Quarterly Report - 2021 Q1
It's time for my first quarterly performance/historical returns report for my Roth IRA accounts following my financial independence retire early (FIRE) tactical asset allocation (TAA) trading system. I expect to report quarterly, YTD, 1 year, 3 year, 5 year, and 10 year compound annual growth rate (CAGR) each quarter. However, it will be a while until I have enough history to report all of those those historical returns. I only have one quarter and YTD for this report.
FIRE Accounts' Starting Balances
First I'll recap my starting balances for both of my Roth IRA accounts. My starting balances at the end of 2020 were as follows:
- Fidelity Investments - $10,941.38
- Schwab - $9,031.32
I documented my starting balances in an article earlier this year. See this post for complete details.
My first quarter 3/31/2021 ending balances are as follows:
- Fidelity - $12,228.81
- Schwab - $10,160.68
FIRE Accounts' Returns
So I'll perform a few calculations to obtain my first quarter performance figures. I come up with the following gains:
- My Fidelity account gained $1,287.43 for a 11.77% first quarter return. YTD return is the same of course.
- My Schwab account gained $1,129.36 for a 12.5% first quarter return. YTD return is the same.
Now if I can just gain that much in each of the remaining three quarters, I'll be very happy. I don't really expect to repeat this level of historical returns every quarter, but I can hope!
Benchmark Returns
Let's take a quick look at my benchmark, the S&P 500 as represented by Vanguard's index fund VFINX. VFINX was up 5.81% for the first quarter, so I managed to beat the market in Q1 of 2021.
Here's hoping I can stay ahead of the market!
Recap
Just to recap, my 2021 Q1 returns were as follows:
- Fidelity FIRE mutual fund account - up 11.77%
- Schwab FIRE ETF account - up 12.5%
- S&P 500 index (VFINX) - up 5.81%
Thanks for reading!
Mike
Editor, The FIRE Letter
Disclaimer: All strategies including recommended trades published here are for educational and informational purposes only. They are not recommended for any specific individual, business, or other legal entity. I don’t know your age, income, personal or financial circumstances and cannot possibly suggest any financial or investing decisions for you. Seek advice from your accountant, financial advisor, and attorney before making any investing decisions. Always conduct your own due diligence before making any investing decisions. Seriously!
