YA 401k T: What is my rate of return?

[JEDI]

Lets say from 1994 to 2004, i put in $10k/yr in my 401k, so $100k.
Lets also say i put in $2000/yr in my roth since it was created in 1998 till 2006, so $16k.

Lets say on Dec 31, 2006 i had $225k.

What was my rate of return since 1994?

 

[PAB]

Originally posted by: JEDI
Lets say from 1994 to 2004, i put in $10k/yr in my 401k, so $100k.
Lets also say i put in $2000/yr in my roth since it was created in 1998 till 2006, so $16k.

Lets say on Dec 31, 2006 i had $225k.

What was my rate of return since 1994?

7.15% annuallized growth

 

[JS80]

Originally posted by: PAB

Originally posted by: JEDI
Lets say from 1994 to 2004, i put in $10k/yr in my 401k, so $100k.
Lets also say i put in $2000/yr in my roth since it was created in 1998 till 2006, so $16k.

Lets say on Dec 31, 2006 i had $225k.

What was my rate of return since 1994?

7.15% annuallized growth

wow, you're in some shvtty funds.

 

[senseamp]

Let's see.
10*sigma(r^k,k=2...12) + 2*sigma(r^k,k=0...8) = 225
=10*sigma(r^k,k=0...12) - 10 - 10*r + 2*sigma(r^k,k=0...8) = 225
=10*(1-r^13)/(1-r) - 10 - 10*r + 2*(1-r^9)/(1-r) = 225
You need to solve for r and subtract 1 to find rate of return.

10*(1-1.084^13)/(1-1.084) - 10 - 10*1.084 + 2*(1-1.084^9)/(1-1.084)=225
So your rate of return is about 8.4%, assuming contribution made at the end of the year.

7.35% if contribution made at the beginning of the year. Similar calcluation, just need to add one more year to all the interests and resolve for r.
10*sigma(r^k,k=3...13) + 2*sigma(r^k,k=1...9) = 225
r=1.0735, so rate of return is 7.35%

 

[RaistlinZ]

I think the OP is looking for someone to do his homework questions for him.

 

[Dr. Detroit]

COMPUND INTEREST CALCULATOR

Easy to use tool if MS Excel is not your thing!!!

 

[Orsorum]

7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

 

[PAB]

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

 

[bennylong]

7%??? WTH are you investing in??? You're getting PWNED or JOOO as the kids would say.

 

[Schfifty Five]

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

From all your false insurance claims?

 

[JEDI]

2000-2002 were BAD years

"Lets say from 1994 to 2004, i put in $10k/yr in my 401k, so $100k.
Lets also say i put in $2000/yr in my roth since it was created in 1998 till 2006, so $16k. "

If you invested that only in a s+p 500 index (ie: Vanguard's vfinx), what % return would you get?

VFINX returns

 

[PAB]

Originally posted by: Schfifty Five

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

From all your false insurance claims?

What is it with you assholes?

I'm in the stock market you ass.

 

[Jadow]

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

No, 7% isn't abyssmal for the time period in question.

 

[thomsbrain]

Originally posted by: PAB

Originally posted by: Schfifty Five

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

From all your false insurance claims?

What is it with you assholes?

I'm in the stock market you ass.

the stock Dodge Neon market?

 

[senseamp]

7% is better than what you would have gotten from that ING Direct account that people on this forum seem to be drooling over.
You did OK.

 

[crystal]

People only looks at the good time and forgot the bad time. The tech. crashed and the downward trend after 9/11. I think you did very well.

 

[K1052]

Originally posted by: senseamp
7% is better than what you would have gotten from that ING Direct account that people on this forum seem to be drooling over.
You did OK.

ING/Citi/Emirgant are good places to park cash reserves rather then letting it languish in regular checking and savings accounts at absurdly low rates.

I don't recall anyone seriously suggesting that as a good choice for long term investing.

 

[bennylong]

Or did people forget that 1994 to 1998 was one of the biggest bull market in history. The bear market of 2000 to 2002 was followed by a bull market from 2003 to present.

 

[mugs]

Originally posted by: PAB

Originally posted by: Schfifty Five

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

From all your false insurance claims?

What is it with you assholes?

I'm in the stock market you ass.

Congratulations on your 7%. You can use that $5 to buy yourself a sandwich at Subway.

Or do your mommy and daddy pay for your food while you're mooching off them?

 

[mugs]

Originally posted by: thomsbrain

Originally posted by: PAB

Originally posted by: Schfifty Five

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

From all your false insurance claims?

What is it with you assholes?

I'm in the stock market you ass.

the stock Dodge Neon market?

BURN! :laugh:

 

[PAB]

Originally posted by: Jadow

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

No, 7% isn't abyssmal for the time period in question.

Yes, it is. There was a strong runup, a crash and the stock market has done very well since 2002. 2006 was a red letter year for the market.

Annualized returns are an average, and 7% is poor for a growth portfolio since I can make 7% annualized in a bond fund.

Originally posted by: thomsbrain

Originally posted by: PAB

Originally posted by: Schfifty Five

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

From all your false insurance claims?

What is it with you assholes?

I'm in the stock market you ass.

the stock Dodge Neon market?

When the price is right.

Originally posted by: mugs

Originally posted by: PAB

Originally posted by: Schfifty Five

Originally posted by: PAB

Originally posted by: Orsorum
7.349243%, assuming all contr'ns made at the beginning of each year, and compound interest.

I rounded down but the better nerds made a fool of me.

Seriously, 7% annualized is abysmal. You need some better funds.

I'm up 7% since NOVEMBER.

From all your false insurance claims?

What is it with you assholes?

I'm in the stock market you ass.

Congratulations on your 7%. You can use that $5 to buy yourself a sandwich at Subway.

Or do your mommy and daddy pay for your food while you're mooching off them?

Its more than $5. I'd be happy to pwn you with a copy of ye olde portfolio screenshot.

 

[mugs]

Originally posted by: PAB
Its more than $5. I'd be happy to pwn you with a copy of ye olde portfolio screenshot.

Go ahead, you'll only be embarrassing yourself.

 

[IntrinsicValue]

I'm not sure where this 7.35% return is coming from, but from my calculations your annual rate of return is closer to 12% -- unless I mis-read your question.

Not bad for conservative investments.

 

[PAB]

Originally posted by: IntrinsicValue
I'm not sure where this 7.35% return is coming from, but from my calculations your annual rate of return is closer to 12% -- unless I mis-read your question.

Not bad for conservative investments.

Bonds are conservative, he's holding equities.

 

[Engineer]

Historical "limits" (not counting employer matches) for 401k...

(I'm assuming, based on the below numbers, that your 10k, especially before 1998, each year included employer matches).

2006 $15,000
2005 $14,000
2004 $13,000
2003 $12,000
2002 $11,000
2001 $10,500
2000 $10,500
1999 $10,000
1998 $10,000
1997 $ 9,500
1996 $ 9,500
1995 $ 9,240
1994 $ 9,240
1993 $ 8,994
1992 $ 8,728
1991 $ 8,475
1990 $ 7,979
1989 $ 7,627
1988 $ 7,313
1987 $ 7,000