How do you know if your investment strategy is working? Do you have a certain yearly return in mind? Are you trying to beat a certain benchmark? Many of us think this is what investing success looks like. We see a benchmark we want to beat or our friend tells us he is getting a certain amount of return on his investments, and that becomes our goal and the extent of our investment strategy. I believe you should instead measure your success against financial goals that make sense for you. When will you need to retire and how much risk do you want to tolerate? Do you plan to downsize once your kids go off to college? These questions are specific to you and chasing a benchmark will take you off the task of working out a plan that answers them.
So, what is your plan? I help clients create one based on goals that make sense for them, and I’d be happy to talk to you about what may make sense for you. Contact me to learn more and also look at the other videos on my blog that can help you set better goals as an investor.
DISCLOSURE: Investing involves risk and the potential to lose principal.