Ways to compare IRA results (US)

Question: I have a IRA account that I am paying a 1% management fee. I am looking for any tools that can show what kind of results I would have received if I choose a set of funds for the account. I would like to compare this to the results I am getting now.

Are there any spreadsheets, websites, tools, or books (anything) that can help me do this?

Answer:

To compare your current IRA performance with a self-managed portfolio of index funds and bonds, you can use the following tools:

  1. Morningstar Portfolio Manager:

    • Free tool to track and analyze portfolio performance
    • Allows comparison with benchmarks and other portfolios
    • Provides detailed analytics and historical data

  2. Personal Capital:

    • Free investment tracking and analysis tool
    • Offers portfolio comparison features
    • Provides a fee analyzer to assess the impact of fees on your returns

  3. Portfolio Visualizer:

    • Free online platform for portfolio analysis and backtesting
    • Allows you to create hypothetical portfolios and compare their historical performance
    • Offers asset allocation and risk analysis tools

  4. Yahoo Finance Portfolio:

    • Free portfolio tracking tool
    • Allows you to create multiple portfolios and compare performance

  5. Excel or Google Sheets:

    • Create your own spreadsheet using historical price data
    • Download historical data from sources like Yahoo Finance or Google Finance
    • Calculate returns and compare with your current IRA performance

To use these tools effectively:

  1. Input your current IRA holdings and performance

  2. Create a hypothetical portfolio with your chosen index funds and bonds

  3. Compare the performance over the same time period

  4. Factor in the 1% management fee when analyzing the results