Author Topic: Help Understanding NAR, IRR when Reinvesting Principal and Interest  (Read 12973 times)

TonySaunders

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Re: Help Understanding NAR, IRR when Reinvesting Principal and Interest
« Reply #30 on: July 22, 2014, 11:15:48 PM »
Tony,

What is your actual IRR?  What method do you use for your IRR calculation? (ex. Excel XIRR, InterestRadar).  Does it include cash drag?

As of today, my IRR is 14.94%. It's down from 15.5% because I made a big deposit last month and it took a while to get it invested.

Yes, it includes the effect of idle cash, which earns 0% interest. (That's "cash drag" right?)

turing

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Re: Help Understanding NAR, IRR when Reinvesting Principal and Interest
« Reply #31 on: July 23, 2014, 12:11:19 PM »
Ahhh! I can't believe I've never noticed this "Understanding your returns" page before! Here's what mine says, but it's confounded by my use of trading. So not nearly as impressive as it seems.


It took me a while to find where those benchmark charts were located too :)  I saw people posting screenshots of them, but couldn't find my own.  The link text is not very helpful for where it actually takes you.