Fidelity's new rate of return feature

[ERICOPOLY]

 

By the way Eric... did you start reducing the leverage quite a bit or are you still very agressive?

 

BeerBaron

 

Reduced. RothIRA leveraged 1.15x.

 

 

[Guest kawikaho]

In surfing lingo: go big or go home!  j/k'ing.

[Uccmal]

honestly, u just luck out.

it would easily go the other way.

 

I agree.  

 

I disagree.  Some can be attributed to luck.  Some is strategy.  If you are not prepared you cant take advantage of luck.  Several of us on this board (actually its predecessor) bought FFH leaps in 2006.  I did then, and repeated it in 2007, 2008, and 2009, and have massively leveraged the gains in FFH stock.  Like Eric, though, it is no one trick pony.  It is more formulaic.  

 

Somehow one learns to identify the opportunities.

 

 

[ERICOPOLY]

In surfing lingo: go big or go home!  j/k'ing.

 

I could change my moniker from ericopoly to FittyCent (get rich quick or die trying).

 

Or maybe to GeneralPowell (Doctrine of overwhelming force).

[bookie71]

Actually with a program called T Value it is easy to compute with ithe in's and out's.  See if your accountant or tax preparer has it and will show you how to calculate it.  It is very easy to use and reasonably priced.

[nodnub]

Actually with a program called T Value it is easy to compute with ithe in's and out's.  See if your accountant or tax preparer has it and will show you how to calculate it.  It is very easy to use and reasonably priced.

 

bookie, do you mean this software? http://www.timevalue.com/tvalue.aspx

 

You can also use the XIRR function in Excel. You have to enable the "Analysis Toolpak" add-in. I think it installs normally with Office 2003 -- you just have to enable it.  XIRR will provide correct rate of return (taking into account any capital additions and withdrawals).

 

[bookie71]

bookie, do you mean this software? http://www.timevalue.com/tvalue.aspx

 

yes, except I think I only paid 49 for it years ago, but maybe that was only for an upgrade from DOS.

[alertmeipp]

honestly, u just luck out.

it would easily go the other way.

 

I agree.  

 

I disagree.  Some can be attributed to luck.  Some is strategy.  If you are not prepared you cant take advantage of luck.  Several of us on this board (actually its predecessor) bought FFH leaps in 2006.  I did then, and repeated it in 2007, 2008, and 2009, and have massively leveraged the gains in FFH stock.  Like Eric, though, it is no one trick pony.  It is more formulaic.  

 

Somehow one learns to identify the opportunities.

 

 

 

Of coz, I didn't mean only luck was involved. Smart ones will stop making this all-or-nothing bet after a while... some wasn't smart enough to stop and ending up in a disaster. First-hand experiences here.

 

Eric is smart enough to admit he lucked out. With that in mind, I am sure he will continue to be a successful investors for years to come. Over-confidences can kill!

[Rabbitisrich]

honestly, u just luck out.

it would easily go the other way.

 

I agree.  

 

I disagree.  Some can be attributed to luck.  Some is strategy.  If you are not prepared you cant take advantage of luck.  Several of us on this board (actually its predecessor) bought FFH leaps in 2006.  I did then, and repeated it in 2007, 2008, and 2009, and have massively leveraged the gains in FFH stock.  Like Eric, though, it is no one trick pony.  It is more formulaic.  

 

Somehow one learns to identify the opportunities.

 

 

 

Of coz, I didn't mean only luck was involved. Smart ones will stop making this all-or-nothing bet after a while... some wasn't smart enough to stop and ending up in a disaster. First-hand experiences here.

 

Eric is smart enough to admit he lucked out. With that in mind, I am sure he will continue to be a successful investors for years to come. Over-confidences can kill!

 

 

On the other hand, you could say that Ericopoly made a skilled choice to view his ROTH investments in the context of his total assets, which included the value of his future earnings. If he played that way with all his assets, in addition to taking on recourse leverage, then we could fairly say that the guy just got lucky.

[ERICOPOLY]

honestly, u just luck out.

it would easily go the other way.

 

I agree.  

 

I disagree.  Some can be attributed to luck.  Some is strategy.  If you are not prepared you cant take advantage of luck.  Several of us on this board (actually its predecessor) bought FFH leaps in 2006.  I did then, and repeated it in 2007, 2008, and 2009, and have massively leveraged the gains in FFH stock.  Like Eric, though, it is no one trick pony.  It is more formulaic.  

 

Somehow one learns to identify the opportunities.

 

 

 

Of coz, I didn't mean only luck was involved. Smart ones will stop making this all-or-nothing bet after a while... some wasn't smart enough to stop and ending up in a disaster. First-hand experiences here.

 

Eric is smart enough to admit he lucked out. With that in mind, I am sure he will continue to be a successful investors for years to come. Over-confidences can kill!

 

 

On the other hand, you could say that Ericopoly made a skilled choice to view his ROTH investments in the context of his total assets, which included the value of his future earnings. If he played that way with all his assets, in addition to taking on recourse leverage, then we could fairly say that the guy just got lucky.

 

I found the link last night where they provide a consolidated return for all accounts.  It is +64.36% going back to 2003 for a cumulative +3,265.95%.

 

But yes, when I was born in 1973 the top income tax rate was 70%.  Now we're at 35% maximum tax rate.  So I've been trying to grow that Roth account the fastest.  Including my wife's Roth account, we're at 43.85% of total consolidated assets are now in the Roth.

 

My FUR holdings are in my wife's Roth.  My bank holdings are primarily in my Roth.  My FFH.TO is 100% in my taxable account.

 

My living expenses are funded out of my taxable account.

 

I haven't worked in two years but I am getting off my butt and am starting a software consulting business -- using that money I can begin to grow my taxable IRA once again, or further fund the Roth.  If I can make 100k doing consulting, I can put 35k annually into a solo-401k and a further 10k into IRA (including a contribution for my wife).  So that's 45% of income I can defer tax on and grow for a long time.

 

I'm glad for the RothIRA given where I think taxes are likely to be heading (up).

[ClientNine]

Ericopoly,

 

You mention that you bought LEAPs in your IRA. I was under the impression that this is not possible. How did you do this?

 

Thanks,

ClientNine

[Myth465]

Some brokerages allow it. I know Think or Swim does. I wish I knew earlier though.

[ERICOPOLY]

Ericopoly,

 

You mention that you bought LEAPs in your IRA. I was under the impression that this is not possible. How did you do this?

 

Thanks,

ClientNine

 

At Fidelity, choose "Account&Trade" then "UpdateAccounts/Features".  Then choose "Margin&Options".  Then you want to enable "Purchase of Calls/Puts".

[ERICOPOLY]

Fidelity's calculation now claims that the account has cumulative performance since date of inception of 18,474.81%.

 

In March 2010, I wrote that the cumulative performance since date of inception was 25,153.26%.

 

The account since I last wrote about it in March 2010 has increased 80%.

 

It seems reasonable to conclude that they've either fixed a bug in their calculation of performance or they've introduced one.  It's weird -- cumulative performance shouldn't decline after an 80% gain.

 

They claim the account is now at 76.87% annualized compounding rate since inception vs the prior number of 118.51% that was reported by Fidelity two years ago.

[ericd1]

Sounds like a rounding error to me...LOL

 

Very impressive numbers -- Keep the ball rolling!

[racemize]

mine still isn't available--is it in some obscure place?

[ERICOPOLY]

After logging in, I get to the "Portfolio Summary" page.

 

There are tabs for "Summary", "Portfolio Positions", "Portfolio Research", "Performance", "Analysis", "Statements"

 

[racemize]

After logging in, I get to the "Portfolio Summary" page.

 

There are tabs for "Summary", "Portfolio Positions", "Portfolio Research", "Performance", "Analysis", "Statements"

 

yeah, that one doesn't show up for me =/.  The "analysis" section is labeled as new for me, but that's it.

[ERICOPOLY]

After logging in, I get to the "Portfolio Summary" page.

 

There are tabs for "Summary", "Portfolio Positions", "Portfolio Research", "Performance", "Analysis", "Statements"

 

yeah, that one doesn't show up for me =/.  The "analysis" section is labeled as new for me, but that's it.

 

It doesn't seem fair.  Perhaps call them and ask for the feature to be added to your account.  I never asked for it though.

 

Or tell them that you deserve a discounted rate for the discounted feature set that you have been given.