Don’t Let Benchmarks Keep You from Focusing on Reaching Your Personal Financial Goals

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Would you rather reach your personal financial goals or have your money manager beat a benchmark that they set? Read on to learn more about utilizing a “goals based” approach in order to avoid the pitfalls that come from “benchmark-it is.”

Many studies are out that show “active” money managers notoriously have a tough time beating the market. The “benchmarks” they are setting are too often fool’s gold considered to the figures they’re actually able to obtain.

What’s shocking is that most money managers are aware they won’t hit their benchmarks, but out of habit will continue to utilize the same system. This system shows customers statistics that just won’t add up. Despite rarely winning, they still set out to beat someone.

This approach is a disservice to most clients. The right approach is to utilize investments as tools to reach reasonable financial goals that are set with the client. It’s irrelevant how the money manager did, if the client didn’t reach their goals.

Here are some ways to tell if your money manager is too focused on benchmarks:

  • Do you have a Cash Flow Statement and Written Balance?
  • Have you decided on your specific financial goals for the next 3, 5 and 10 years?
  • Did you take the time to consider whether or not your goals are realistic?
  • Have you taken a deep dive into your current investments and considered making adjustments?
  • Are you reevaluating your investments at least once during any year?
  • Do your find your financial advisor rarely actually asks you about personal financial goals.

You’re at serious risk of missing your financial goals, if you answered yes to just one of these questions.   Don’t worry, there are better ways available.  Peter Culver can provide you with an approach that is focused solely on the goals that that you set together.

Don’t waste time worrying about your financial goals. Please contact Peter Culver at pculver928@gmail.com or 917.697.4156 and get the information you need.

 

 

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