February 18, 2014

My Roth IRA returns for 2013

In 2013 my Roth IRA had investment return of 28.0%.    The S&P500 returned 32.39% with dividends reinvested.   So I saw great growth but not as good as simply betting on 'average'.    And from that perspective I did poorly.  Its easy to feel happy about getting 28% but I could have gotten 4.39% more by simply buying a generic index fund.

Apparently I didn't figure my return for 2012 so I'm not sure how I did that year.     I don't have good records for that period but I've got one data point captured in Dec. 2011 and then I know how much I had in Dec 2012 so I can at least estimate based on that period.   At least from Dec to Dec I was up about 10%.  The S&P500 was up 16% for the year total.  Thats not perfect but close enough.   So it looks like I underperformed the S&P that year by 6%.
In 2011 I beat the S&P by1-2% so that wasn't bad.

Back in 2010 I doubled the performance of the S&P500 by getting 30.1% versus 15.06%

So for 4 years I'm  at +15%, +1%, -6% and -4%.    That puts be about 10% above the S&P500 in total for the 4 years.   Not bad I guess.   But the latest trend in the past 2 years isn't good and I'm really just riding the success of 2010.

Me S&P500
2010 30.10% 15.06%
2011 3.70% 2.11%
2012 10% 16%
2013 28% 32.39%
net 90% 80%

I've gotten away from my old dividend stock investing strategy due to lack of time and attention and I've now mostly switched over to investing in general index ETFs.   However I do have a preference for dividend focused ETFs.   Over 85% of my Roth account is now split between DVY, VTI and VYM.    DVY and VYM are dividend focused and VTI is just the total stock market.


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