bababill
Member of DD Central
Posts: 526 
Likes: 245
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Post by bababill on Apr 14, 2016 15:18:52 GMT
stevio: Funding Knight I was referring to however cash drag applies to most other sites in some way. james: Will study XIRR tomorrow/this weekend. Looks just what I am looking for; thanks for the tip.
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Post by Financial Thing on Apr 15, 2016 11:24:05 GMT
Why not use a spreadsheet to calculate your XIRR (annualised return on investment)? One of the easiest ways to do that just involves tracking all deposits and withdrawals you make plus the current balance and automatically includes all fees as part of the calculation. Time consuming if you're invested in many platforms no?
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Post by lynnanthony on Apr 15, 2016 13:27:25 GMT
Why not use a spreadsheet to calculate your XIRR (annualised return on investment)? One of the easiest ways to do that just involves tracking all deposits and withdrawals you make plus the current balance and automatically includes all fees as part of the calculation. Time consuming if you're invested in many platforms no? I would not say so. I have a spreadsheet per platform. Perhaps the first one took half an hour to create. Converting to other platforms took about ten minutes a platform. For each subsequent deposit or withdrawal to/from a platform it must take all of a minute to add a line to the relevant spreadsheet. Ditto plugging in current value to get an answer.
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Post by Financial Thing on Apr 15, 2016 13:35:38 GMT
Time consuming if you're invested in many platforms no? I would not say so. I have a spreadsheet per platform. Perhaps the first one took half an hour to create. Converting to other platforms took about ten minutes a platform. For each subsequent deposit or withdrawal to/from a platform it must take all of a minute to add a line to the relevant spreadsheet. Ditto plugging in current value to get an answer. What if you're not making further deposits or withdrawals, just reinvesting, does this still work?
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Post by lynnanthony on Apr 15, 2016 13:40:09 GMT
I would not say so. I have a spreadsheet per platform. Perhaps the first one took half an hour to create. Converting to other platforms took about ten minutes a platform. For each subsequent deposit or withdrawal to/from a platform it must take all of a minute to add a line to the relevant spreadsheet. Ditto plugging in current value to get an answer. What if you're not making further deposits or withdrawals, just reinvesting, does this still work? Yes, very much so, because all you are doing is comparing what you put in to the platform and when, with what you have on the platform today, and getting a result which is a percentage.
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james
Posts: 2,205
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Post by james on Apr 15, 2016 19:22:04 GMT
Time consuming if you're invested in many platforms no? All you have to do is update at your convenience with the amounts of any new payments you make into your account and any withdrawals plus the current total cash plus investments balance. I doubt that most people do so many deposits and withdrawals that it'd become onerous. Someone who does do a lot of depositing and withdrawing could put in say a monthly total in and out as one row once a month. The calculated XIRR will be less accurate but it won't be a big difference after a few years. The difference will grow less significant over time. To get started with a particular account you can do one of two things: 1. Enter today's date and the current balance as a deposit to the account. XIRR will be from this starting date. 2. Enter the past deposits and withdrawals. XIRR will be from the first date you use. I currently do this for all P2P, S&S ISA and pension accounts because it's so little work and I like to know how I'm doing with my investments. I could do an overall one for all of those combined or even for my whole financial situation but I don't do that. Whole financial situation would be updated by pay or pension received each month and the total value would be the total value of all savings and investments. You'd probably add one helper cell per account and calculate the total from those rather than entering that by hand.
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