Easy Rhino wrote:huh, Quicken tells me the IRR was 17.36%.
But I'm not sure if I trust it. For instance, Quicken said my 401k's IRR was 19%, when Prudential said it was only 14.5%.
If you care about an accurate IRR, do not blindly trust Quicken. I spent 3 days poring through my data with wildly changing results before I was confident it was accurate. Here's a few things I learned (this applies to the latest Quicken 2013 R10 but likely to older versions as well):
1. Backup, then run a "validate and repair" on your quicken file (select validate file and rebuild investing lots). I found an error that impacted my calculated 2012 IRR.
2. For each security in your portfolio, you need to be careful to have the proper closing prices recorded (in Price History) on Dec 30th (2011) and Dec 31st (2012) as those are the key dates that Quicken will use for many IRR calculations for calendar year 2012. This is especially important for any manually updated accounts as the quotes won't have been automatically downloaded and you're unlikely to have entered them manually if you didn't have transactions on those dates.
3. For manual accounts, you also need to make sure that any buy and sell transactions have the proper corresponding prices recorded on those dates.
4. Run the Investment Performance report. Make sure to choose last year (2012) and then edit the included securities manually to select only your retirement-related accounts (assuming that what you're trying to establish an IRR for.) Subtotal by Account or Security and compare each one to their related benchmarks or your financial institution's numbers. Look for any outliers and dig in deeper to see if it's truly an IRR difference or an unresolved anomaly.
5. In particular, make sure conversions and rebalances are handled properly. I had several issues that I only discovered when I went through each account with a fine tooth comb and inspected transactions. I had some Investor --> Admiral Shares conversions that had been automatically treated as "bought" and "sold" transactions which impacted my IRR significantly. Once I altered them to be "add" and "remove", the numbers came into line.