Reviewing Last Year

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.

This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.