretirement.comnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-5557896308809008452010-11-09T20:18:01.500-05:002010-11-09T20:18:01.500-05:00Great post. Interesting formula.Great post. Interesting formula.Joshhttp://www.BecomingYourOwnBank.comnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-34010730627165021622010-11-06T19:14:44.742-04:002010-11-06T19:14:44.742-04:00In my mind, the E*Trade approach to including rein...In my mind, the E*Trade approach to including reinvested dividends in the cost basis is correct. You paid taxes on those dividends at your marginal tax rate and you could have taken the money out and spent it. And when you ultimately close your long positions, you won't be taxed on the dividends again, only capital gains on any growth since.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-4392032371523290192010-11-05T14:28:44.305-04:002010-11-05T14:28:44.305-04:00Great way to analyze it. Way to go Madame X. I agr...Great way to analyze it. Way to go Madame X. I agree w/ David no need to worry about feesL. Marie Josephhttp://firstgenerationwhitecollar.com/blog/noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-5508888079182690322010-11-03T06:44:59.413-04:002010-11-03T06:44:59.413-04:00A follow-up to the XIRR. While the statistics are...A follow-up to the XIRR. While the statistics are great, the average person doesn't really care. I research the heck out of mutual funds to get the best rate of return, so I'm a bit of an enthusiast. Using complicated formulas doesn't focus on the root of your goal, which is saving money. That 10K average return value they use is very important. You can put any number you want in there, the point is when you research mutual funds you should look at funds that have been open for at least 10 years and have an average rate of return of greater than 8%. That's it. Don't worry about fees and loads (although no-loads can net you good returns.) Some years will be negative, but the following two years will be huge positives. Even with the economic downturn in 2008 and 2009, your new contributions at that time has netted you %15 gains 2010 year to date in the S&P 500. Just hold on.David M. Borowskihttp://www.thefamilyfinanceguide.comnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-51909732364703689962010-11-03T06:36:56.652-04:002010-11-03T06:36:56.652-04:00This is a pretty slick post. Simple math is a gre...This is a pretty slick post. Simple math is a great tool. As long as the balance is always higher than the total you contributed you are winning. Divide the balance by the contribution and subtract 1. You either get a positive or negative percentage. If the percentage is not what you are hoping for, then look around for different investment vehicles (i.e. different mutual funds). <br /><br />Madame X example: Balance = $49,770, Contribution = $33,875. Balance divided by Contribution = 1.47. 1.47 - 1 = .47 which means a positive percentage growth of 47% since inception. Now if you divide that 47 by the total years the account has been open (lets assume 6 years) then its like having a 7.8% growth rate per year. If you the years was 10, then its only a 4.7% return and Madame X may want to look for better vehicles. The key is to keep contributing as Madame X is doing. Great BLOG!David M. Borowskihttp://www.thefamilyfinanceguide.comnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-84864611526649852012010-11-02T18:36:29.593-04:002010-11-02T18:36:29.593-04:00I was going to mention the XIRR formula in Excel, ...I was going to mention the XIRR formula in Excel, but it seems like somebody beat me to it. I wrote a post a while back about <a href="http://pfstock.blogspot.com/2007/04/calculating-rate-of-return.html" rel="nofollow">calculating rate of return</a> that actually references a post on Fat Pitch Financials where George discusses XIRR.<br /><br />It is correct to say that the last number in the series is the current value of your account. The only other thing you might want to add to your spreadsheet is the effect of taxes. If you had to pay taxes (on capital gains distributions or dividends), you would enter that as a negative number.pfstockhttps://www.blogger.com/profile/16235204038486228085noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-20523541143217365252010-11-02T17:04:19.449-04:002010-11-02T17:04:19.449-04:00And I meant to also say THANKS! I'm going to b...And I meant to also say THANKS! I'm going to be playing with that formula a lot!Madame Xhttps://www.blogger.com/profile/11536189690094235926noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-19447239323055117162010-11-02T16:37:00.139-04:002010-11-02T16:37:00.139-04:00Interesting, I've never used that formula! I t...Interesting, I've never used that formula! I tried it with these values, but is it correct to just have the last number in the series be the current value?<br /><br /> <br />1/1/2001 -1100<br />8/1/2002 -600<br />9/1/2002 -329<br />12/1/2002 -675<br />12/1/2002 -2700<br />1/1/2003 -2000<br />2/1/2003 -500<br />10/1/2003 -3000<br />1/1/2004 -944<br />3/1/2004 -7200<br />7/1/2004 -2000<br />7/1/2004 -2200<br />7/1/2004 -2800<br />1/1/2005 450<br />11/1/2005 8033<br />2/1/2006 1099<br />4/1/2006 5054<br />4/1/2006 4096<br />4/1/2006 6352<br />10/1/2007 196<br />5/1/2008 -2715<br />3/1/2009 161<br />9/1/2009 -4000<br />9/1/2009 -553<br />10/1/2010 -26000<br />11/1/2010 49779<br /> <br /> Return 11.84%Madame Xhttps://www.blogger.com/profile/11536189690094235926noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-37392380369926024392010-11-02T15:55:44.592-04:002010-11-02T15:55:44.592-04:00Get a swag of your annual rate of return with the ...Get a swag of your annual rate of return with the XIRR formula in Excel. List out your cash contributions as negative values, and anything you withdrew as a positive value (and the current value as a positive). Add a second column with the dates related to each of these values. Then use =XIRR and voila, a time-adjusted return!Liznoreply@blogger.com