Thread: Post Your "12-Month Personal Rate of Return"

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 17.35%

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 14.5%. (Your PIP is posted by the 3rd business day of each month.) Last month it was only 5.35%. I dropped August 2013 (-2.76%) and added August 2014 (+4.41%) for a difference of +7.17%. So, you would think that my PIP would be closer to +12.52%. I'm obviously not computing all that goes into it, but I'll take it.

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 21.39%

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 12.9%.

Shew

Originally Posted by MrBowl

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 14.5%. (Your PIP is posted by the 3rd business day of each month.) Last month it was only 5.35%. I dropped August 2013 (-2.76%) and added August 2014 (+4.41%) for a difference of +7.17%. So, you would think that my PIP would be closer to +12.52%. I'm obviously not computing all that goes into it, but I'll take it.

From Tsp.gov:

https://www.tsp.gov/sitehelp/glossar...yOfTerms.shtml

Personal Investment Performance (PIP) — The rate of return earned by your entire account during the 12-month period ending on the date indicated on your annual statement or on your Account Balance page of the TSP website. The PIP is a time-weighted return that has been calculated using a modified-Deitz method (a method used by many financial institutions and an industry standard). The PIP adjusts for the distorting effects of cash flows into or out of your account. It is an estimate; therefore, your PIP may not be the same as the 12-month performance of the TSP funds, which are time-weighted returns.

The Dietz method is a good read, but in depth. You can't just add/subtract performance.

Originally Posted by MrBowl

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 14.5%. (Your PIP is posted by the 3rd business day of each month.) Last month it was only 5.35%. I dropped August 2013 (-2.76%) and added August 2014 (+4.41%) for a difference of +7.17%. So, you would think that my PIP would be closer to +12.52%. I'm obviously not computing all that goes into it, but I'll take it.

For last month's 12 month PIP, you started out in the hole (-2.76%). Depending on what you did last Sept, you probably didn't start out in the hole this month, so your return PIP this month will be better than last month's just based on that. Just assume you are starting every 12 month rolling PIP period with $1000 and add or subtract your monthly gains each month. If you start out in the hole like in Aug of 2013, your PIP will reflect that as you have to make more to get back to zero, which lowers your 12-month PIP. If you started out losing 2% the first month and made 2% the next, you wouldn't be back at $1000, you'd have less, so your 2-month PIP wouldn't be 0%, it would be -0.04%................

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 5.79%.

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 20.75%. Your PIP is posted by the 3rd business day of each month.

Thanks for the info on how the PIP is computed, guys. That makes sense.

Originally Posted by Intrepid_Timer

If you started out losing 2% the first month and made 2% the next, you wouldn't be back at $1000, you'd have less, so your 2-month PIP wouldn't be 0%, it would be -0.04%................

FYI, the way he got that number is by multiplying -2% (0.98) by +2% (1.02), which comes out to 0.9996, or -0.04%.

Your Personal Investment Performance (PIP) for the past 12 months ending 08/31/2014 is 16.16%. (Your PIP is posted by the 3rd business day of each month.)