Monday, April 17, 2006

Savings vs. Profits



I was curious what fraction of my net worth accumulation had come from saving and how much from investment profits. I created this chart, which also breaks things down between retirement and non-retirement accounts. Profits on the retirement accounts now exceed contributions. Performance on the non-retirement accounts has not been as good. Cumulative profits in both categories were negative in January 2003 after substantial bear market losses. Non-retirement saving has not been much recently as I have fully funded a Roth IRA for 2005 and 2006.

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