I think your math makes more sense... this also means, for 100k, there will be $1.5M in capital gain tax to lose. It hurts but it is a good problem to have.Doesn't 100K at 15%/yr for 20 years total 1.6M?
If you had an average 15% annual return (assuming compounded if you aren't taking money out), over 20 years you use the simple formula:lightcycle, how did you come up with 16X ?
Okay, that makes more sense: I think what you're reporting is your total Gain/Loss percentage since the beginning, not your annual average rate of return.lightcycle, how did you come up with 16X ?
May be I mislead you people. The figure I got is from the summery of my self-directed plan, 14.8% since inception (1996). I contribute to RRSP each January and bought stocks and held. That goes on for 15 years until I retired.
I suspect this is portfolio gain which incorporates contributions, but is not investment returns. If so, the figure is meaningless to anyone other than the OP.May be I mislead you people. The figure I got is from the summery of my self-directed plan, 14.8% since inception (1996). I contribute to RRSP each January and bought stocks and held. That goes on for 15 years until I retired.
Yes.Hmmm... I am getting real confused now. I really need help to understanding this. Just checked my account performance summery. Average since inception (1996), my account-14.8%, while S&P/TSX omposite-8.63% and S&P500-6.83%. Year to date is 7.83%, last 12 months is 20.66% and last 3 years is 8%. And, a few from the prior year average: 1996 +41%, 1997 +55%, 1999 +20%, 2005 +33%, 2007 -8.0%, 2008 -32% and 2009 +61%. In between are single digit gains and loses. I guess the number 14.8% is the sum of these prior years divided by 18 years of my plan. What are all these mean ? Let's look at the number of the last 12 months which I did not contribute. Is that mean this 20.66% is the total gain from the principal ? Say, 100k a year ago would become 120k ?
I don't know where you took these percents for the indices... http://en.wikipedia.org/wiki/S&P_500I have been tracking my portfolio (professionally managed) since the summer of 2006. It is 60% equities (mostly Canadian) and 40% bonds. I have an annual compounded return of 5.6%. And , yes, I do control for monies added and there have been no withdrawals. I think this is pretty good as the returns for the equivalent period for the indices are:
S&P 500 3.8%