Investment Performance Calculations

Chuck Cobb

I'm at a point where I have to take Required Minimum Distributions (RMD) from my IRA account. In the Investment Performance Report, the report is showing a negative return for this acccount and I don't believe that is correct. I don't believe that it is treating the RMD properly to calculate the overall investment performance. Is there a way to fix this?

Tom Young

It's impossible to say what's going on here since there's no facts to go on. 

The Investment Performance report should treat the gross distribution in the Returns column, exactly the same as in any other Investment Account, and then do the math.  There's nothing about an RMD that's any different than any other transfer of money out of an Account.

How, exactly, do you thing the calculation isn't treating the RMD properly?

Jim_Harman

Your question confuses me. If you withdrew an RMD from the account that amount should show in the Returns column of the IPR.

If the date range for the IPR is set to YTD, remember that the Average annual return (IRR) is an annualized number, which assumes that the returns so far this year will continue at the same rate for the rest of the year. This tends to greatly magnify any YTD changes early in the year.

  

Chuck Cobb

I stand corrected. It looks like it is doing the calculation correctly.