"Walter_Slipperman" <WalterS@[EMAIL PROTECTED]
> writes:
> Here is what he re****ted to us:
> Aug 99 to Dec 99 = 17.34%
> 2000 = 4.33%
> 2001 = 0.02%
> 2002 = -1.39%
> 2003 = 15.91%
> 2004 = 11.76%
> 2005 = 6.28%
> 2006 = 13.23%
> 2007 = 2.30%
> Is this a reasonably well managed ****tolio over this time period? I
> am aware that I asked him to invest this somewhat conservatively so
> does this seem about right?
Hard to say, but the raw numbers look quite good.
Some basis for comparison: in 2002, the S&P500
took a nosedive down by 22%. You hardly got
touched. in 2003, the S&P500 shot up by about
30% - you captured half of that upside. Your
overall average over that period of time was
quite a bit better than an S&P500 index fund.
At a quick guess, you could probably have gotten
very close to the same performance with a simple
****tfolio made up of half a total-market index
and half an investment-grade short to mid-term
bond fund. Which, actually, is a remarkably
decent ****tfolio. (The 50/50 ****tfolio I just
described, implemented using Vanguard retail
funds, rebalanced on Dec 31 each year, gets
you an average return from 99-07 of 5.06%, with
a 7.43% loss in '02 and losses of about a
percent each in '00 and '01 -- way way tamer
than the total market alone - and also slightly
better returns during that period - the total
stock market fund averaged 4.5% over those 9 years).
> I just don't know if the performance of the ****tfolio is particularly
good
> and whether it is worth paying him the 1% per year for his performance.
> Where can I check numbers to see what a pretty conservative ****tfolio
should
> have done in the period from August 1999 to the present?
I just ran the numbers above (the two-fund, once/yr
rebalanced ****tfolio) by copying a few numbers off
of the Vanguard website into a spreadsheet. That help?
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators
strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM
THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on
the
Newsgroup.
|
