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R.O.I.'S
INVESTMENT RETURNS – It is very important to keep in mind that ROI’s investment
management objectives are to:
(1) Participate in Up Markets; and,
(2) Control participation in Down Markets; (not
to beat some popular index) because accomplishing BOTH of these objectives makes it easier for clients to:
(a) Reach their long-term investment accumulation needs; and,
(b) "Sleep better" in
the mean time.
The chart below, that reflects the actual IRR% of the "unmanaged"
Vanguard S&P 500 mutual fund in a client’s portfolio, and, ROI’s most common client allocation for
the 1/1/99-8/18/03 period, illustrates the tremendous benefit of accomplishing both of the above objectives: 
R.O.I. Typical
Portfolio Returns*
| YEARLY | YEARLY | ACCUMULATED | ACCUMULATED | YEAR | %
RETURN | $ RETURN** | % RETURN | $
RETURN** |
1995 *** | 24.66% | $24,660 | 24.66% | $124,660 | 1996 | 15.49% | $19,310 | 20.08% | $143,970 | 1997 | 17.99% | $25,900 | 19.38% | $169,870 | 1998 | 10.39% | $17,649 | 17.13% | $187,520 | 1999 | 32.42% | $60,794 | 20.19% | $248,313 | 2000 | -1.99% | ($4,941) | 16.49% | $243,372 | 2001 | -4.91% | ($11,950) | 13.44% | $231,422 | 2002 | -7.32% | ($16,940) | 10.84% | $214,482 | 2003 | 30.81% | $66,082 | 13.06% | $280,564 | 2004 2005 2006 2007
2008
2009 | 10.95% 10.00% 16.42% 13.68%
-32.60%
25.33% | $30,722 $31,129 $56,225 $54,534
($147,734)
$77,308 | 12.85% 12.59% 12.91% 12.97%
9.71%
10.75%
| $311,286 $342,415 $398,640 $453,173
$305,438
$382,806 |
Note: During the worst decade of
all time, i.e., 2000 through 2009, R.O.I.'s Typical Portfolio "Average Annual Return" was 6.04%****,
compared to the S&P 500 Index's return of 1.21%*****.
*
Based upon most common client allocation, in actual client's IRA account that has no new contributions or withdrawals
(including R.O.I.'s fees) besides the initial lump sum contribution. There can be no assurance that these returns will be obtained
in the future -- all R.O.I. can promise is our best efforts to Participate in Up
Markets and Control Participation in Down Markets.
** Assumes $100,000 Initial
Investment
*** Annualized
IRR% for 2/28/1995-12/31/1995 period.
****Sum of 2000 through 2009 "Yearly % Return" divided by 10 years.
*****Sum of S&P 500 Index 2000 through 2009 returns (with dividends) divided by 10 years. S&P 500 returns taken
from http://en.wikipedia.org/wiki/S&P_500 on March 20,2010.
351 East 140 North, Lindon,
UT 84042-2004
Phone: 801.785.3254 Fax: 801.785.3244 Email: ronaldolsoninc@gmail.com
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