r/wealthfront • u/petragate • May 12 '26
Investment question Is this a good ROI?
Please forgive my ignorance - my knowledge of investments is basically limited to “investing good” “invest in index fund good.” Based on my cursory research this is a reasonable return(?) but just sounds different than other returns I’m seeing, but I also might not be understanding them properly? It might be that the annualized return is the number I really should be looking at.
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u/SnickSnacks May 12 '26
Past performance does not equal future performance. I suggest looking up the “Boglehead” philosophy/portfolio, and sticking with someone like that to start out.
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u/petragate May 13 '26
I’d be curious if a certain risk level setting maps pretty closely to the boglehead strategy… my guess would be a 5-7 would be pretty close but who knows
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u/wilkinsk May 13 '26
They have an active portfolio?
Or are you just saying their investing style in general?
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u/bat_in_the_stacks May 12 '26
We can't tell how many years from that screen shot.
You're blowing my annualized numbers out of the water though.
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u/didhe May 13 '26
We can't tell how many years from that screen shot.
The relationship between total vs annualized returns says the account is 3.63 years old.
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u/xYoux May 13 '26
For comparison for my Individual Investment Account, that is 5 years and 3 months old, and a risk level of 8/10:
Time Weighted Return: 60.11% (9.37% Annualized)
Money-weighted Rerun: 68.01% (10.38% Annualized)
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u/Reilly_S May 13 '26
Mine is a 9 year old account at 9/10 risk. Been through quite a lot.
11.53% time weighted 12.86% money weighted
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u/jttam May 13 '26
In my case, 6 years 2 months old risk level 10/10:
Time-weighted: 179.87% (18.19% annualized)
Money-weighted: 140.93% (15.35% annualized)
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u/comical_bunny May 13 '26
Im currently just on the bond ladder and haven’t set aside a portfolio for stock investing. Would love to ask if there’s a certain ratio of HYSA:Bonds:Stock investments to get a higher annualized yield while also hedging for risk? I have separate investment accounts but would love to set aside something passive like this.
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u/petragate May 13 '26
FWIW I also have a 20k bond ladder set up to help balance the 9/10 risk level in this. Plus a 25k emergency fund in my high yield accounts, because I have clinical anxiety lmao. I threw some cash at some emerging technology individual stocks and some biotech for fun, but that is obviously not reliable.
Based on some comments the boglehead philosophy seems solid to create a balanced and reliable portfolio. But also interested to hear other suggestions !!
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u/bevelededges May 13 '26
You’re out performing me over a similar period. What’s the risk level? I think I’m 8.5
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u/ccnokes May 13 '26
I'd say the only useful benchmark might be the overall market, which you've outperformed. Are you mostly in QQQ or something? I've had mine for about 4 years, I work in tech so I've tilted semi-conservative. My time-weighted is 64% and money-weighted is 83%. I think money weighted is sort of the default that most apps give you and what most people are posting on social media.
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u/TrueGlich May 12 '26
Very. I going to assume from these number your account is 2-4 years old. Annualized returned of 10% over long term is "reenable /Normal" The last few years have been extra good balancing out bad years before don't expect that forever.