How to check annualized return

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lumberingc
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Joined: Tue Apr 07, 2015 11:46 pm

How to check annualized return

Post by lumberingc » Fri Jul 03, 2015 7:04 pm

I have a schwab account for investments. Is there a way to check annualized return or other metrics on performance.

I would be interested in knowing...

1) my historic annualized return for the entire account through the history of the account
2) historic annualized returns for different portions of the account (i.e. fixed income, equities, an individual fund)
3) My annualized return over specific periods...ideally compared to certain benchmarks
4) graphs showing the progress of my account over time

It seems like this is not readily available and is virtually impossible to calculate by hand because I am dollar cost averaging in.

Does anyone know if I can get this information. Does Schwab keep this hidden just so that I won't be disappointed with my return?

Jim180
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Re: How to check annualized return

Post by Jim180 » Fri Jul 03, 2015 7:40 pm

Have you spoken with any Schwab rep for guidance? That would be the most obvious place to start.

sleepysurf
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Re: How to check annualized return

Post by sleepysurf » Fri Jul 03, 2015 7:47 pm

I still have a couple of accounts at Schwab, linked to a (soon to be Ex-) Financial Advisor. The advisor sends me quarterly reports of performance, but no way to really confirm her numbers. I called Schwab and asked why they don't offer cumulative performance metrics on their website. I was told they do offer that feature if you are an individual investor, but it's blocked if the account is associated with an Advisor. They refused to grant me access to that tool as long as the account is associated with an advisor. I'm planning on dumping the Advisor (and Schwab) soon, and moving everything to Vanguard.

livesoft
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Re: How to check annualized return

Post by livesoft » Fri Jul 03, 2015 7:50 pm

If you have access to a Window PC and you want to enter ALL your transactions over time, then I can recommend the free program MS Money. It can do those things for you, but it will take some work on your part entering the data.

Here is a link to the download url: http://www.microsoft.com/en-us/download ... x?id=20738
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Taylor Larimore
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Return and Risk

Post by Taylor Larimore » Fri Jul 03, 2015 7:50 pm

How to check annualized return?

lumberingc:

Never forget the other side of investing -- risk of loss.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Tortuga
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Re: How to check annualized return

Post by Tortuga » Fri Jul 03, 2015 8:13 pm

lumberingc:

If you are comfortable using a computer spreadsheet I recommend the model designed by Boglehead longinvest

https://www.bogleheads.org/forum/viewtopic.php?t=150025

Tortuga

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Bogle_Feet
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Re: How to check annualized return

Post by Bogle_Feet » Sat Jul 04, 2015 5:20 am

lumberingc wrote:I have a schwab account for investments.

What are the funds?

pshonore
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Re: How to check annualized return

Post by pshonore » Sat Jul 04, 2015 8:22 am

If you're comfortable with spreadsheets (Excel, Google, etc) you can use the XIRR function to calculate the return for just about any period you want. Of course you will have to enter all inflows and outflows if you want an accurate number. Once you set it up, it is easy to maintain. You can ignore reinvested dividends (assuming they show up in your total account value(s) which simplifies things somewhat.

longinvest
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Re: How to check annualized return

Post by longinvest » Sat Jul 04, 2015 8:59 am

pshonore wrote:If you're comfortable with spreadsheets (Excel, Google, etc) you can use the XIRR function to calculate the return for just about any period you want. Of course you will have to enter all inflows and outflows if you want an accurate number. Once you set it up, it is easy to maintain. You can ignore reinvested dividends (assuming they show up in your total account value(s) which simplifies things somewhat.

XIRR computes an internal rate of return, often called investor return. As explained in wiki:Calculating personal returns, this number represents how well the portfolio has been doing for the investor while taking into account the specific timing of contributions and withdrawals.

If the objective is to compare the past performance of the portfolio over a specific time period to widely available index and mutual fund returns or to the performance of an another portfolio, then one needs to compute the portfolio return over that specific time period.

Investor and portfolio returns can significantly differ. So, the distinction between them cannot be dismissed as unimportant.

The wiki's spreadsheet calculates both investor and portfolio returns.
Bogleheads investment philosophy | Lifelong Portfolio: 25% each of (domestic/international)stocks/(nominal/inflation-indexed)bonds | VCN/VXC/VAB/ZRR

frugalmeister
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Re: How to check annualized return

Post by frugalmeister » Sat Jul 04, 2015 9:14 pm

From your Schwab account page, go to the "Account " tab then "portfolio performance". You can there create the specific portfolios that you wish to analyze such as "Taxable", "retirement", "ESA", or whatever you want to call them. Click on the "Rate of Return" drop down box and select which portfolio you want to look at. You will be able to get annualized performance based on personal rate of return as well as a time weighted rate of return, and much more. Here you will be able to review the custom time frames if you wish. Asset class performance is also available in the portfolio performance section. I think you will find most of what you are looking for right there. Your individual fund returns may need to be found at "Accounts"..."Positions"....then "realized" or "unrealized" gain/loss. Happy analyzing.

lumberingc
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Re: How to check annualized return

Post by lumberingc » Mon Jul 06, 2015 12:30 am

Bogle_Feet wrote:What are the funds?


SCHF
SWPPX
SWSSX
SWLBX

lumberingc
Posts: 190
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Re: How to check annualized return

Post by lumberingc » Mon Jul 06, 2015 12:48 am

frugalmeister wrote:From your Schwab account page, go to the "Account " tab then "portfolio performance". You can there create the specific portfolios that you wish to analyze such as "Taxable", "retirement", "ESA", or whatever you want to call them. Click on the "Rate of Return" drop down box and select which portfolio you want to look at. You will be able to get annualized performance based on personal rate of return as well as a time weighted rate of return, and much more. Here you will be able to review the custom time frames if you wish.


ok great; This actually was not there previously, but I contact schwab, and they were able to "turn this feature on" for me. It's interesting that they would conceal the rate of return. Perhaps people become dissatisfied because they have unrealistic expectations like a consistent 15% annualized return

frugalmeister wrote:Asset class performance is also available in the portfolio performance section. I think you will find most of what you are looking for right there. Your individual fund returns may need to be found at "Accounts"..."Positions"....then "realized" or "unrealized" gain/loss. Happy analyzing.


Thank you so much. You are the man.

As a side note, I don't really intend on actually doing any "analyzing." I'm certainly not going to make any change in my decisions with this information. I just like the idea of being able to see the numbers

lumberingc
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Joined: Tue Apr 07, 2015 11:46 pm

Re: Return and Risk

Post by lumberingc » Mon Jul 06, 2015 12:50 am

Taylor Larimore wrote:
How to check annualized return?

lumberingc:

Never forget the other side of investing -- risk of loss.

Best wishes.
Taylor


I am well aware of the risk of loss, and I did not mean to imply that return must be a positive number.

lumberingc
Posts: 190
Joined: Tue Apr 07, 2015 11:46 pm

Re: How to check annualized return

Post by lumberingc » Mon Jul 06, 2015 12:51 am

sleepysurf wrote:I still have a couple of accounts at Schwab, linked to a (soon to be Ex-) Financial Advisor. The advisor sends me quarterly reports of performance, but no way to really confirm her numbers. I called Schwab and asked why they don't offer cumulative performance metrics on their website. I was told they do offer that feature if you are an individual investor, but it's blocked if the account is associated with an Advisor. They refused to grant me access to that tool as long as the account is associated with an advisor. I'm planning on dumping the Advisor (and Schwab) soon, and moving everything to Vanguard.


FYI, I was able to get this information (I am not associated with an advisor)

-lumbering

lumberingc
Posts: 190
Joined: Tue Apr 07, 2015 11:46 pm

Re: How to check annualized return

Post by lumberingc » Mon Jul 06, 2015 12:53 am

By the way, to those who gave information on how to calculate this myself, I appreciate the responses, but I am not willing to put in the effort in order to do this even though I am quite comfortable using excel and doing calculations for return by hand. This just works out to be extremely complicated when you are dollar cost averaging into the market over a long period of time, and I am sure schwab's software can do it instantaneously with perfect accuracy

lumbring

frugalmeister
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Joined: Sat Feb 02, 2013 11:37 am

Re: How to check annualized return

Post by frugalmeister » Mon Jul 06, 2015 7:55 pm

lumberingc wrote:
As a side note, I don't really intend on actually doing any "analyzing." I'm certainly not going to make any change in my decisions with this information. I just like the idea of being able to see the numbers


Same here. I'm glad you found what you were looking for through your Schwab account features.

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