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If yes, you must have a dire need of cash or why would you incur that capital gain?

If not, why would you care how much OTHER PEOPLE make? If can be 1000% like bitcoin, you were not part of it anyway.

So I don't understand your 20 year performance thing.

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3,943 Posts

Doesn't 100K at 15%/yr for 20 years total 1.6M?That meant your portfolio doubled in value every 5 years for 20 years. So if you started with 100,000k you'd have a cool 800k now. Good job.

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?

I did not realize the OP is 73 years old (Ben, born in 1941?). So maybe he did gain 15% for 20 years... and it is finally time to sell. So not too many posters here have that kind of experience. Kudos.

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366 Posts

Does this account for additional contributions over several occasions in that time or a single lump sum 20 years ago that you've parlayed into 16X the original amount?

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5,513 Posts

15% over 20 years including at least 3 major crashes? Impressive.

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.

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 ?

Future value = Present value * (1+% annual return)^20

With 15% over 20 years, you end up with the Future value = approx 16x present value.

Of course that the simple formula as it doesn't take into account future contributions.

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1,516 Posts

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.

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.

The gain/loss% is a very different figure from the annual average rate of return: it's the difference between the book value and the market value of your investments. At first glance you might be disappointed in 15%, because it makes it sound like you've only made 15% total since 1996. But the book value is not just what you put into your investments out of your own pocket: it also represents any dividends or other income from your investments that you reinvested. So some of your growth is represented in the book value and the rest is represented in the market value.

Personally, I think the gain/loss figure is much more relevant for retirement investments than your annual average rate of return anyway. Who cares what the annual rate was? What you should care about is your total return; in fact the percentage isn't as important as the dollar figure. If you can calculate what your average annual expenses would be in retirement, a portion of that will be funded by your principal, but some of it will be funded by your growth. If you get enough growth to fund at least one year of retirement, that's good. If you get enough growth to fund many years of retirement, even better. I measure my growth in retirement years.

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11,223 Posts

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.

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676 Posts

Since that time I'm up a total of 21.25%.

My annual rate of return (XIRR Excel function, using today as the ending date), is 15.94%.

Anyone interested can follow my monthly updates here: http://canadianmoneyforum.com/showthread.php/16247-Couch-potato-lazy-portfolio-tracking-my-progress.

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676 Posts

Yes.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 ?

If you and your employer

Is it?

TSX 1.2%

S&P 500 3.8%

Dow 3.2%

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78 Posts

I don't know where you took these percents for the indices... http://en.wikipedia.org/wiki/S&P_500

TSX 1.2%

S&P 500 3.8%

Dow 3.2%

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