Calculating Returns

[Wrngway]

As I've just found this site, I'm new to a lot of the information and resources here. Recently I've been using the TSPTalk Spreadsheet to track returns. Reading a recent post from GeorgiaGal I noticed that she was using a simple formula. I used both methods and have come up with two different "returns".

GeorgiaGal described her method as:
(Current Balance - First of Year Balance - Contributions to Date) divided by FOY Balance

Now this doesn't take into account compound returns from contributions during the year, which means it gets less accurate as the year progresses. As of 26-Jan I have 0.52% with GeorgiaGal's method and 0.47% on the spreadsheet. My question is, how accurate is the spreadsheet?

 

[tsptalk]

Welcome Wrngway. The spreadsheet is not being used to show the actual return in our accounts so much as being a way for us to compare how our interfund transfers are doing when compared to the other funds. It also lets us compare our returns to each others' without regard to balances.

But you are correct, although close, it is not exactly precise.

 

[GGal]

As I've just found this site, I'm new to a lot of the information and resources here. Recently I've been using the TSPTalk Spreadsheet to track returns. Reading a recent post from GeorgiaGal I noticed that she was using a simple formula. I used both methods and have come up with two different "returns".

GeorgiaGal described her method as:
(Current Balance - First of Year Balance - Contributions to Date) divided by FOY Balance

Now this doesn't take into account compound returns from contributions during the year, which means it gets less accurate as the year progresses. As of 26-Jan I have 0.52% with GeorgiaGal's method and 0.47% on the spreadsheet. My question is, how accurate is the spreadsheet?

To clarify, that is not my "method." I was merely running a check at that point to see how badly I was doing.....I actually go by the spreadsheet, which was not updated at that point, or I couldn't open it, or something.

GA