How to Track Previous Portfolio Performance in Keeping Pace with the Market

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lizzy10
Posts: 3
Joined: Fri Apr 21, 2017 5:19 am

How to Track Previous Portfolio Performance in Keeping Pace with the Market

Post by lizzy10 » Fri Apr 21, 2017 5:38 am

Hi,

Brand new to this forum and glad to be here.

In March of 2016, my husband and I consolidated 900K of our IRA assets into a "managed account" (moderate risk category) that I do not believe is doing that well. I know that the equity market has done very well during the past 13 months and that around the time that we liquidated our assets to consolidate, the market was at a low point (Feb 2016). Is there a way to calculate, or track whether nor not our portfolios have kept pace with the market indices for a "moderate" (60/40) portfolio? The accounts are each divided into 14 areas: mutual funds, bond funds, TIPS, iShares & a few index funds. If so, where could I obtain this information? Is there a professional or a software program that could help us with this?

Many thanks in advance.

The account is with TIAA. I am in the process of gathering all the information that is suggested in the "Asking Portfolio Questions" thread and hope to be posting it soon.

The account is "actively managed" and these percentages fluctuate.

IRA assets in a managed account.

Filing Status: M, filing jointly
Debt: None
NY State residence
My age: 64, Husband, 66
Desired AA: 60/40
No contributions being made in either account now, or in the future

Approximately .75 is held in cash reserves to pay the quarterly account fees.
Managed account fee: .75%

My Traditional IRA:
9% Vanguard Short-Term Bond Index Fund ETF (BSV) .07% ER
4% iShares iBoxx High Yield Corp. Bond ETF (HYG) .50% ER
4% iShares Russell 2000 Value Index ETF (IWN) .25% ER
3% iShares Russell Mid-Cap Growth ETF (IWP) .25% ER
8% iShares Russell Mid-Cap Value (IWS) .25% ER
4% Pimco Emerging Local Bond Institutional (PELBX) .90% ER
4% SPDR Dow Jones REIT ETF (RWR) .25% ER
5% iShares MSCI EAFE Small Cap (SCZ) .40% ER
12% TIAA-Cref Bond Index Institutional (TBIIX) 0% ER
10% TIAA-Cref International Equity Index Institutional (TCIEX) 0% ER
5% TIAA-Cref Emerging Markets Equity Index Institutional (TEQLX) 0% ER
11% TIAA-Cref Large Cap Growth Index Institutional (TILIX) 0% ER
12% TIAA-Cref Large Cap Value Index Institutional (TILVX) 0% ER
11% iShares TIPS Bond ETF (TIP) .20% ER

Spouses Traditional IRA

8% Vanguard Short-Term Bond Index Fund ETF (BSV) .07% ER
4% iShares Russell 2000 Value Index ETF (IWN) .25% ER
4% iShares Russell Mid-Cap Growth ETF (IWP) .25% ER
3% Pimco Emerging Local Bond Institutional (PELBX) .90% ER
4% SPDR Dow Jones REIT ETF (RWR) .25% ER
5% iShares MSCI EAFE Small Cap (SCZ) .40% ER
12% TIAA-Cref Bond Index Institutional (TBIIX) 0% ER
10% TIAA-Cref International Equity Index Institutional (TCIEX) 0% ER
5% TIAA-Cref Emerging Markets Equity Index Institutional (TEQLX) 0% ER
4% TIAA-Cref High-Yield Fund Institutional Class (TIHYX) 0% ER
11% TIAA-Cref Large Cap Growth Index Institutional (TILIX) 0% ER
12% TIAA-Cref Large Cap Value Index Institutional (TILVX) 0% ER
7% TIAA-Cref Mid-Cap Value Fund Institutional Class (TIMVX) 0% ER
11% iShares TIPS Bond ETF (TIP) .20% ER

Will be posting my 403B assets in the near future.
Last edited by lizzy10 on Mon May 01, 2017 10:03 pm, edited 2 times in total.

laotzu
Posts: 5
Joined: Fri Apr 08, 2016 3:13 am

Re: How to Track Previous Portfolio Performance in Keeping Pace with the Market

Post by laotzu » Fri Apr 21, 2017 7:08 am

In my slow transition from fully managed to self managed investing, I used to track a monthly spreadsheet comparing my current plan with the theoretical value of my old portfolio. I literally just grabbed the last positions in my fully managed account and assumed no changes, the same rebalancing scheme and full dividend reinvestment. I did this for a year or two before deciding I didn't need it anymore. If you had a few positions, this might work for you.

GLState
Posts: 59
Joined: Wed Feb 15, 2017 10:38 am

Re: How to Track Previous Portfolio Performance in Keeping Pace with the Market

Post by GLState » Fri Apr 21, 2017 7:13 am

Portfolio Visualizer is easy to use to create a benchmark for comparision https://www.portfoliovisualizer.com/ Excel may also be a good choice, but if you want to compare your portfolio to a custom benchmark you would have to find the data for all of the components.

Don't be too quick to jump to conclusions. The US equity markets have done very well since March 2016, but you seem to have a diversified portfolio rather than just US equity. If your portfolio contains foreign equity & TIPS, it is not going to match US equity over this period.
Last edited by GLState on Fri Apr 21, 2017 1:37 pm, edited 4 times in total.

dbr
Posts: 22530
Joined: Sun Mar 04, 2007 9:50 am

Re: How to Track Previous Portfolio Performance in Keeping Pace with the Market

Post by dbr » Fri Apr 21, 2017 7:48 am

If you have contributions or withdrawals you can create a spreadsheet containing a dummy portfolio of the index investments that includes selling and buying and computes internal rate of return to compare to a similar spreadsheet for your actual investments.

Lafder
Posts: 3491
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: How to Track Previous Portfolio Performance in Keeping Pace with the Market

Post by Lafder » Fri Apr 21, 2017 8:10 am

lizzy10,
Welcome here!

I suggest you look for the fees you are paying on your accounts and holdings. They are going to drag down performance quite a bit and are a better measure of the expense you will be paying on your current holdings regardless of market performance.

Consider posting all of your holdings in this format viewtopic.php?f=1&t=6212

That format will help you take a closer look at the fees for each of your holdings as well as any management fees. It was only when I gathered my info in that format that I really took a look at the expenses for each separate holding. And since then I have greatly simplified our holdings to reduce costs and make managing easier.

Once you list holdings, folks here can help you see if your holdings should be matching the market or if there are any concerns or ways to optimize even more.

Lafder

lizzy10
Posts: 3
Joined: Fri Apr 21, 2017 5:19 am

Re: How to Track Previous Portfolio Performance in Keeping Pace with the Market

Post by lizzy10 » Fri Apr 21, 2017 8:08 pm

Thank you all thus far for your prompt responses, the the link for the advice for asking portfolio questions and the Portfolio Visualizer. I have some work to do. I also have additional questions on our situation and will post them when I get my bearings in this forum.

The Portfolio Visualizer looks like a fantastic tool and I will definitely utilize it.

The information provided thus far is invaluable!

pkcrafter
Posts: 11767
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: How to Track Previous Portfolio Performance in Keeping Pace with the Market

Post by pkcrafter » Fri Apr 21, 2017 8:59 pm

Lizzy, where is the managed account?

Posting your information in the suggested format will be very helpful to us and you.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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