Personal Rate of Return - Annualized?

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Personal Rate of Return - Annualized?

Postby bluesun » Fri Dec 21, 2012 12:55 pm

Is the Personal Rate of Return that Vanguard gives you annualized?

For instance, Vanguard gives me something like:

5-year personal rate of return: 5%
3-year personal rate of return: 4%
1-year personal rate of return: 10%

Are the 3 and 5-year numbers annualized or does it mean I've only made 5% total over 5 years?
bluesun
 
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Re: Personal Rate of Return - Annualized?

Postby livesoft » Fri Dec 21, 2012 1:04 pm

They are annualized.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Personal Rate of Return - Annualized?

Postby bluesun » Fri Dec 21, 2012 1:05 pm

livesoft wrote:They are annualized.


Great, thanks for the quick response. Makes me feel better about my 5-year performance. :)
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