Investment Performance Calculations

Options
Chuck Cobb
Chuck Cobb Member ✭✭
edited January 2022 in Investing (Windows)
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?

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Options
    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
    Jim_Harman SuperUser ✭✭✭✭✭
    Options
    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.

      
    QWin Premier subscription
  • Chuck Cobb
    Chuck Cobb Member ✭✭
    Options
    I stand corrected. It looks like it is doing the calculation correctly.
This discussion has been closed.

Categories