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<<<<The initial Rollover value was approximately 30k in 1997 and it is now close to 70k in 2000. Now to the "novice investor" (which I am), that appears to be a fairly decent rate of return considering I haven't contributed a dime since rolling it into an IRA. My concern however is that I may not be getting the maximum "bang for my buck". Should I be considering other funds available through Fidelity or just hold on to what I have?>>>>

"OK, I'm no Peter Lynch, but by my calculations that is a 133% increase in three years. 44% per year."

It may be 133% in 3 years, but it is more like 33% (or just under) CAGR, not 44%. For a seat of the pants justification:

Start year 1 - 30,000
End year 1 - 30,000 + 10,000 = 40,000
End year 2 - 40,000 + 13,300 = 53,300
End year 3 - 53,300 + 17,700 = 71,000

IMO, it is important to understand CAGR and how compounding really works. I am also sure that JABoa could recite the formula, or has already discussed it on the Math board.

44% per year would be a substantially larger amount.

Just my $0.02. Regards, JAFO

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