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Investing/Strategies / Retirement Investing
|Subject: Re: Determining Annualized rate of return for Po||Date: 1/3/2005 12:51 PM|
|Author: JAFO31||Number: 43845 of 74513|
Fletch52: "I have a question that I have not seen answered on these boards previously and as 2004 has just ended I think it is timely.
For those who contribute to their investments monthly and maybe with a lump sum tossed in here and there, can your investment broker provide you with an annualized rate of return?"
Just do what the Beardstown Ladies did; ignore ongoing contributions and calculate annual gain by using year-end balances. You too might get a book published and make some more money.
(to do the calculation properly, you need to calculate for each period between contributions, and then annualize to a CAGR; if ammounts and periods are irregular, then the math gets to be a PITA)
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