1 of 2 – Additions to your December 31, 2016 Assante Statement: Rate of Return

You will now see rate of return information in your year-end Assante statements.  On the surface, you would think that rate of return has one single interpretation.  In fact, there are two generally accepted methods of calculating rate of return:

  • Time-weighted rate of return or investment rate of return.  This describes how the investment has performed while you’ve been invested.
  • Money-weighted rate of return or personal rate of return.  This describes the rate of return of your account and incorporates the timing impact of contributions and withdrawals.

It can feel odd that the growth in your portfolio can generate two rate of return numbers.  Watch this quick 3 minute video to better understand the difference.  Let me know if you have any questions.

January 19, 2017