Average Returns for Investments and the Portfolio
How are the average returns each year calculated? Does the program look at the average return of every investment based on its underlying holdings or does it simply use an average for the entire portfolio?
WealthTrace does not simply use an average annual return for the portfolio. It looks at the annual return for every investment, which is much more accurate. The average annual return for each investment is the weighted average annual return using the balances of the underlying holdings. When making projections the program uses the weighted average annual return of each investment.