Compare the past risk and return of your current investments to the IFA Individualized Index Portfolio recommended at the end of your Risk Capacity Survey, the S&P 500 Simulated Index, or 20 other IFA indexes.
When IFA Indexes are shown in IFA Index Portfolios, all returns data
reflects a deduction of 0.9% annual investment advisory fee, which is the maximum
IFA fee. Your fee may be less depending on assets under management at IFA. Fee reductions
can be reflected in the calculator by selecting "Addition" in the drop down menu
in Section 5, and setting the Percentage amount to the difference from 0.9%. So
a fee of 0.8% could be calculated by adding 0.1%. Unless indicated otherwise, data
shown for each individual IFA Index is shown without a deduction of the IFA advisory
fee. We choose this method because the creation, choice, monitoring and rebalancing
of diversified index portfolios are the services of the independent investment advisor
and at that point the fees are appropriate to deduct from the whole portfolio returns.
Since we accept no fees from investment product firms, IFA compares index funds
based on net asset value returns, which are net of the mutual fund company expense
The annualized standard deviation number is presented as an approximation by multiplying
the monthly standard deviation by the square root of twelve (3.464), the number
of periods in a year. Note that the standard deviation computed from annual data
may differ materially from this estimate. Returns of the twenty IFA Index Portfolios
are shown net of IFA and DFA fees, and returns of the fifteen IFA indexes are shown
net of DFA fees only. IFA Indexes have been constructed net of typical mutual fund
fees. Backtested performance is hypothetical (it does not reflect trading in actual
accounts) and is provided for informational purposes to indicate historical performance
had the Index Portfolios been available over the relevant period. IFA did not offer
the Index Portfolios until November 1999. For a complete explanation of backtested
performance, please visit www.ifabt.com/
After-tax returns are net of federal taxes only, and they exclude the
impact of capital gains resulting from liquidation and rebalancing. Where possible,
the after-tax returns supplied by DFA for the standard (non-tax-managed) funds are
shown. These returns can be materially different from actual after-tax returns experienced
by clients with tax-managed funds. The primary purpose of having this data on the
returns calculator is to facilitate an estimate of the impact of federal taxes on
returns. For periods prior to the existence of the DFA mutual funds, the pre-tax
returns of the IFA Indexes with an estimated adjustment for the impact of taxes
are used. A 35% rate is applied to distributions of interest income and short-term
capital gains. A 15% rate is applied to distributions of qualified dividends and
long-term capital gains. After-tax returns are not available for the first 11 months
of current year, because the majority of the tax impact occurs in December, due
to capital gains and dividend distributions.
Both percentage and dollar amount addition or withdrawals are assumed
to occur monthly at the end of each month.
IFA Index and Index Portfolio data based on starting value of one, as of Jan 1, 1928 using 0.90% Advisory Fees. Sources and Disclosures: ifabt.com,
dfaus.com & yahoo.com.
When inflation-adjusted returns or cash flows are utilized. Actual CPI data for recent months may not yet be available. If so, then the CPI change for the most recent month of actual data will be replicated to subsequent months.