Performance numbers based on past results can be unreliable and complicated. It is hard to ascertain exactly how the performance was measured, for what period of time, and which index it was compared to. Given the extreme variance in performance reporting standards in the investment industry, we benchmark our client portfolios to a representative blended index that matches the asset allocation in the account.
We endeavor to compare apples to apples. The performance reports are produced quarterly by an outside neutral custodian. In our view, the bigger question is matching your objectives and risk tolerance to the proper asset allocation. Higher performance is typically aligned with higher risk; one can’t have both.
We center our discussion on an asset allocation that is matched to your speed limit. You may want to be in the fast lane, the middle lane, or the slow lane on your financial journey; we strive to match a portfolio that will fit your expectations, goals, tax situation, and time frame. We do not believe in a ‘one size fits all’ portfolio.