2014 fund returns

[disneysteve]

I don't think anyone has started a thread yet to discuss their 2014 investment results. So here it is. How did everyone make out?

My funds ranged from a low of -4.17% (VTIAX) to a high of 30.18% (CSRSX ). Only one funds had a down year. The rest were nicely positive.

For those who took a really simple approach and just bought an S&P 500 index fund, you made out well with a 13.63% return for Vanguard's VFINX.

[txmom842]

Great job DisneySteve! What was your overall portfolio return for 2014??

Ours was a measly 7.67%. We lost so much back in 2008 that we decided to let a professional take over the management of our retirement assets. I believe we are too conservatively invested based for on our ages (36 & 38). Although we had a positive return net of fees, I think we could be doing better.

[disneysteve]

Great job DisneySteve! What was your overall portfolio return for 2014??

Ours was a measly 7.67%.

I didn't answer this question earlier because I didn't yet know the answer.

I sat down today to review everything from 2014.

For the year, our entire portfolio was up 9.78%. This includes new contributions, investment gains and losses, debt repayment, and other money spent, especially starting to draw from DD's 529 account.

All things considered, I don't think that's bad at all. We withdrew $16,895 from the 529. If I back that out, the overall return rises to 12.15%. I certainly wouldn't be upset to see numbers like that every year.

How did everyone else make out?

[rennigade]

My investments/retirement grew 8.45%

My wife's investments/retirement grew 9%

Im pleased with those returns and would happily take them every year!

[scfr]

For the year, net worth increased 7.8%. If you remove non-financial assets (house & cars) from the spreadsheet, financial "portfolio" increased 9.1% for the year. The increase was more than our earned income. New savings were much more important than any individual fund return. *Knock wood* we are still on track to meet our retirement goal even if circumstances cause our finances to go off track for awhile.

[disneysteve]

The increase was more than our earned income. New savings were much more important than any individual fund return.

These two statements seem contradictory. If the increase exceeded your income, wouldn't that suggest that investment returns were responsible for more of the increase than new savings?

[scfr]

These two statements seem contradictory. If the increase exceeded your income, wouldn't that suggest that investment returns were responsible for more of the increase than new savings?

Yes and no. For the single year of 2014, yes, investment returns (including interest earned) was more than earned income and therefore was a bigger contributor for the year. But for our overall long-term financial health, new savings have been the biggest contributor. Our mutual fund gains were modest in 2014 (the highest was 9.9% and there was plenty below that including savings at 0.9-1%). A more accurate statement is that the cumulative effect of years (actually, decades) of savings is more important than hitting a hot single-year return on an individual fund.

[disneysteve]

A more accurate statement is that the cumulative effect of years (actually, decades) of savings is more important than hitting a hot single-year return on an individual fund.

Can't argue with that.

You might want to take a good look at your funds though. If your best in 2014 was 9.9%, you underperformed the S&P 500 by 3.73%. That's a pretty big gap, not that there's anything wrong with making 10% on your money, but nearly 14% is even better.

[scfr]

Can't argue with that.

You might want to take a good look at your funds though. If your best in 2014 was 9.9%, you underperformed the S&P 500 by 3.73%. That's a pretty big gap, not that there's anything wrong with making 10% on your money, but nearly 14% is even better.

Thanks, but we're cool with what we have. Most of our fund investments are in conservative balanced funds.

[disneysteve]

Thanks, but we're cool with what we have. Most of our fund investments are in conservative balanced funds.

I certainly don't know your allocation. Balance funds obviously aren't designed to perform the same way that 100% stock funds are. Like I said, nothing wrong with making 10% on your money. I'd take that every year for sure from any fund.

[scfr]

Balance funds obviously aren't designed to perform the same way that 100% stock funds are.

Yes I know, and that is why we are invested in them. I'm able to look at the big investment picture (e.g., index stock funds are down this year but index bond funds are up and the overall picture is OK) but my husband isn't. Since we shifted to balanced funds many years ago, I no longer have to talk him off of the ledge when one fund shows a short-term loss. So conservative Vanguard balanced funds it is. It's an investment strategy we can both agree on. Marital harmony = priceless.

[disneysteve]

Yes I know, and that is why we are invested in them. I'm able to look at the big investment picture (e.g., index stock funds are down this year but index bond funds are up and the overall picture is OK) but my husband isn't. Since we shifted to balanced funds many years ago, I no longer have to talk him off of the ledge when one fund shows a short-term loss. So conservative Vanguard balanced funds it is. It's an investment strategy we can both agree on. Marital harmony = priceless.

That's a great solution.

[keelerjr12]

2014 IRR: 7.5%

Was in VFFVX (VG Target Retirement 2055) for the last few years, but started off 2015 by moving to VTSAX (80%, Total Stock Market Index) and VGTSX (20%, Total International Stock Index). Figured I didn't need the bonds or cash at this stage.

[JodieWRoberts]

I don't think anyone has started a thread yet to discuss their 2014 investment results. So here it is. How did everyone make out?

My funds ranged from a low of -4.17% (VTIAX) to a high of 30.18% (CSRSX ). Only one funds had a down year. The rest were nicely positive.

For those who took a really simple approach and just bought an S&P 500 index fund, you made out well with a 13.63% return for Vanguard's VFINX.

Good, that means 2014 investment results are good for you. Mine was also normal not much low or high.