Thread: Monitoring returns

Take the current balance and subtract 1/2 the amount contributed over whatever period of time you are looking at. Divide this by the initial balance plus 1/2 the amount contributed.

Example: current balance $20,000; amount contributed $5000; initial balance $10000.

So, it'd be $20,000 - $2500 / $10000 + $2500 = $17500 / $12500 = 1.4, which translates to +40%.

Alternatively, you can use Tom's MS Excel spreadsheet. You can also use MS Money, although you have to manually enter the prices every time you update them and buy/sell any shares. I've switched to a static allocation, so it's easier to deal with now - I just have to split up my percentages each time there's a contribution (every two weeks).

Okay, I'm sure I'm an idiot, but what I'm getting at is this. With my VanGuard accounts, I get a simple indication of the % that my account yielded, regardless of how I reallocated them. They just report...."your overall performance for all transactions was 8% (or whatever). Why can't TSP be that simple? Why the need for all the spread sheets and the input of data and the mathematical calculations?

How do you think they came to the% on your statement? I'm guessing there was some math involved.

I agree, it would be nice if TSP did that for us.

tsptalk wrote:

I agree, it would be nice if TSP did that for us.

True, but remember: low overhead charges.

One more try...If I'm way off base here, then all of you can at least give me a bit of credit and marvel at the fact that someone so dense could have the sense to save money at all I do not have access to the spread sheet, I tried it, but could not utilized it on my computer.

Now, if my personal account (regardless of the allocations and without regard to monthly contributions) increased on 4/6 by $400, then can I simply use the following daily calculation......

400 is ________% of ________________(my total balance on 4/5) = my daily percentage of earnings.

Let's say it was .26 for the day, then can I do that calculation daily and multiply by 30 at end of month to get monthly % of overall earnings?
i.e., if the account were to average .26 each day, could you say .26 x 30days = 7.8% return that month?

I was not good in math, be patient with me.

One more try...If I'm way off base here, then all of you can at least give me a bit of credit and marvel at the fact that someone so dense could have the sense to save money at all I do not have access to the spread sheet, I tried it, but could not utilized it on my computer.

Now, if my personal account (regardless of the allocations and without regard to monthly contributions) increased on 4/6 by $400, then can I simply use the following daily calculation......

400 is ________% of ________________(my total balance on 4/5) = my daily percentage of earnings.

Let's say it was .26 for the day, then can I do that calculation daily and multiply by 30 at end of month to get monthly % of overall earnings?
i.e., if the account were to average .26 each day, could you say .26 x 30days = 7.8% return that month?

I was not good in math, be patient with me.

If you are going to use the paper and pencil method, it would probably be a lot easier to take your balance on the last day of each month, subtract out your contributions, and do the math from there. Example: March 31st account balance is $10,000 - Account balance on April 30th is $11,300. You made $300 dollars in contributions that month so your account balance is $1000 higher which is 10% of your March 31st balance. April = 10%.

BTW, there are only 20 or so trading days in a month so be careful if you use your daily method.

Dave

Mr. Wheels (Dave), are you saying that my calculation is valid...except, of course, for figuring in the non-trading days? Thanks for your response.

Well I guess it's valid. You would have to know what day your contribution is being credited to your account so you could subtract it out. It seems so cumbersome. If you could find someone you know, or even someone on this board, to help you get Tom's spreadsheet up and running on your computer, that would make your life a lot simpler.

Dave

Lacy wrote:

One more try...If I'm way off base here, then all of you can at least give me a bit of credit and marvel at the fact that someone so dense could have the sense to save money at all I do not have access to the spread sheet, I tried it, but could not utilized it on my computer.

Here's credit and marvel> The guys asked me to give this to you.

Wheels wrote:

If you are going to use the paper and pencil method, it would probably be a lot easier to take your balance on the last day of each month, subtract out your contributions, and do the math from there. Example: March 31st account balance is $10,000 - Account balance on April 30th is $11,300. You made $300 dollars in contributions that month so your account balance is $1000 higher which is 10% of your March 31st balance. April = 10%.

BTW, there are only 20 or so trading days in a month so be careful if you use your daily method.

Dave

I would make it more accurate by saying only half of the 300 is working for you during the month. This works great for a year also. As your contributions will only be working for you half the time. I really like the quarterly statements at tsp it will tell you what was contributed and what the increase/decrease was during the quarter. I believe daily figuringwhere your at is not good for you as you look at all the wiggles and miss the objective which is long term. Micro-managing to me will get you no where in stocks just like it does in business. To me too many people try to figure out what the lost or gained daily or weekly and not consentrating on what the funds are telling you. Make a move go kiss the wife or hubby and maybe you will get lucky!!