After I received my final statements for the year, I review how I have done. This year is a surprise for me. Generally, I outperform the market in down markets (bear) and underperform the market in up markets (bull). This year was a great year for the TSX as the index was up 21.74%. If you add 2% for dividends it is 23.74%.
Actually, outperforming the market in down markets (bear), that is not going down as much, and underperforming the market in up markets (bull) is a good thing. It means that my returns do not vary as much as the market, so in the longer term, I will outperform the market.
However, I did better than the TSX with a total return of 30.06%. This figure takes into account the money I take out of my account each year for spending. It is interesting to look at what each account did. My trading account had a return of 27.90%, my TFSA account had a return of 9.32%, my RIF Account had a return of 31.97% and my LIF account had a return of 38.74%.
What is interesting is that TFSA account is my fooling around money and it made the lowest return. My LIF account has been interesting also because I had two large sums to invest because of pension money I received when I left jobs. It has always varied a lot against the TSX.
I think that my RIF and LIF did better than my Trading Account because, I take money from my trading account during the year, but only take money out of my RIF and LIFE at the end of each year. When I transfer money from the RIF and LIF, half is in cash (mainly to pay tax) and half is in stock. However, I do have a larger percentage of cash in my RIF and LIF accounts.
I get from TD WebBroker, each year what they consider my return on each account. However, I do not agree with all their values. Mostly, I disagree with the values they start with. (I do go back and check my figures against old statements.) I do take into account items posted in January for December. I do not know where they get some of their starting value from. However, the returns they get and the ones I get do not vary by any significant amount.
On my other blog I wrote yesterday about National Bank of Canada (TSX-NA, OTC-NTIOF) ... learn more. Next, I will write Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM) ... learn more on Friday, January 21, 2022 around 5 pm.
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