Comments on: Question From a Reader – Calculating Personal Rate of Return http://allfinancialmatters.com/2007/01/16/question-from-a-reader-calculating-personal-rate-of-return/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: Michael F. http://allfinancialmatters.com/2007/01/16/question-from-a-reader-calculating-personal-rate-of-return/comment-page-1/#comment-187995 Michael F. Tue, 11 Dec 2007 07:42:42 +0000 http://allfinancialmatters.com/?p=1497#comment-187995 Nearest I can tell, Fidelity subtracts company matching funds from both sides of the equation to get their number: PRR = [ (end_bal - company_match) ] [ ------------------------- ] - 1 [(beg_bal + your_contributions + loan_payments)] Nearest I can tell, Fidelity subtracts company matching funds from both sides of the equation to get their number:

PRR = [ (end_bal - company_match) ]
[ ------------------------- ] – 1
[(beg_bal + your_contributions + loan_payments)]

]]> By: Joe http://allfinancialmatters.com/2007/01/16/question-from-a-reader-calculating-personal-rate-of-return/comment-page-1/#comment-166707 Joe Tue, 06 Nov 2007 19:18:42 +0000 http://allfinancialmatters.com/?p=1497#comment-166707 I was wondering how Fidelity actually computes their rate of return, when viewing your online statements. I can't seem to make any of the formulas on this site come up with the same percentage that Fidelity does. Can you please help? I was wondering how Fidelity actually computes their rate of return, when viewing your online statements. I can’t seem to make any of the formulas on this site come up with the same percentage that Fidelity does. Can you please help?

]]> By: paul http://allfinancialmatters.com/2007/01/16/question-from-a-reader-calculating-personal-rate-of-return/comment-page-1/#comment-63870 paul Wed, 17 Jan 2007 13:20:06 +0000 http://allfinancialmatters.com/?p=1497#comment-63870 Mathematically you are indeed correct not to include company match. On the other hand the company contribution is in fact part of the total return since you did not contribute from your pocket. Including company contribution also will help provide added incentive to save in your 401k since it will show you how really good your returns can be. I just saw a news item that stated that the median retirement account balance was about $60k. Anything that can be done to encourage people to save in their 401k's can help to increase that number. Mathematically you are indeed correct not to include company match.

On the other hand the company contribution is in fact part of the total return since you did not contribute from your pocket. Including company contribution also will help provide added incentive to save in your 401k since it will show you how really good your returns can be.
I just saw a news item that stated that the median retirement account balance was about $60k. Anything that can be done to encourage people to save in their 401k’s can help to increase that number.

]]>