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Serenity now! |
When looking at my 401k, I see a rate of return listed for the last 12 months. Does that percentage include the money I contribute to the account, or only the interest accrued? Ladies and gentlemen, take my advice - pull down your pants and slide on the ice. ʘ ͜ʖ ʘ | ||
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Member |
That’s a good question to ask the company that manages the accounts for your company. I would assume it includes contributions - makes it look better that way. I'm sorry if I hurt you feelings when I called you stupid - I thought you already knew - Unknown ................................... When you have no future, you live in the past. " Sycamore Row" by John Grisham | |||
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Member |
It should reflect the income and gain/loss earned on the invested capital. Your contributions and matching contributions represent additional invested capital. Your statements should have footnotes that indicate the way it's computed. Place your clothes and weapons where you can find them in the dark. “If in winning a race, you lose the respect of your fellow competitors, then you have won nothing” - Paul Elvstrom "The Great Dane" 1928 - 2016 | |||
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His Royal Hiney |
Any rate of return calculated will only be based on the interest/capital gains accrued and would not count the money you contribute. The money you contribute is part of the cost basis. Let's take an extreme case. Let's say you put a $100 in. Sometime before the period, you put another $100. But your 401k sucks and you didn't earn anything at all or gained anything so you end the period at $200. The rate of retun will be listed as 0% and not 100%. "It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946. | |||
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Lost |
That's actually a tricky question. There's two basic ways to calculate return on contributory investment accounts, in which you're adding money in even as it grows (or shrinks). Here's an article that might help on dollar-weighted vs. time-weighted performance. Personal Rate of Return: Dollar Weighted Or Time Weighted | |||
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Member |
This is the way Fidelity lists their performance. ------------------ Eddie Our Founding Fathers were men who understood that the right thing is not necessarily the written thing. -kkina | |||
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