Technical Notes

When Multiple Assets are entered, the calculator computes the results of each asset independently of other assets, meaning the results of one asset have no bearing on another. At the end of each year, the results are calculated by combining the values of all assets. Some values are simply added together: annual contribution, balance, basis, income, risk adjusted basis, tax paid, total distribution. Other values are computed by first assigning a percentage depending on their position size in relation to the entire balance of the combined assets, then added together to give a total: yield, return and yield on cost.

When Compound/DRIP is selected (turned on at individual asset level) the income produced from that specific Assets gets reinvested into ONLY that specific asset. However, there is a scenario where purchase of an entire basket of Assets occurs: inputs from Earned Income, Unearned Income, and Annual Contribution are split evenly between all the assets. For instance, if monthly Earned Income is $1,000 and there are 4 assets, each asset will have $250 allocated to it to either purchase new stocks/units OR increase the balance if Portfolio.

To see results for a Single Asset or investment, exclude all other assets and Update the calculator.

Some mathematical discrepancies are expected due to rounding and complexity and timing of multiple calculations.

Inflation is not currently calculated into these numbers.

Risk Adjusted Basis is the adjusted entry price of the asset when income is factored in. Meaning, it shows the impact of reinvested income (dividends, rents, interest, etc) on original capital investment. As income is reinvested the original capital at risk is lowered. It can also be used to identify your break even point where you’ve made back all initial investment.

As of July 15, 2020: Logic adjustments were made so that all investment types (regardless of Portfolio, Individual Stock, or Units) follow the same algorithm. The nominal value of the yield is calculated and the yield growth rate is applied to this nominal value. This affected the following outputs:

• Total Dividends/Total Income

• Total Distribution

• Yield on Cost

• Risk Adjusted Basis

This change was made to more accurately simulate real world scenarios and adapt industry standards for yield calculations.

Rounding was turned off in the algorithm. Rounding is only applied at the very end of the cycle and right before the final values are displayed. This was done to be as accurate as possible with every calculation. It also reduces the output difference between Portfolio and Individual Stock scenarios

Dividend per share and income per unit were added in the results section and the output table. This shows the nominal value for each individual share or unit for a given year. This value is displayed to the tenth of a cent.