While the turning of the calendar is often a preamble to some time-honored renewal rituals, such as resolutions and budgets, reminders of progress from the prior year are also present. One crucial report card most usually examine are portfolio statements from various investments vehicles strewn across various brokerage houses.
Depending on the year, and likely asset class, some accounts no doubt have increased in value while some have retreated, but the presentation of the reports are usually visually stunning. Pie charts, bar and column graphs galore!
However, is the information amplified of most insight? What about benchmarks, meaning how is the account faring as compared to other similar alternatives? What about progress towards goals, or a ‘percentage of completion’ approach to the original intended destination? How volatile was the account(s) over the year, and how does that compare with the suitability for the owner or the purpose? What are the cumulative costs of
those decisions, and who is actually benefitting?
Wealth management, and finance in general, is a complex arena, rife with risk of woefully underperforming personal needs and expectations. Ensure information and results are meaningful.
Life is busy, and money is important – partner wisely.