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Investing/Strategies / Retirement Investing
|Subject: Re: Poll: Did your 401k recover from the 2008 de||Date: 12/27/2010 6:12 PM|
|Author: madbrain||Number: 67963 of 74759|
The formula I use to calculate my rate of return in my spreadsheet is as follows :
=100*(annual market value change/(starting balance +(personal contributions+employer match)/2))
This is the way I account for the fact that the contributions are made throughout the year - I count the return on half the contributions. It may not be very conventional or accurate. But I think it's good enough for me because I actually try to spread the contributions continue all the way to the last few payrolls of the year to maximize the per-paycheck match. Otherwise I have to wait until april of the next year to get the match true-up, and only get the true-up if I am still with the employer as of 12/31 .
What formula would you use to compute the return ?
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