🔺 r/personalfinanceucrowsfascinateme·16 days ago
Am I wrong? I strongly disagree with the numbers my financial advisor uses to say he beat S&P 500
Sorry if this is the wrong sub. Please remove if so. I think my financial advisor is giving bad-faith numbers to show how his returns compare to the S&P. I'm pretty confident about my math but he was adamant and now I'm second guessing myself. Details: I rolled over $10,000 from a 401k into an IRA in 2015. I never deposited into or withdrew from the account. In 2026, the IRA is worth $31,596. These are not the actual numbers, but they are proportionally accurate. I told my financial advisor I want to get away from his fee-based active managing and put my money into a low-cost mutual fund that tracks the S&P 500. He said that he beat the S&P 500 over the past ~11 years, because my account has a time-weighted ROR (rate of return) of 313%, whereas the S&P has a PR (price return) of 300% in the same time period. (I know that he is ignoring any possible S&P dividends by focusing only on S&P price; I know that this hurts his argument but I'm ignoring it because the statistic he uses to compare account gains to S&P gains is such a glaring issue to me). This is where he lost me. On the day I opened the IRA, the S&P 500 opened at 1924. The day I told my finan…