Secondary menu

Rate of Return on 100% TIP Portfolio is .7% in reports?

Submitted by kimmcrobbie@ver... on 15 September 2008 - 9:48pm

Tried your suggestion for a 100% Long-Term Inflation Indexed Government Bonds portfolio.

Why does it not reflect the 2.97% Average Real Return in my retirement account spread-sheet?

$179,210 in retirement account assets in the 2008 row generates $1303 in income in 2009 or a .7% return in today's dollars.
$180513 is the assets for 2009. About $165,000 of this is in a Roth IRA.

Also tried a 50% TIP with 10% each in REIT, Emerging, non-US Equity and Small and Large Caps. The report showed $3813 in income for assets of $181,651 or a 2.099% return (and not the 8.8% the Monte Carlo return info suggests.)

‹ Still recommending TIPS with the current unpleasantness? Aon RIRR problems ›
Submitted by Dick Munroe on 17 September 2008 - 9:01pm.
1

If you're using something other than the latest update, there is a possiblity that your database got corrupted when you set up the TIPS information. Without looking at your database, we can't tell what happened, but we definitely don't see .7% returns when we run pure TIPS portfolios.

Best,

Dick Munroe

Submitted by Lowell Williams on 18 September 2008 - 1:29pm.
2

Larry

make sure you have the latest version 2.11.11B

Go to your Monte Carlo section. Clear all the choices out and re-implement them. That should clean up any problem with the database.

Submitted by kimmcrobbie@ver... on 19 September 2008 - 6:17pm.
3

I had 3 "families/profiles" in.

I changed the portfolios of the other 2 families/profiles to 100% TIPS and the reports reported a 2.3% rate of return vs the .7% return for my profile.

So I input a new family/profile for myself and the new profile also got a 2.3% return.

I have one more question re the 2.97% return shown in the Monte Carlo Tables vs the 2.3% shown in the reports? I'll post as a new topic.

Share this

Navigation